Within a fast-paced unpredictable economy, organizations must be able to keep up with demand and be capable of reacting quickly to change. Managers are at the forefront of the success or failure of a company’s fitness to effectively adjust to change. Therefore, it is extremely important for managers to study the history of management, understand different management theories and to apply them appropriately depending on the organization, the mission and the situation. Flexibility is one of the greatest traits a manager can possess in an extremely competitive market. One management theory that subscribes to flexibility is the contingency management theory. Adaptability is crucial in today’s business environment, especially for organizations trying to remain significant in global industries. All management theories offer ways to effectively run a company, but the contingency management theory is one of the most relevant in running a successful organization in the 21st century.
The contingency management theory centers on a manager’s ability to adapt to challenging conditions. Managers who subscribe to this theory will use their training, experience and gut checks to decide on the proper course of action based on the variable or situation they face (Plunkett, Allen & Attner, 2013). They believe that the old adage of “one size fits all” does not apply in business like other management theories suggest. In fact, managers who follow the contingency management theory are
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.
For effective survival in the industry, adaptability is an essential component for every organization. Every organization should change according to the external environment and influences. In adaptable organizations, employees are given more freedom in decision-making process. The management also sets broad goals and objectives. Learning is a continual process in adaptable organizations. Change in general refers that an act of making something innovative. Organizations have learnt that change is ultimately a necessary component to survive in business.
The basic idea underlying the contingency view is that there is no one set way to organize. Managers should analzie there situations well because what work for someone else may not work for them. They need to identify patterns and characteristics and find a stable solution
Similar to the change management approach, the contingency approach has many different variations. For instance, one of these approaches is categorized into the following four ideal types: commanding (change intervention, directed by leadership and is typically driven by the need to implement quickly and abruptly), engineering (change agent, who also acts as an analyst implements the change along with those who designing the change to process and systems), teaching (third party consultants work with internal staff to assist with identify new ways of operation and is change intervention that is a long-term plan), and socializing (democratic approach that is a gradual change process approach) (Huy, 2001). Each of these approaches are acceptable but may not all work in every type of situation. For instance, within the British Airways case study, it seems as though the project team chose to utilize the commanding approach for the implementation of the swipe cards. The check-in staff were completely resistant to not only the swipe card change but were also resistant to the actual approach taken to implement that change.
Businesses continually adapt to a changing environment to maintain their market position (Appelbaum, Habashy, Malo, & Shafiq, 2012; Biedenbacha & Soumlderholma, 2008). Change is inevitable considering the current rate of technological advancement and the growth in global competition (Appelbaum et al., 2012; Armenakis & Harris, 2009; By, 2007). Increasing competition and the need for strategic flexibility and globalization is affecting almost every organization today, regardless of size, market, focus, and so on (Jaros, 2010).
The contingency theory of leadership works to predict which style is best in which circumstance, because what may work in one situation, may not work in another. Imagine that as a CEO, Helena always applied a democratic based leadership style, but one day the company was faced with a dilemma that she had to address immediately. Without the ability to consult her employees, Helena has to make a decision, and this will affect the entire company. This would be an example of the contingency theory of leadership, being able to change ones leadership style to suite the situation.
When discussing adapting to change management the organization must consider implementation of core competencies that are new and innovative. These challenges faced by the organizations require agility and a shift in strategic congruence that strengthens market adaptation. As business strategies transition, capabilities within functional departments must evolve as operational strategies are implemented.
The approach is appropriate when the,” Third, the main focus of contingency approaches is on the specific style of leadership, matched to the scale of required change, rather than on a specific set of change action steps.’ (Akin, Dunford, & Palmer, 2009
I believe there are a lot of strengths of contingency management for substance abuse. In my opinion, it is important to find the proper management approach that fits the client’s needs. There are four areas in which contingency management uses to analysis behavior: Specification of a target behavior, analysis of the current environmental events that control the behavior, modification of current environmental events and measurement of behavior change (Thombs & Osborn, 2013, p. 147). This is crucial to find the proper management approach. The approaches are designed to assist clients with managing their behavior. According to our text, there are five types of approaches which are “(1) establish and maintain controlled drinking; (2) initiate and maintain abstinence and encourage the adoption of recovery behaviors (taking an Antabuse [disulfiram] tablet, attending AA each day, etc.); (3) promote positive change in a client’s vocational, recreational, social, and familial functioning; (4) reduce cocaine and other illicit
Contingency Theory of Leadership posits that successful leaders must be highly adaptable, adjusting their leadership style in accordance with both internal and external factors. If leadership insists on clinging to outdated, ineffectual strategies, failure is virtually imminent. (DuBrin 2013) For instance, for years, management at Abbott County was either oblivious to or unmoved by the rapid innovation and advancement that was implemented at facilities around the country. This lack
Although contingency management has yielded impressive short term results, more research is needed to obtain convincing long term results and evidence that will support the notion that this treatment can sustain long term beneficial results for those with substance abuse issues. There have been issues with patient relapse, particularly in the case of smoking addiction and schemes should be developed in order to combat these relapses and create a more effective intervention programme (Higgins, Silverman and Heil, 2008). More public knowledge is also needed about contingency management as an intervention for addiction as it is not as well-known as other drug counselling or addiction treatments/centres. If more knowledge is distributed about reinforcement and contingency methods, more substance users may come forward for treatment.
Compare and contrast the management theories of Frederick Taylor, Henri Fayol, Elton Mayo and Douglas McGregor. In what sense(s) are these theories similar and/or compatible? In what sense(s) are these theories dissimilar and/or incompatible? How would a contingency theorist reconcile the points of dissimilarity and/or incompatibility between these approaches?
With the support of relevant examples, examine the development of management theories and how these theories may affect the management practices in PRIMARK:
Thus, strategy changes are inevitable in all organizations leading to structure and designing changes. Along with the changing policies the theories of organizational behaviour keep evolving. Hence we have traditional classical theories on one hand while modern contingency approaches on other hand. In this essay, I will explore and discuss classical and contingency theories along with their contributions and limitations with the help of contemporary organizational practices of businesses like McDonalds and Walgreen. The conclusion will be the result of evaluation of various theories and thus answering the question which is the best structure and designing approach for an organization?