Contingency Theory and its Application in Real World Management

This presentation explores the application of contingency theory in real world management scenarios. It discusses the strengths and weaknesses of classical, neoclassical, and institutional management theories, and provides evidence through interview transcriptions and thematic analysis. The research approach used is interpretivist, and the study is conducted in the setting of convenience stores.

Management Theory
and Practice
Student’s name
Professor’s name
Course title
Institution
Date

Introduction
 Management and organization is vital in all corners of the globe.
 The circumstances or situations in the lives of people present them
with instances that necessitate prompt and proficient management
(Hill, Jones and Schilling, 2014).
 This means that management is a core feature in the day to day
experiences of individuals and entities.
 The process of management and organization requires application of
relevant knowledge, experience and expertise.
 As such, theories and concepts have been developed over the course
of time to inform the nature of management (Seitel, 2017).

Introduction
 Theories have been established through observation, collection of
information, questioning and experimentation of a phenomenon.
 The theories are based on practical situations in the real world
(Bratton and Gold 2017).
 They are in many cases applicable to real life scenarios.
 Development of theories also includes generalization which raises a
point of concern.
 Theories do not fit every practical situation.
 This introduces a contradictory aspect to the conversation (Heizer
2016).

Figure 1: Management Theories

Theme and Rationale
 The main theme of study revolves around eventuality of
circumstances.
 Future occurrences are built around uncertainties.
 The events cannot be predicted with absolute certainty.
 Flexibility is vital in the application and utilization of management
frameworks and theories for different situations as the future unfolds.
 The contingency theory is a rational way of ensuring each situation is
managed with the suitable framework (Hill, Jones and Schilling,
2014).

Cont’d
 This theory is significant given the different situations that have
required appropriate management during my work experience.
 A vital aspect in internships and jobs is the management of a team or
group of other interns/employees.
 Factors that determine the type of management for a particular
situation are organization culture, job specifications and hierarchies.
 Other elements are workplace relationships, environment and
structure of organization involved.
 Contingency theory is based on Carlisle Management Concepts and
Situations (Bratton and Gold 2017).

Cont’d
 Contingency is appropriate as it considers the internal and external
environments of organizations.
 The study is conducted in the setting of convenience stores.
 The stores provide different perspectives internally and externally
that can be used to base the utilization of the theory in real life.
 The elements of the theory and components of the convenience
stores are analyzed, compared and contrasted (Heizer 2016).

Structure
 Presentation of real world of management is initiated with definition
of a specific management theory and its application of the in real life.
 The theory is explained in its wholeness including pros and cons.
 Other management theories are also mentioned.
 Evidence of the theory is displayed through transcription of interview.
 Critical commentary is vital in the structure to gain full insight on the
theoretical and practical nature of management.

Research Approach
 The research approach that will be used is the interpretivist
philosophy.
 This approach requires use of interpretation by researchers.
 It is mainly based on social constructions.
 The approach is associated with idealism.
 The approach is more subjective than objective.

Literature Review
 Good theories and concepts display good fit in relation to practical
situations (Bratton and Gold, 2017).
 Bad theories do not fit their application in real world cases.
 The theories in management and organization include classical,
neoclassical and institutional theories.
 Other theories are modern theories, systems approach and
contingency theory.
 Real life situations provide basis for critical analysis of the theories
(Shafritz et al, 2015).

Contingency Theory
 This is also called situational theory.
 Organizations have structures that match the environment for success to
be enhanced.
 Management depends on the nature of situation presented.
 The environment presents the circumstances which determine the kind of
managerial action.
 Flexibility is applied as no particular style of management fits all situations.
 It is critical for organizations to mesh their internal and external
environments.
 Focus is on organizations thriving in varying environmental conditions
(Otley, 2016).

Contingency Theory
 Different solutions work for different situations.
 Different frameworks are utilized to manage situations as dictated by
conditions of the environment.
 The solutions of a problem vary from to time or may be the same for
different problems.
 The management in real world situations and in the theory both
embrace the utilization of different approaches.
 Aspects of behavioural, systems and classical management styles
make contingency potent and viable (Maxwell and Chmiel, 2015).

Contingency Theory
 The contingency theory is more practical in nature.
 Solutions of problems are found after sufficient analysis of
circumstances.
 Business decisions in the stores are made after the environment is
carefully assessed.
 Dire circumstances require the full attention of the management.
 Their full control and directives are not very necessary when work
proceeds normally.
 This displays the use of different management styles as fits the
situation (Binder 2016).

Contingency Theory
 Adaptability is an important factor.
 Use of preset structures make organizations more affiliated to
particular circumstances.
 This brings about rigidity which affects adaptability to environments.
 The stores sites and the contingency theory show the adaptability of
management to different environments optimizes the outcomes.
 Adaptability is a major contributing factor in the success of
management in different conditions (Jones et al 2016).

