A Comprehensive Review of the Contingency View of Management

This essay provides a comprehensive overview of the contingency view of management, highlighting its core principle that there is no one 'best way' to lead an organization. It emphasizes that the most effective course of action depends on the specific internal and external circumstances. The essay discusses the unique features of the contingency view, such as its adaptability to different contexts, the importance of considering various perspectives, and the 'if-then' approach to decision-making. It also explores how the contingency theory integrates different schools of thought, promotes multicomponent analysis, and fosters skill development among managers and workers. While acknowledging the theory's strengths in providing flexibility and adaptability, the essay also addresses its limitations, including the potential for costly and time-consuming evaluations, the lack of a definitive solution, and the challenges in accounting for all relevant factors. The essay concludes that the contingency approach offers a valuable framework for organizations to navigate diverse situations and make informed decisions based on the prevailing circumstances.

Running Head: CONTINGENCY VIEW OF MANAGEMENT
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Contingency view of Management

CONTINGENCY VIEW OF MANAGEMENT 1
The contingent view of management is accepted as a unified theory because of its basic
surmise that it does not rely on one best way to steer an organization. The number of factors
prevailing externally and internally creates certain constraints that will alter what is the
suitable method or option to lead in a particular situation. In other words, the best course of
action will be decided on the basis of the underlying situations and circumstances. The
definition itself reveals that the circumstances are contingent in nature (Heagney, 2016).
When an organization behaves in a particular manner and in response to another system that
response or manner is termed as contingent on environment. Hence a contingency view is a
view where the behaviour and characteristics of one organisation is dependent on its
relationship with the environment along with the features of other organisations and accepted.
The contingent view of management has certain features that make it unique from other
theories of management. The conditions and the techniques which are adopted by the
management will ultimately depend upon the complexity of the context (Wu et al, 2014).
Every situation is unique and the employees who are dealing with the situation may have
different perspectives and approach to solve the problem. An organisation can be handled
positively when it its flexible and adaptable to new alternatives and if it ends on positive note.
Under contingency view of management ‘if’ and ‘then’ course of action is followed. The
phase ‘If’ represents the autonomous and irregular variable and the phase ‘then’ illustrates the
dependent variable or the technique to be adopted in that situation. ‘If’ workers have robust
needs of physiological needs, ‘then’ rewards of financial nature shall be given to the
employees. Similarly, ‘If’ the needs get higher and stronger, ‘then’ non-financial key drivers
should be channelized among the organisation (Otley, 2016).
Management principles are omnipresent in nature and there is no particular style of
management. All the managerial actions depend upon the environmental opportunities and

CONTINGENCY VIEW OF MANAGEMENT 2
threats. The strengths of the organisation will eventually depend upon the external factors like
opportunities and threats. The more opportunities are available the better decision making can
be done as the options will be numerous. It develops an understanding to regulate the
chequered nature of organisations and enables them to operate under variant environmental
conditions. The solutions are evaluated based on the conditions in the environment (Wolf,
and Floyd, 2017). Same solution can be solved by utilising different alternatives and there are
certain times where the numerous problems can be solved by the similar kind of solutions. It
provides a greater insight and perspective about the environment and the prevailing forces
that can be either useful or futile in nature. Combining the internal and the external
environment will provide the better opportunities. After analysing the features a deep analysis
of assessment and evaluation of how contingency view of management is operated in put
forward.
Contingency theory of management becomes functional and profitable for practising
managers through the integration of the schools, behavioural schemes and structure. It
incorporates the beliefs and rules of schools and implements them after calculating the
situation’s overview. It becomes prudent in nature when the problem is analysed carefully
(Certo, 2018). Under this view of management multicomponent analysis is undertaken. An
in-depth evaluation and analysis of the situation is done with the team of experts. They
provide opinions and ideas which can be adapted easily. This way the employees do not feel
left out. There suggestions are taken and given a thought of consideration. They form the
perception from the scratch. It enables the organisation to fit itself within the environment.
The designing of the structure is analysed and a planning of how decision systems will
operate. It depends upon the structure of their organisation whether it follows the method of
centralisation or decentralisation. A large organisation would require delegation of work

