Contingency theory

Question 1

What is the contingency theory

Answer 1

There is no single approach to meeting the best out of people. It is the best fit between tasks people and the environment

Question 2

What are some factors affecting the contingency approach 7

identify them

Answer 2

• size of business
• type of business
• corporate culture

-information available

-staff available

• skill of staff
• finance available

Question 3

Whats the relevance of contingency theory to modern organisations 4

Answer 3

• managers must be flexible and decide what to do in various circumstances. They want to choose the best mix of idea and suit the situation they find themselves in

-managers need to have a wide way to react to problems. Managers must be allowed to bend policies or even over ride them. However this could create uncertainty within the workforce if managers are always changing their approach.

• giving managers freedom results in increased confidence in decison making and they feel empowered and trusted to do their jobs without constant approval.

-managers must embrace the agile thinking. However, contingency assumes managers can adapt however in reality it may not be possible due to their distinct management style.

• there is an increased competition from a rise in e-commerce sale- a flexible structure needs to be established to respond to the changing markets - adapt constantly through changing markets

-should have suitable managers for relevant areas of work- factories may go for a scientific approach whereas art may go for a more human reltions approach

Question 4

whats the advantages of the contingency plan 3

Answer 4

• it draws the best parts from methods/ theories
• there are a lot of variables taken into account such as staff, skill, technology etc
• flexible so easier to change the PESTEC environment

Question 5

what’s the disadvantages of the contingency plan 2

Answer 5

• management has to be flexible and quick to make decisions and change the style depending on situations

-organisations cant exist in isolation

Question 6

explain the factors affecting contingency plan 5

Answer 6

• staff skill- inexperienced workers may require a more directed approach then the experienced

-external environment- conditions such as recessions, may result in downsizing, which can impact the structure of the firm

• external environment- increase in online competition means they need to develop of flexible approach to respond to the changing market demands

-leadership style- match suitable managers to relevant areas of work

• nature of the work- scientific management where tasks and activities are repetitive etc

Question 7

what factors influence what management theories should be used 4

Answer 7

employees undertaking creative work - require a free reign to stop stifling
staff creativity

• manufacturing and factory work - will be suited to elements of
  autocratic/scientific leadership where tasks are routine and repetitive and
  productivity is the driving force
• where piece rate payment used - a high level of supervision is required to
  ensure products are meeting the correct standard of quality, a more
  classical leadership approach is appropriate
• service sector organisations - use a more decentralised approach to work
  planning to empower employees and delegate decision making