Choose one case study and analyze Managerial implications of contingency approach
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As you refine your organizational structure, you will have to review your managerial philosophy to determine its effectiveness. One popular strategy is to implement the contingency theory of management, which is premised on the idea that there are multiple ways for managers to make decisions in an organization based on different factors. In other words, the contingency theory of management requires flexibility on the part of your managers to evaluate each situation and make decisions unique to those situations. Applying the contingency theory of management requires managers to stay alert and avoid relying on rules, policies and tradition as the only guides for their choices. To improve productivity and employee morale, managers must understand the importance of contingency theory and its positive implications at the workplace. Show
Provides Solutions in Specific SituationsUsing a contingency management style, managers can respond to the causes of individual problems rather than overreacting to the problem itself. Instead of focusing on the results of the problem, managers who understand the importance of contingency theory will seek to understand all of the influences that led to the problem. For example, a warehouse manager dealing with the problem of decreasing efficiency as it relates to loading and unloading goods may look closer and realize that the lack of proper ventilation is causing warehouse workers to tire quickly and need to take frequent breaks. Had the manager simply relied on motivation theories as an automatic response to productivity problems, he might not have missed the real culprit for the decrease in production. Allows a Macro View of the OrganizationThe importance of contingency theory also extends to the way managers think about the consequences of a decision as it relates to the entire company. A manager’s actions must reflect the culture, commitment to employee safety and well being, profit orientation, branding positioning and customer service attitudes of the entire organization. The contingency management style forces managers to make decisions and resolve problems based on how it will impact the company, not solely how it will affect a division or department. For example, let’s say a manager discovers the research and development division of a company is months behind on perfecting a new product. Using the contingent management style, that manager wouldn’t publicize this problem to the entire company; instead, he would work closely with the R&D leaders to identify the sources of the delay and fix them. Publicizing the problems in R&D could lead to a decrease in employee morale, especially in the sales and marketing departments that are working diligently on strategies to promote that product. Increases Managerial DiscretionOne of the other major implications of the contingency theory for managers is that it provides them with far greater discretion. Whether you have a top-down or a flat organizational structure, your managers are a linchpin of implementing decisions and ensuring that your employees remain committed to specific goals. Because the contingency theory gives managers a wide range of ways to react to problems, it also gives them significant discretion in their decision-making. Business owners who implement contingency theory must allow their managers to bend policy or even override it if the circumstances demand it. Managers must embrace the agile thinking that is required to effectively use contingency theory in the workplace. That means managers must interpret policies and regulations loosely, yet still adhere to the company’s values and visions when they make decisions. While you may balk at giving your managers this type of discretion, remember that contingency theory is all about adapting to changing circumstances without adopting a one-size-fits-all approach. Business owners often find that giving managers this type of freedom results in increased confidence in decision-making as well as managers who feel empowered and trusted to do their jobs without needing constant approval. journal article The Academy of Management Journal Vol. 31, No. 4 (Dec., 1988) , pp. 828-853 (26 pages) Published By: Academy of Management https://doi.org/10.2307/256341 https://www.jstor.org/stable/256341 Abstract This study focused on what is perhaps the most critical aspect of strategy implementation in large, multibusiness organizations: recognizing that different business units within the same corporation often pursue different strategies and that the administrative mechanisms that corporate headquarters use to manage those businesses should differ. This study compared the results of bivariate and systems approaches to fit. Implications of the results for theory development and managerial practice are discussed. Journal Information The Academy of Management Journal presents cutting edge research that provides readers with a forecast for new management thoughts and techniques. All articles published in the journal must make a strong empirical and/or theoretical contribution. All empirical methods including (but not limited to) qualitative, quantitative, or combination methods are represented. Articles published in the journal are clearly relevant to management theory and practice and identify both a compelling practical management issue and a strong theoretical framework for addressing it. For more than 40 years the journal has been recognized as indispensable reading for management scholars. The journal has been cited in such forums as The Wall Street Journal, The New York Times, The Economist and The Washington Post. The journal is published six times per year with a circulation of 15,000. Publisher Information The Academy of Management (the Academy; AOM) is a leading professional association for scholars dedicated to creating and disseminating knowledge about management and organizations. The Academy's central mission is to enhance the profession of management by advancing the scholarship of management and enriching the professional development of its members. The Academy is also committed to shaping the future of management research and education. Founded in 1936, the Academy of Management is the oldest and largest scholarly management association in the world. Today, the Academy is the professional home for more than 18290 members from 103 nations. Membership in the Academy is open to all individuals who find value in belonging. Rights & Usage This item is part of a JSTOR Collection. What is an example of contingency approach to management?Effective motivation and leadership are the best examples of the contingency approach to management. Management variables such as management process, organisation structure, organisational behaviour, management style, management control are dependent variables.
What are the implications of the contingency theory for managers?Because the contingency theory gives managers a wide range of ways to react to problems, it also gives them significant discretion in their decision-making. Business owners who implement contingency theory must allow their managers to bend policy or even override it if the circumstances demand it.
What is the contingency approach of modern management explain with an example discuss the implication and merits & demerits of contingency approach?The contingency approach, often called the Situational Approach is based upon the premise that all management is essentially situational in nature. All decisions by managers will be affected (if not controlled) by the contingencies of a given situation. There is no one good way to address any decision.
What is the contingency approach to the study of management?A contingency approach to management is based on the theory that management effectiveness is contingent, or dependent, upon the interplay between the application of management behaviors and specific situations. In other words, the way you manage should change depending on the circumstances.
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