Explain the Contingency Theory of mgt

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Describe shortly the Contingency Approach Theory of Management.

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Contingency theory has been developed mainly during 1970s.
The major contributors to this school of thought in management are Joan Woodward, Fiedler, Lorsh,
Lawrence etc. Theorists of all other approaches to management have not integrated the environment.
They often assume that their approaches and systems have universal applicability. The contingency
approach incorporates the environment and attempts to bridge the theory practice gap.

Contingency theory builds on the major premises of the systems. Theory that organisation is organic
and open system and there is a relationship of interdependence between an organisation and its
environment, as well as within and between its various sub-systems. The contingency theory aims at
integrating theory with practice in a systems framework.

According to this approach, management is situational. This approach rejects the universality of
management thesis. Managers should design organisations, define objectives and formulate policies
and plans according to the prevailing environmental conditions. Managerial policies and plans must
respond to changes in environmental conditions. Further, management should have sufficient skills to
anticipate and comprehend environmental changes, and to accommodate change. Finally, it should use
the contingency model in designing the organisation developing its information and communication
system, adopting effective leadership styles and formulating suitable objectives, policies and practices.

Thus, this approach provides a method of analysis as well as a way of integrating organisation with its
environment.

A contingency approach seems to hold a great deal or promise for the future development of
management theory and practice. The other approaches to management can all be in-corporates into
the contingency framework. At present, the contingency approach seems to be the only practicable way
to studying management. It adequately clears the nature of management. Hence it is the best approach
of all.