CONTINGENCY
THEORY
of management
Centina, Lord Saver
Baldo, Jona
Maagad, Gerryca Isabelle
Maanizan,Wendy Faye
Mahinay, Gezeil
A contingency theory is an organizational theory that
claims that there is no best way to organize a corporation,
to lead a company, or to make decisions. Instead, the
optimal course of action is contingent (dependent) upon the
internal and external situation. Thus, a contingent leader
effectively applies their own style of leadership to the right
situation.
“The best way to organize depends on the nature of
the environment to which the organization must
relate”
William Richard Scott
Important ideas of
Contingency
Theory
Important ideas of
Contingency Theory
There is no universal or one
best way to manage.
Wide range of external and internal
factors must be considered
and the focus should be on the action that
best fits the given situation.
Effective organizations not only have a
proper “fit” with the environment but also
bet
ween its subsystems.
The needs of an organization are better
satisfied when it is properly designed and the
management style is appropriate both to the
task undertaken and the nature of the work
group.
“if” and
Management Situation
“then”
Features of
Contingency
Theory
Features of
Contingency
Theory
Management is situational in nature. The technique of management depends on the
complexity of the situation. Thus, managerial actions depend upon the environmental
circumstances.
It is the “if” and “then” approach to management, “if” represents the independent
variable and “then” represents the dependent management variable or the technique to be
adopted in that situation.
It provides insight into organization’s adaptability to both internal and external
environment. It is the matter of fitting the internal environment to its external environment.
Features of
Contingency
Theory
It is an integration of different school of thought; classical, behavioural and system approach. It
integrates the principles of different school of thought and applies then contingent upon the
needs of the situation.
It is pragmatic in nature as solution to every problem is found after analyzing the situation.
It is adaptive in nature. It does not presume a pre-designed structure of the organization but
adopts a structure that helps the organization adapt to the environment.
It helps to devise motivational and leadership approaches to motivate the workers. Autocratic
style maybe adopted to deal with unskilled workers and participative style to deal with skilled
workers.
Fred Edward Fiedler
The Fiedler Contingency Model was created in the mid-1960s
by Fred Fiedler,a scientist who studied the personality and
characteristics of leaders. The model states that there is no one best
style of leadership. Instead, a leader's effectiveness is based on the
situation.
Fiedler’s Contingency Theory
There are two important factors in Fiedler’s
Contingency Theory: leadership style and
situational favorableness.
Leadership Style Situational Favorableness Identify your Leadership Style
Understand your Situation
Find the Right Leadership Style
7 Habits of
Highly Effective By: Stephen R. Covey
People
The 7 Habits of Highly Effective
People embody many of the
fundamental principles of human
effectiveness. These habits are basic;
they are primary. They represent the
internalization of correct principles
upon which enduring happiness and
success are based.
The main idea: Develop your character
to become more effective in
life. Develop yourself and grow as a
person.
The Inside-Out Approach:
Your Character Matters Most
“Inside-out” means to start first with self; even more
fundamentally, to start with the most inside part of
self – with your paradigms, your character, and your
motives.
The inside-out approach says that private victories
precede public victories, that making and keeping
promises to ourselves precedes making and keeping
promises to others. It says it is futile … to try to
improve relationships with others before improving
ourselves. Inside-out means to start first with self.
The seven habits of highly effective people delineate the
leader/managers must be able to see the desired outcome of
the organization and to achieve in the end. A leader always
think a win-win decision for his/her organization to
achieve based on the shared effort from the people in the
organization and to have a win-win solutions for all. A
good leader/manager is to be proactive that they will control
their own environment in internal or external situation.
-Wendy Faye Barazan
The article about seven habits of highly effective People
depicts that one's perspective will greatly affect on how
he/she will foresee the future. In managing an
organization, a leader serves as the master of the
organization's fate. Looking and focusing on problems
rather than the solution will somehow weaken its growth.
In that sense, Contingency planning is very important
in an organization where the plan consists on
identifying the internal and external factors that
might challenged the organization in the long run.
SWOT analysis has been very helpful in many cases
where environmental and internal constraints will be
identified taken into account.
-Gezeil O. Mahinay
7 habits of highly effective people simply tells us that in
leading an organization/company it is important that
when we strategize our way of handling our people it is
important that we have a contingency plan and that we should
also identify the internal and external factors that can affect
the performance of the group.
- Gerryca Isabelle T. Maagad
I’ve learned that an effective paradigm becomes indeed
effective if it’s aligned with the principle we live with. On the
other hand, what we do-contemplates our behavior towards
an effective result. That’s fundamentally important
towards becoming a highly effective leader. Understanding
the Maturity Continuum makes it more comprehensive thru
the different stages of progression moving from dependence to
interdependence.
- Lord Saver D. Centina
