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The Contingency Management Theory And Management Theories

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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

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