What are the contingency theories of leadership what are their implications to managers?
What is Contingency or Situational Approach to Management Theory?The contingency approach, often called the Situational Approach is based upon the premise that all management is essentially situational in nature. All decisions by managers will be affected (if not controlled) by the contingencies of a given situation. Show
There is no one good way to address any decision. Contingencies arise from various environmental factors. As such, managers must take into account these contingencies when making decisions that affect the organization.
Back to: BUSINESS MANAGEMENT Contingency theory builds upon accepted elements of System Theory. It recognized that an organization is an open system made up of interrelated sub-units. It adds, however, that the behavior of individual sub-units is contingent upon internal and external environmental contingencies. These might include the relationship between two other sub-units or external systems. This is particularly true when these internal or external units/systems have an effect on the desired outcome of a sub-unit. Contingency theory also proposes structural changes or designs, leadership styles, and control systems in an organization that allow it to react to environmental contingencies. What are the primary characteristics of the Contingency Approach?The primary characteristics of contingency theory include:
How do Contingencies Affecting Organizational Structure?Theorists Burns and Stalker, in their text "Management of innovation" (1968), identified two types of organizational structure (mechanistic) and (organic) and two categories of the environment (stable and dynamic). Mechanistic structures are more common in stable environments. Organic structures are more common and suitable in dynamic environments. The commonly-identified contingencies influencing organizational structure include:
The contingency approach defines not only patterns of internal interaction but also suggests organization designs and management approaches most appropriate for specific situations. Advantages and Disadvantages of Contingency TheoryThe primary advantages of contingency theory include:
The negatives of contingency theory include:
Who are the Primary Contributors to Contingency Theory?Some of the primary contributors to contingency theory include:
What are the implications of the contingency approach to management?The major implications of contingency theory may be summarized thus: management is entirely situational; managerial actions are contingent on internal and external factors; managerial actions must be consistent with the requirements of internal as well as external factors.
What are the implication of contingency factors on the organizations?Because the contingency theory gives managers a wide range of ways to react to problems, it also gives them significant discretion in their decision-making. Business owners who implement contingency theory must allow their managers to bend policy or even override it if the circumstances demand it.
How is the contingency theory applicable to managers?The contingency approach to management, also known as the situational approach, holds that there is no single, textbook rule for the best way to manage an organization. In each company's case, the “best” approach will be contingent upon the company's internal and external needs.
What are the 5 contingency leadership theories?Contingency Leadership Models
They include Fiedler's Contingency Theory, the Situational Leadership Theory, the Path-Goal Theory and the Decision-Making Theory. While all of these contingency leadership models are similar on the surface, they each offer their own distinct views on leadership.
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