Contingency Theory Analysis

Running head: CONTINGENCY THEORY ANALYSIS
CONTINGENCY THEORY ANALYSIS
Name of the Student
Name of the University
Author Note

1CONTINGENCY THEORY ANALYSIS
Introduction:
The focuses of the essay is on exploring Contingency Theory and its key features. The
most important focus of the study is towards understanding how Human Relations Theory and
Classical Theory are incorporated within the Contingency Theory. The essay is going to cover
different theories such as Contingency theory, Classical Theory and Human relations theory. It
will discuss findings from Burns and Stalker, Frederick Taylor’s scientific management, Max
Weber with his Bureaucratic management, Henri Fayol with his administrative principles
approach and Elton Mayo research contribution of the Hawthorne studies.
The first paragraph is focused on discussing the key features related to the contingency
theory. The second paragraph is focused towards discussing the incorporation of the classic
theory within the contingency theory. The last paragraph is focused towards
The stance taken for the essay is that Contingency Theory effectively incorporates both
Human Relations and Classical approach.
The key features of Contingency theory
The contingency theory emphasizes that a single theory of organization cannot be applicable in
all organizational contexts. However, theories such as the Classical and human relations theory
have their place in the contingency theories as per the environmental conditions are affecting a
given organization at a given time. Hence, the main focus of the contingency theory is on the
ever changing role of organizational management in view of the various situations that affects
the organization (Otley, 2016). Effective management “depends” in a number of contingency
variables. Some of the important variables that were identified were relationship between leader
and member, task structure degree and position and power of the leader. The contingency model
can effectively enhance the prospects of technology, distributors and suppliers, consumers,

2CONTINGENCY THEORY ANALYSIS
competitors, government and unions. The findings of Burns and Stalker identified two forms of
management practices in the organizations; Mechanistic and Organic. Mechanistic organizations
tend to be highly centralized with formal procedures. The functions are specialized for the
employees. In these organizations rapid change become much challenging to implement. One
such organization is the Monash University. In the university the roles of the management are set
and the regulation is centralized. The university has a higher management that makes most of the
important decisions concerning the operations. Organic organizational environments tend to be
flat. Communications tend to be horizontal in nature. The specialization in these organizations
tend to be low. Moreover, knowledge is utilized in accordance of its contextual requirements. An
important aspect is the decentralization of the systems. Apple’s decentralization system is an
important example of this type of system. The decentralized system of Apple is focused towards
low specialization and uses the same to create cross-specialization. As a result the same
department of the organization can undertake various separate functions. Both set of
organizational setups can be used in accordance of the best fit concerning the functional
environment of a given company.
Incorporation of the classical theory within the contingency theory
Mechanistic organizations from Contingency theories are linked to organisational
systems advocated by classical theories. The classical theorists have focused on the basic needs
of the workforces to form the organizational systems that would govern productivity (Craig &
Campbell, 2012). The theory is based on the assumptions of the physical and emotional needs of
the workers. In accordance with the same mechanistic organizational setups have high
formalization and centralization. The organizations using mechanistic frameworks are more rigid
in their productivity orientation. Frederick Taylor, the father of the scientific management
provided the notion that the management is concerned with improving the labor and productivity
towards improving economic efficiency. The idea is to improve the functional effectiveness of