Contingency approach to management

 Ø  This theory recognizes the situational nature of management. According to this theory is based theory, management is absolutely situational. Manager practice depends upon situation. Contingency theory is based upon situation. Contingency theory is based on the nature and condition of situations. Every situation is unique, different situations demand different managerial practice. Managerial practice appropriate in one situation cannot be generalized in other situation. According to this theory, the technique of problem solving appropriate in one situation may not be applicable in other situation. There is no one best method of doing. There is no one best method of planning, organizing, directing and controlling, before managing the organization and before handling the problem. Manager must analyze, situation or conditions according to situation, he \she must apply managerial practice. This theory does not agree with universal application of management principles. Different factors affect this theory or there are 6 major contingency variables. They are: -

     1.       Size of organization

     2.       Task technology

     3.       Environmental uncertainty

     4.       Geographical spread of organization

     5.       The type of work being done

6.        Individual differences.