Contingency approach of management

Contingency approach of management puts more concern on the changing circumstance, internal and external, formal and informal, thus it provides the opportunities to have to comprehensive over-view on the situation, and helps the management to choose appropriate actions adapting to or affecting environment. “The contingency approach advocates selecting a management response from among various alternatives, based on the characteristics of the specific situation. It holds that the key to becoming a successful manager is the ability to diagnose a situation correctly.

According to the contingency approach, the nature of the organization’s environment, its size, its technology, the character of its markets, its legal charter, its personnel, and other factors not only confront the organization with problems but simultaneously offer opportunities. Thus organizations should adapt to situations. The contingency approach holds that different kinds of structures, rewards systems, and change strategies are appropriate responses to different situations.

Another advantage of using the contingency approach comes from the recognition that an organization’s environment is constantly changing.

Managers must recognize and adapt to the changes occurring both inside and outside the organization. O14” Contingency approach suggests adapting different structure and system of management to the situations, but just as it stated, ‘no best suitable’ model, even the contingency approach itself. This approach over emphasised on viability, while without taking many attention on the costs of managerial activities and system stability:

The continual shifting among different structure and system of management will be time consuming and costly. Since organization participators develop their vested benefits throughout the management stage, and they will also tend to protect it form being reduced or rejected by changing circumstance.

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When a project team work is being carried out, department manager may worry about his appointed departmental tasks, thus hesitate to promote staff’s involvement. The managerial level then has to spend time on smoothing conflicts and integrating cooperation.

One reason may bring about different situations. For instance, job dissatisfaction, work delay or bad performance can all be caused by only a wrong managerial decision. Concentrating on the ‘improvement methods’ of those different situations may mislead the manager to take ‘appropriate’ actions (like job reallocation or coercive commanding), while forgetting the root problems. Unfortunately, his management modification can also greatly impact the stability of original system. Stability, as my point of view, is one of the basic elements which ensure the system to work effectively.

As stated by Vecchio, ‘the contingency approach emphasis on ‘it depends’, however, this does not mean to be evasive, but assuming that there is numerous of important dependencies and acknowledges that the statement of managerial behaviour must also be complex O15′. A good structure and system of management must be evaluated by both effectiveness and efficiency. On the base of its inherent stable formation, it should not only be adapted to a considerable wide range of variability (which can be forecasted by the company’s experience or expectancy), but also has the capacity of adapting to certain appropriate structure and system of management.