Contingency Theory: Classical and Human Relations in Management

This essay delves into Contingency Theory, examining its core features and how it integrates both Classical and Human Relations approaches. The analysis begins by outlining the key aspects of Contingency Theory, emphasizing its relativistic approach to management and the importance of adapting organizational structures to fit specific environmental conditions. It then explores how Classical Theory, with its focus on mechanistic organizational structures and principles of scientific management from figures like Frederick Taylor and Max Weber, is incorporated. Furthermore, the essay discusses the incorporation of Human Relations Theory, highlighting the significance of employee relationships and motivational factors, as demonstrated by Elton Mayo's Hawthorne studies, within the Contingency Theory framework. The essay uses real-world examples, such as Monash University, Apple, McDonalds, Delta Airlines, Nucor steel and Google to illustrate the application of these theories in various organizational contexts, concluding that both Classical and Human Relations theories have their place within Contingency Theory based on the specific environmental and organizational circumstances.

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

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the production processes. The mechanistic design is greatly utilized in organizations like
McDonalds. The organization uses a systematic centralized system for productivity. The
specialization of division helps to maintain the functional effectiveness. As per the scientific
theory the organization bases production activities upon logic, rationality, work ethic and
elimination of wastage. Max Weber’s bureaucratic management theory puts forward two
important elements. Firstly, the structuring of an organization on the basis of hierarchy.
Secondly, governing the workers in accordance with rational and legal decision making rules.
This relates to the contingency theory as consideration of leadership behaviors and initiating
structures are both essential aspects of this approach. Delta airlines has a distinct hierarchy that
provides guidance to its workers by building an effective framework dependent on legal -rational
decision making factors. Henri Fayol provided the administrative principles approach. The main
objectives in focus in the theory are division of work, authority, unity of command, discipline,
unity of direction, subordination, centralization, scalar chain, order, tenure stability equity,
initiative and moral boosting. Nucor steel utilizes this theory as it dilutes this to form the P-O-L-
C framework (Nucor Corporation, 2019). This means planning organizing leading and
controlling. The organization uses a centralized system for production which involves a chain
order starting from procurement of resources and treating of the steel.
Incorporation of the Human Relations theory within the Contingency theory
Organic organisations from Contingency theories are designed based on the philosophies of
the human relations approach. Human relations approach is based on the assumption that people
need to actively participate in the support functions of the organizations. Development and
support are important factors that govern this. The human relations theory is connected with the
Contingency theory as both rely on developing significant relationships with the workers (Noe et
al., 2017). The Hawthorne studies by Elton Mayo considered the workers at the Hawthrone plant
in the 1920s. It focused on finding out whether building comfortable workplaces can create more
productive workforces. It was discovered that the additional attention from the managers greatly
motivated the workers towards performing better (Busse & Warner, 2017). The social issues
were found to be very important for the performances of the workforces. The employees were

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highly productive when most or all of their motivational needs in the organization were met. In
this case the leader-member relationships, the task structure, the power and position of the leader
are all incorporated within the human relationship theory (Khorasani & Almasifard, 2017). This
signifies that the theory itself is incorporated within the contingency theory. The human
relationship theory applies to contingency theory in cases where the performances of the workers
become intrinsically connected with the organizational performances. Thus, the factors that
enhance productivity of the organizations are improved due to the interplay between the two
theories. Google Corporation is a great example of organic organizations based on the
philosophy that employees are the most important resource of a company. In Google the
employees are empowered more to innovate and participate. The organization provides facilities
like free health checkups, gyms, Nap pads, videogames and even free dry cleaning (About |
Google, 2019).
Conclusion:
Both the Classical theory and the Human Relations Theory have their place in the Contingency
Theories based on the appropriate environmental and organizational circumstances. With regards
to the classical theory the aspects of contingency such as the degree of task structures are
effectively enhanced. In regards to the human relations theory the leader member relationship are
more integrated into the theory. Many challenges have been faced by earlier theories of
management are still faced by managers today. These challenges include globalization and
diversity affecting the workforces, changing demands of the organizational employees, the
growth in employee attrition due to better opportunities and lack of skills or skills development
procedures.

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