Classical management theorist Henry Fayol and Frederick Taylor identified the management principles for the success of the companies. The management thinkers believe that these approaches are flexible in nature and do not consider the environmental changes. The Research conducted in between 1960s and 1970s is based on situational factors that affected the suitable organization and the proper leadership styles depending upon different situations. The contingency perspective is applied to different aspects of management. There has been development of contingency approaches outside organization theory and leadership theory. The essay provides an insight of the contingency perspective relevant to organization theory and leadership. The contingency approach of management is based on the idea that there no one best way to manage an organization, the effective planning, organizing, lading, controlling is manage as per the needs of the organization. The contingency approach assumes that there is no universal answer to the questions related to organizational structure. It is due to the fact that the organizational structure keeps changing as per the time and the business environment. Thus it is important to evaluate the complex variety of environment to understand the environment.
The business environment is subject to change depending upon the uncertainty, work technology, and the size of a company is all identified as environmental factors. As per the contingency theory the stable environment suggests that the organization is emphasizing on centralization, formalization, standardization. Certainty and predictability allows use of rules, regulations, and measures to direct judgment making for regular purpose. The unstable business environment suggests organic structure that focuses on decentralization to achieve flexibility. The uncertainty in the organization should be dealt with high accuracy. This involves non-routine tasks and problem. The organization working in a different environment requires an effective working environment to sort out the differences. There is a greater need of coordination between the units in order to avoid differences.
The organizational size is one of the important factors impacting the effectiveness in an organization. The small sized organizations are more informal against the large sized organization. The owner of small sized organization can directly keep a check over the activities taking place in the organization. Large sized business organization has more complex environment and is based on divisional structure. The large size business organizations need to develop strategies in a manner that help in managing the organization. The customer diversity and the globalization have caused difference in the implication. The overall process of carrying out a job is different in terms of managing an organization. There are various cultural differences causing a change in overall applicability of managerial principles. The availability of support provided by the organization has an influence over the organizational growth. Economic condition in various other contingencies in the environment is the reason behind the difference in the managerial practice is due to different organizational strategies. In order to attain long term goals it is advisable to incorporate effective managerial practice through different approaches. The availability of support institutions and availability of cost financial resources is important from the point of view of the long term sustainability. Modern business organization is highly depending on the various different business practices in order to attain desired results. It is very difficult for the modern organizations to be dependent on the single business activity. There is a necessity to keep an alternate plan in order to attain desired results.
The ability to change the organization and to manage the managerial activities is now considered as a core activity by various business organizations it is reflected through number of books and articles. There is no single approach that can be use by the business organization in order to manage activities in a flexible environment. There is arguments relation to the different approach as managed by the business organizations in order to run the organization efficiently. This is one of the major purposes followed by the business organization. Large sized business organization need to deploy effective activities that will allow the organization to attain objectives. The unstable business environment suggests organic structure that focuses on decentralization to achieve flexibility. The uncertainty in the organization should be dealt with high accuracy. This involves non-routine tasks and problem. The business environment is unstable that requires proper supervision. In such a situation it is recommended that the business organizations need to imply the activities in an effective way. This is however necessary for an individual to attain efficiency by enabling results. The importance of current business scenario is to keep an alternate plan in as of contingencies. The business environment is contingent and it requires implementation of effective business plan. The success of an individual organization is largely dependent upon various contingent factors. It is important in a business organization Flexibility in business environment need to be dealt with efficiency. An organization needs to keep an alternate plan so that in case of failure of one plan they can go for another plan.
The purpose of diverse business activities is to earn desired result. the organizations are subject to change due to difference in business practices. The dynamic business activities in the environment is important from the point of viw of changes taking place in the organization. a business organization cannot exist withot incorporating changes. It is effective for a business organization to implement a model that can work efficiently in the changing business scenario
The business can be managed efctively through business practice that can be carried by opting an effective business plan. In a diversifie business it is howeer essential to develop efficient strategies so that an individual can gain the advantage . the strategic avantage can only be gained if the organization is able to develop effective business practice. There should be more acceptability between the business principles and procedure an the business activities. it is highly ecommended by the business professional to accept an activity that promotes utilization of businss activites that are wo