CONTINGENCY VIEW OF MANAGEMENT 3
whereas a small can adopt the centralised procedures (Dentchev, Balen, and Haezendonck,
2015). Contingent view of management also allows the managers and the workers to nourish
their skills and individual and collective goals. Motivational and leadership policies are
devised to encourage the workers. Timely completion of work would attract necessary
incentives which can motivate and ensure the productivity of the work from the employee’s
side. Different styles are formed on how to deal with the worker. The autocratic style can be
infused for unskilled workers and motivating style can be followed for skilled ones (Reuber,
Fischer, and Coviello, 2016). Therefore, it is considered as the unifying theory which is
equally possible and adaptable by different level of organisations.
Not a single system can be applicable therefore how contingency view of management is
applied and analysed here. For all kind of challenges in business management the
contingency view of management believes in evaluating all the possible options. To handle
workplace concerns and matters and provide client with equal satisfaction the needs are
deeply analysed. This means it requires a full course of action plan (Anderson et al, 2018).
The employees are assigned tasks on the basis of the skills they possess; they are directed to
develop the situational strategies and policies to meet targets, and combining these efforts.
Managers only deals with challenges and risks under the contingency approach. A single
approach to solve a problem is not a right solution to rely upon. After analysing completely it
can be found that a particular situation can be handled in various ways depending upon the
characteristics and nature of the problem. At times the problem might have been solved by
that particular method, later on due to certain changes in the environment the situation
required deeper thinking and examination therefore, and employees should not rely on a
particular method to solve a particular problem. Employees should align different approaches
and figure out the suitability and existence of the same. It is important to assign the right task
to right employee under the contingency model. This is the responsibility of the manager

CONTINGENCY VIEW OF MANAGEMENT 4
which gradually elevates the pressure to ensure that the given tasks are accomplished on time.
If any project fails to fulfil the deadline or project gets out righted the organisation questions
the ability of the manager in assigning the roles. A loop of failed projects can place a
manager in the situation of jeopardy. In contingency approach to management, irrespective of
its size, the employees are directed towards the assurance of the client’s needs and meeting
the organisation goals along with the individual ones (Kock, Heising, and Gemünden, 2016).
Under this model if employees are given freedom to plan and make decisions it will
eventually reduce the efficiency and effectiveness of the organisation. For achieving the
success the roles and jobs assigned shall not be disorganised until it is required by the
company. Otherwise the quality gets hindered and behaviour of the employees cannot be
controlled.
With the positive traits of this contingent view of management there are certain negative
aspects as well even after having the best, the contingency theory is not free from certain
limitations and drawbacks. Contingency theory is prone to certain limitations which are
discussed below. The experts claim that principle of universality is not followed when there
are specific management situations (Coleman, Kugler, and Chatman, 2017). Contingency
theory was given a direction and favour by Fayol also in which he also deliberately explained
the importance of flexibility. Henceforth nothing is unique currently as compared to previous
theory. The trait which fits best under this model is its flexibility. The conditions across the
globe and in market, the variety in workers and multiple stages protect and grace the
philosophy of contingency. The current dynamics are studied carefully and proceedings are
understood before implementing (Kroll, 2015).
The definite solution cannot be provided permanently therefore the choice of evaluating the
options at times can be costly and time consuming. The theoretical foundation is missing

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upon which management principles form the base. Not all the factors can be determined by
the managers while making decisions because of shortage of time, the lack of information
about the factors prevailing in the market, the ability to collect the information and make an
in-depth analysis (Budney et al, 2015). Besides, it becomes impossible to build a perfect
relationship among all the factors and situations. Therefore it becomes cumbersome to apply
the theory and take the decisions based on available information. These criticisms are not of
practical nature and fail to contribute in the development of organisation if applied rationally.
It can be concluded from the above discussion that organisations have to deal with numerous
situations in numerous ways. It is the basic theme of the organisation. The contingency
accession to managing and planning innovative ideas taking into consideration the climate,
characteristics and the interdependent relationship between performance and its key drivers.
This theory provides the flexibility in working under critical situations which other theories
fail to do so. Most of the organisations believe that if they follow same pattern of solving the
problems it would reduce cost save time and moreover that would help them in maintain the
brand value because they get too use to these policies. Contingency theory on the contrary
provides the guideline on what circumstances the organisation shall take the decision and
helps in deciding the spectrum that will best fit the situations.

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