Contingency Theory: An Overview of Its Use In Management Essay

There have been numerous theories surrounding leadership, which attempt to explain which form is most effective in the workplace. A universalistic approach was once used to rationalize leadership and it was believed that successful leaders possessed certain common abilities and traits. However, today due to external factors such as globalization and advanced technologies, there has been an evolution towards a new paradigm of leadership. Subordinates want to feel empowered and engaged at the workplace and often the behaviors and relationships between leaders and their subordinates become important to understand in order to fully understand effective leadership. Contingency theories have been developed in which people began to look at the behavior of leaders in specific situations. Two such contingency theories are: Path-Goal and Hershey and Blanchard’s Situational Theory.

I strongly believe that a leader must be adaptable to the situation and therefore prefer the Contingency theories. I shall therefore use two contingency theories to illustrate my ability to fulfil key responsibilities of my leadership role.

The contingency approach, founded in the 1970’s differs from the behavioral approach. “Examining various situational variables is central to understanding leadership in organizations, according to the contingency theorist” (Stojkovic, Klofas & Kalinich, 2012). Fiedler’s Contingency Model is one of those contingency theories.

The contingency model developed by Fiedler is based on the foundation that a meticulous leadership style is most effective in opposed situations. The key element would be to outline which leadership style needs to be used in what situations.

3) Contingency approach to leadership-this theory refers to the group atmosphere and to the degree of confidence, loyalty, and attraction the followers feel about their leader. If certain favourable situations occur then there has been a positive relationship between the followers and the leader which means that the task was clearly defined and there is a clear leader position power.

The qualitative risk analysis performed in a previous report identified eight notable risks associated with setting up a call-center presence in Québec, Canada. As those risks are successfully managed, the call center will commence operation and start handling telephonic insurance requests from mostly French-speaking customers. (Only one-quarter of employees at this center will handle English-speaking calls from Canadian customers.)

The Contingency theory, developed in 1950s, argues that there is no 'one best way ' to structure an organization and we face different possibilities when determining how it should be structured and how it should be managed. Successful organizations adopt structures that are an appropriate response to a number of variables, or contingencies (Enoch, 2006).

Anita is facing the challenge of increasing revenue and decreasing expenses. She is up against an external components with the economy, as well as internal components (employee morale). She needs to do a thorough analysis of all opportunities and threats, as well as the strengths and weaknesses of the current strategy. Basically, Anita needs to rework her strategy. Her plans must consist of what the consumers want, in order to keep the business thriving. The strategic planning retreat should be used to establish a contingency theory. This forces the analysis of “interaction between the organization and its environment” (Lester & Parnell, 2006, p. 2-5). Additionally, a strategy is more effective when the organization’s mission, competitive factors, and resources. She needs to use this

The contingency model of leadership is based upon the relationship between three aspects of leader-follower-situation model. Apart from this contingency model, leaders are assumed to act in a flexible manner.

Earlier readings defined the perspectives of both rational and natural systems, which are now added to the discussion of open systems. “Rational and natural system perspectives have not been superseded by open system, but updated, elaborated, and combined” (Scott and Davis, 2007, p. 107). Scott’s Layered Model also proposes “that the rational and natural systems models developed prior to the 1960s shared in common the fact of being layered under closed system assumptions” (Scott and Davis, 2007, p. 110-111). Lawrence and Lorsch’s Contingency theory argues there are many organizational forms, no one is ideal, and “their stability is determined by the goodness of fit between organizational form and the diverse environment to which they relate” (Scott and Davis, 2007, p. 108). The environment drives design decisions, rates of change, limitations, and opportunities for organizations according to Contingency

In contrast to the VRIN framework, contingency theory focuses on EA 's environment and the types of opportunities and threats that the company should adapt to. The key to contingency theory is that EA scan for first-mover opportunities as well as mitigate potential risks in order to maintain its competitive advantage. EA 's greatest opportunity is the increasing international demand for cosmetics within developing regions. Using the contingency theory, EA should respond by widening its geographic presence through expansion of its distribution channels. In relation to the VRIN framework, EA should also respond by leveraging its brand equity as a VRIN resource to access preferred distribution channels by engaging in new joint ventures, acquisitions, and

The first comprehensive contingency model for leadership was developed by Fred Fiedler. The Fiedler contingency model proposed that effective group performance depended upon properly matching the leader’s style and the amount of control and influence in the situation. The model was based on the premise that a certain leadership style would be most effective in different types of situations. The keys were:

Both the Contingency and the Resource Dependence Paradigms play a vital role in business. Though they have similarities, the also have differences. The following essay will describe these components.

Appreciate the different management theory and practice from the era of scientific management to contingency theory.

Operational management processes in a firm involves overseeing, formulating and reformulation of the operations of a business. The processes are meant to ensure efficiency in administering resources whilst ensuring there is effective management of client’s specifications and or directions. This is achieved by adding value to the firm’s processes. Such achievements are experienced when a firm embarks in directing its physical and or technical functions towards enhancing its development, production and manufacturing. These should be pre-determined and controlled by market opportunities if a company is to reach its ultimate production levels. Their realisation adds up to ensuring the future of a firm, offering operational