Contingency Theory
 Management is more effective when different forms are applied to
different groups of people.
 In the convenience stores, unskilled and skilled workers are managed
in different ways.
 There is more participative style management with skilled workers
and more autocracy with unskilled workers.
 The management method helps in development of motivational
factors for workers through leadership approaches.
 This type of management helps get the most out of workers in given
situations (Jones et al 2016).

Figure 1: Contingency Theory Model

Figure 2: Contingency Theory Model

Other Theories
 There are other management theories in use.
 The theories are utilized in structured settings of organizations with
well prescribed roles.
 The main aim of the theories is to help achieve goals and objectives
of an organization.
 Theories are mainly classified under classical management theories,
neo-classical and systems.

Classical Management Theories
 Classical management theories put more emphasis on structure.
 Physical and economic needs of workers are vital.
 There is specialization of labor and centralization of leadership and
decision making.
 The main goal of the classical theories is to streamline organizational
operations and increase productivity.
 The ideal workplace has hierarchical structure and incentives are
offered to members of a given organization (Kregel 2017).

Cont’d
 Strengths of classical management include the clarity in structure of
management, also comprising operations and functions.
 The division of labor eases tasks and responsibilities.
 This increases productivity and efficiency in the workplace.
 Tasks and responsibilities are clearly defined.
 Weaknesses of the management model entail the disregard for
human relations.
 The theory does not acknowledge human factors among employees
such as job satisfaction and morale.
 There is overreliance on previously gained capabilities and
experience (Peet and Hartwick 2015).

Neoclassical Management Theory
 This theory includes behavioral perspective in management.
 The organization functions as a social system while including the
implications brought about by the actions of humans (Kregel 2017).
 The theory has lesser formal settings thus lesser control in
management.
 There is more participation in process of decision-making.
 Workers are treated as humans and part of team. Their feelings and
aspirations are regarded in the theory (Hersey et al 2007).
 Rewards, albeit not economical, are vital in motivation of workers.

Cont’d
 Neoclassical theory covers some ground in integration of sociology,
psychology and behavioral science in management.
 Advantages of the theory are treatment of employees as human
beings and democratic elements.
 Informal relationships can be established between different
stakeholders across an organization.
 Disadvantages associated with the theory are potential for group
conflict, issues concerning remuneration, job details or goals.
 The situation may also be lead to lower productivity when
problematic factors persist (Peet and Hartwick 2015).

Figure 3: Classical and Neoclassical

Institutional Theory
 The theory is deeply embedded in the social structure.
 Vital considerations in the theory entail norms, rules and routines and
their involvement in defining social behavior.
 Institutions point out to a resilience in the social structure.
 The structures provide stability through augmentation of resources
and activities with normative, cognitive and regulative elements
(Greenwood et al 2017).

Figure 4: Management Theories

Research Approach
 The research objective is to gain deeper insight on the contingency
theory and its relation to real world situation.
 This research should help signify the connection or association
between the theoretical perspective and real world scenario.
 The research approach that is used in the research is interpretivist.
 This approach incorporates human interests.
 It is subjective in nature.
 Choices of people is based on their personal decisions rather than
particular laws (Jones and Radaelli 2016).

Cont’d
 In interpretivism, culture and way of life of people are taken into
context unlike in the case of positivism which takes a general view.
 Research that takes interpretivists’ perspective is more detailed and
has higher validity as compared to other approaches.
 This research approach is appropriate as it includes aspects of social
constructs such as consciousness and language.
 This approach is important as it helps in grouping different approaches.
 It goes against the assumption that meaning exists independent of
consciousness.
 Interpretivism and contingency theory are dependent on the
environment (Ryan 2018).

Figure 5: Positivism vs
Interpretivism

Evidence
 The research mainly involves qualitative aspect of management.
 The methodologies for collection of evidence include use of
interviews and observations.
 This research ensures high validity of data collected.
 Observation entails use visual examination to gain the necessary
evidence.
 Tools for the evidence collection are video or sound recorder and
stationery.
 Both primary and secondary sources of information are vital for the
research (Neuendorf 2016).

Analysis of Evidence
 Thematic analysis fits the scope of this research.
 This method of analysis is critical in examining and recording of
patterns.
 This helps note the themes that are similar and those that are in
contrast between real life management and the theory in question.
 Contingency theory and intepretivism both involve consideration of
different aspects.
 Thematic analysis also entails a number of different approaches
rather than a single method (Neuendorf 2016).

Interview Transcription
 Interviewee: Student
 Interviewer: Assistant Head of Store unit
 Interview setting: Company offices
 Interviewer: Good morning sir.
 Interviewee: Good morning.
 Interviewer: Straight to the point, which type management is utilized in
your convenience stores?
 Interviewee: Well, it depends with a number of factors. There is the
matter of hierarchy, particular employees or departments that are being
managed, resources available, nature of decision to be made. In some
cases, the management is mainly of the autocratic type while in other
circumstances it may be persuasive or democratic.

