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Essay on Contingency Theory
Management developed over time and evolved to incorporate changes in technology as well as the better understanding of human relations, interactions and the functioning of organizations. The human relations school of management focuses on managing the human side of organizations while the systems theory approach pulls together both the classical theory of management, bringing together some of the core components of classical and human relations theory. Organizations that exist in the real world are also open to the world outside the organization and these 'open systems' can be complex as a result of the interactions of people, technology and tasks. Organizations must, therefore, try to achieve a 'fit' between their structures and the context which is more effective. The quest for better management has resulted in a search for better principles on which management can be based and contingency theory is the result of the thinking that has developed over time that there are no one best set of universal principles for management. Contingency theorists assert that managers in an organization need to change their style of management to suit the changing conditions. They state that specific variables of situations need to be considered and decisions made in order to suite such an analysis (University of London, 2004).
Contingency theory states that social and business environment is constantly changing and that there is no single rule or law which will solve management problems at all times for all individuals at all places and in all situations. The main features of contingency include the following (Kannan, 2004):
-Because management is situational, therefore the techniques of management are also situational and are contingent on the situation. Hence, the diversity and complexity of the external situation that impacts on the organization should determine the management action and strategy.
-Management policies and practices should be spontaneously responsive to environmental changes................
