Contingency Theory Flashcards
Contingency is based…
On the theory that there is no single approach to organisational structure that suits all business at any point in time
Contingency tries to find the best fit between…
Task, people and environment
Contingency focuses on 3 factors which are…
External environment, organisational strength and weaknesses, organisational objectives
Advantages to contingency theory… x5
Helps the business adapt to PESTEC factors as they are more flexible
Wide range of ways managers can react to problems which gives them a large choice when making decisions
Employee initiative is encouraged…
Helps enhance managers decision making and leadership skills which empowers them.
No single method and draws the best parts out of other models
Disadvantages to contingency… x4
Managers may not be flexible as they are not able to adapt due to their instinctive management style
Time consuming to list out all the variables and they could change whilst deciding the perfect approach
Could lead to uncertainty due to managers always changing approach
Difficult to measure manager performance and could use variables to hide their bad performance
In contingency managers encourage employee initiative whereas…
In classical employees are supervised closely to ensure procedures are followed
In classical decisions are made by managers and communication down the hierarchy whereas…
In contingency, managers encourages lateral communication
In contingency managers mainly offer advice and information whereas…
In classical management stress complete obedience and loyalty of subordinates
In classical, it is based on one best way and fits simples organisational structures whereas…
In contingency, no single approach as all businesses are different, suiting a more complex structure
In contingency, time consuming discussions through quality circles whereas…
In classical, top down leadership facilitates for quick decision making
In classical, centralised leadership makes it hard to react to PESTEC factors locally whereas…
In contingency, they are ore flexible, allowing them to react quickly to PESTEC.
In contingency, they believe that workers are motivated by job satisfaction and social needs whereas…
In classical, they believe workers are motivated by financial and physical requirements
In classical, they use scientific management. And prioritise efficiency over everything else whereas…
In contingency, focus on external environment, organisational objectives and organisational strengths and weaknesses
In contingency, it allows businesses to adapt and adjust to any situation whereas…
In classical, a standardised approach is used regardless of the situation
In classical, task-orientated managers are suited in a formal situation whereas…
In contingency, relationship-orientated managers are better suited for working in informal situations
