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Contigency or Situational Approach

The contingency or situational approach asserts that managers must consider all aspects of the current situation and react accordingly. For example, an autocratic style may be best for leading troops in Iraq, while a more participative style works better for leading a hospital. This approach recognizes that organizations and their subsystems interact with and respond to their environments. While it acknowledges there are no universal management principles, it provides suitable alternatives for managerial actions based on internal and external conditions. However, determining the appropriate action can be complex, as it requires analyzing many variables. Additionally, the approach is more reactive than proactive.

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48 views

Contigency or Situational Approach

The contingency or situational approach asserts that managers must consider all aspects of the current situation and react accordingly. For example, an autocratic style may be best for leading troops in Iraq, while a more participative style works better for leading a hospital. This approach recognizes that organizations and their subsystems interact with and respond to their environments. While it acknowledges there are no universal management principles, it provides suitable alternatives for managerial actions based on internal and external conditions. However, determining the appropriate action can be complex, as it requires analyzing many variables. Additionally, the approach is more reactive than proactive.

Uploaded by

Ghulam Mustafa GM
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Contingency or Situational Approach

The situational or contingency theory asserts that when managers make a decision, they
must take into account all aspects of the current situation and act on those aspects that are
keys to the situation at hand. Basically, it is the approach that it depends. For example,
if one is leading troops in Iraq, an autocratic style is probably best. If one is leading a
hospital or University, a more participative and facilitative leadership style is probably
best.
When a subsystem in an organization behaves in response to another system or subsystem,
we say that response is contingent on environment. Hence a contingency approach is an
approach where the behavior of one subunit is dependent on its environmental relationship
to other units or subunits that have control over the consequences desired by that subunit.
Implications:
1. Management is entirely situational and there is nothing like universal principles of
management.
2. The approach suggests suitable alternatives for those managerial actions which are
generally contingent upon external and internal environment.
3. This approach suggests that since organization interacts with its environment, neither
the organization nor any of its subsystems is free to take absolute action.
Limitations:
1. Inadequate Literature. It has not adequately spelled out various types of actions which
can be taken under different situations.
2. Complex. When put into practice, this approach becomes very complex. Determination
of situation in which managerial action is to be taken involves analysis of large number of
variables.
3. Reactive not Proactive. This approach is basically reactive in nature. It merely suggests
what managers can do in a given situation.

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