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Background Information: - Is A System That Has External Interactions

The document discusses contingency theory and the contingency approach to management. It defines contingency theory as stating that there is no single best way to manage an organization and that the most effective leadership style depends on the situation. The contingency approach focuses on adapting leadership to different situations based on internal and external factors. Some advantages are that it is adaptive and allows different leadership styles as needed. Limitations include that the literature is inadequate, it is complex to apply, and it is more reactive than proactive.

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Raymond Calan Casipong
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52 views16 pages

Background Information: - Is A System That Has External Interactions

The document discusses contingency theory and the contingency approach to management. It defines contingency theory as stating that there is no single best way to manage an organization and that the most effective leadership style depends on the situation. The contingency approach focuses on adapting leadership to different situations based on internal and external factors. Some advantages are that it is adaptive and allows different leadership styles as needed. Limitations include that the literature is inadequate, it is complex to apply, and it is more reactive than proactive.

Uploaded by

Raymond Calan Casipong
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Background Information

• During the 1960s, the importance of studying the impact of the


external environment on an organization became clear after the
development of:
 The open-systems theory;
theory and
 The contingency theory

 - is a system that has external interactions


CONTINGENCY
APPROACH

RAYMOND C. CASIPONG
CONTRIBUTORS
• L.W. Lorsch
• Joan Woodward
• Burns
• George Stalker
• Paul R.Lawrence
DEFINITION
•  also known as situational approach
•  states that there is “no one best way” to manage an organization.
•  theres is no one best way of organizing/leading and that an organization/
leadership style that is effective in some situations may not be
successful in others.

-as it is implied in the name, focuses on leadership in situations


EXAMPLE

A human resource manager in a company who gets a lot of


strikes
and labor turnover should not stick to one method of training
them where situations demands them to be retained so the best
way in such a situation is the retention program so as to reduce
labor turnover and strikes.
What you do “depends” on the“situation”.
• -internal contingency factors
• -external contingency factors
A shoe manufacturing company is faced with the problem of decreasing
profits;
Solution can be:
May establish a committee of sales and production personnel to
coordinate the production and distribution of goods under the assumption
that large inventories are responsible for the decline in profits
(Systems theory)
By application of a contingency perspective:
Would enable to examine the situation and to determine the cause
of decreased profits before a new procedure or program is implemented.
Advantages of Contingency Approach

The approach is adaptive in nature


The managers can consider the entire factors, analyze situations
thoroughly and then take the appropriate decision.
Due to this approach the scope of leadership has widened. 
The contingency approach allows an organization to choose different
leaders as per their leadership styles in various contexts.
Limitations and Issues
1. Inadequate Literature
2. Complex
3. Difficult Empirical Testing
4. Reactive not Proactive
Inadequate Literature
• Contingency approach suffers from inadequately of
literature. Therefore, it has not adequately spelled out
various types of actions which can be taken under
different situations. It is not sufficient to say that ‘a
managerial action depends on the situation.’
 Complex
• The suggestion of the approach is very simple, that is,
managers should do according to the needs of the situation.
• However, when put into practice, this becomes very
complex.
• Determination of situation in which managerial action is to
be taken involves analysis of a large number of variables
with multifarious dimensions.
Difficult Empirical Testing
• Contingency approach being complex, presents problems
in testing the percepts of the theory.
• For empirical testing of the theory, it is necessary that
some methodology is available.
• No doubt, methodology is available but because of the
involvement of too many factors, testing becomes
difficult.
Reactive not Proactive
• Contingency approach is basically reactive in nature.
• If nearly suggests what managers can do in a given
situation.
• Therefore, managers are responsible to manage the
environment in such a way that they avoid the
undesirable aspects of environment.
What would be the implications of Contingency
Approach in the present public administration?
Recommendations
The government can use this approach to solve different problems facing it
by using newer and many different approaches.
Efforts of government should be based on the actions outside the system so
that the society is integrated with the environment.
Leadership and government design must be appreciated to the given
situation. A particular action is appropriate only in certain circumstances.
There is no one best approach to management. It differs from situation to
situation.
What a leader does depend upon a given situation and there is an active
interrelationship between the variable in a situation and the administrative
action.
Conclusions
• Contingency theory is summarized to mean that
leadership is situational, that administrative actions are
contingent on internal and external factors as well as the
consistency of administrative action with the
requirements of internal and external factors.

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