Cont’d
 Interviewer: What other factors affect the nature of management?
 Interviewee: Generally, people, job responsibilities and work environment
factor in the management.
 Interviewer: Is the organization keen on the impact of management type
on the performance of workers?
 Interviewee: Yes it is.
 Interviewer: So, how would you describe the management in the business?
 Interviewee: Our workplace is like a family. All employees are part of this
huge family. Therefore, the management factors in virtually all members of
the organization. The management method is inclusive of human,
economical, political and social factors. It be simply described as an
accommodating management.

Cont’d
 Interviewer: Which framework do you specifically apply in managing
people or the workplace?
 Interviewee: I would say that there is no particular framework that I
will attest to suit all the circumstances of management. The best
outcomes have been come by after careful consideration of all
relevant aspects and subsequent application of a suitable
management framework. Needless to say, different circumstances
present you with different challenges thus you should be able to
apply different methodologies or frameworks to achieve the most
desirable results.
 Interviewer: That does it for me. Thank you for your time.
 Interviewee: You are very welcome.

Critical Commentary- For
 The contingency theory takes into consideration the internal and
external environments of organizations.
 These are mainly defined by tasks and people involved.
 These aspects are also utilized in the reality of management.
 Both situations reveal a high degree of flexibility in the management
style that is applied.
 A common theme is different situations have varying suitability to
corresponding management style which should presumably be
effective.
 A crucial point is the involvement of employees in some
organizational management aspects.

Against
 The theory is majorly reactive which spells out what the managers
may be expected to do.
 The real world requires proactivity. Managers need to foster more
positive results.
 The theory involves some detailed analyses which make the
framework more complex.
 In real world, space for detailed analyses is limited as time is
essential.

Conclusion
 The theory of contingency is quite applicable in real life.
 The main aspects in the theory are very relevant in real life.
 The environments of organizations influence the needs they have and
their operations.
 The contingencies form variables that successful organizations are
able to respond to adequately due to adoption of structures to suit
the occasion.
 The flexibility is critical in thriving in any circumstances as they are
prone to change.
 Human beings are crucial in the operations of organizations. It is
therefore appropriate that they be part of management process.

References
 Binder, J. 2016. Global Project Management: communication,
collaboration and management across borders. Taylorfrancis.com
 Bovens, M., Goodin, R. E. and Schillemans, T. 2014. The Oxford
handbook public accountability.
 Bratton, J. and Gold J. 2017. Human resource management: theory
and practice.
 Geisler, E. and Wickramasinghe. 2015. books.google.com
 Greenwood, R., Oliver, C., Lawrence, T.B. and Meyer, R.E. eds.,
2017. The Sage handbook of organizational institutionalism. Sage.
 Heding, T. Knudtzen, C. F., and Bjerre, M. 2015. Brand management:
research, theory and practice. Content.taylorfrancis.com

References
 Hersey, P., Blanchard, K. H. and Johnson, D. E. 2007. doc1.lbfl.li
 Jones, T. M., Donaldson, T. Freeman, R. E. and Harrison J, S. 2016.
amr.aom.org
 Hill , C. W. L., Jones, G.R. and Schilling, M. A. 2014. Strategic
management theory: an integrated approach. Sage
 Jones, M.D. and Radaelli, C.M., 2016. The narrative policy framework’s
call for interpretivists. Critical Policy Studies, 10(1), pp.117-120.
 Kregel, J.A., 2017. Rate of profit, distribution and growth: Two views.
Routledge.
 Neuendorf, K.A., 2016. The content analysis guidebook. Sage.

References
 Peet, R. and Hartwick, E., 2015. Theories of development:
Contentions, arguments, alternatives. Guilford Publications.
 Otley, D. 2016. the contingency theory of management accounting
and control. –management accounting research, Elsevier.
 Ryan, G., 2018. Introduction to positivism, interpretivism and critical
theory. Nurse researcher, 25(4), pp.14-20.
 Seitel, F. P. 2017. Practice of Public Relations. Lib.hpu.edu.vn

Appendix
 Figure 1: Management Theories
 Figure 2: Contingency Theory. Retrieved from http://
www.free-management-ebooks.com/faqld/leadtheory-04.htm
 Figure 3: Contingency Theory Model. Fiedler, F. E. (1967). A Theory of
Leadership Effectiveness New York: McGraw-Hill
 Figure 4: Classical and Neoclassical Theories. Retrieved from Civil
Service India.
 Figure 5: Management Theories.
 Figure 6: Positivism vs. Interpretivism. Pizam and Mansfeld (2009).