contingency theory Flashcards
describe the contingency theory
-Contingency theory tries to get the best fit between task, people and environment.
-A contingency approach states that no single ideal method of management exists.
-The best approach will depend on the variables (contingencies) that must be considered.
-Each situation and organisation is unique and management must be tailored accordingly to achieve maximum organisational effectiveness.
-Organisations cannot exist in isolation.
describe relevance of contingency theory
-Contingency theory is relevant today because managers must be flexible and decide what to do in various circumstances in a rapidly changing environment that exists today.
-Managers must adjust to take account of PESTEC factors and adjust accordingly.
-Contingency assumes managers can adapt but in reality this may not be possible
-Contingency approach could lead to uncertainty within the workforce if managers are always changing their approach
-The increase of global online competition from the rise of e-commerce sales in retailing means organisations need to develop a flexible structure to respond to rapidly changing markets.
-Inexperienced or new workers may require a more directed approach however experienced staff can be empowered and a manager must adapt to accommodate this.
