The Contingency Approach to Management

The word ‘Contingency’ refers to the immediate circumstances. The contingency approach to management, also known as the situational approach is based on the concept that there is no single best set of management principles to all organizations as every organization is unique, work in different situations and need different approaches to management.

Fred E. Fiedler

The contingency approach to management was developed by Fred E. Fiedler in 1963 (A Theory of Leadership Effectiveness, 1963).  The conceptual model of the contingency approach was developed by Kieser and Kubicek in 1983. The organization should recognize the situations of a task, the requirements of a job, and needs of the people and must develop the organization’s planning, organizing, leading, and controlling approaches according to the particular circumstances. 

Highlighting the significance of situational influences on the management of organizations, the Contingency approach questioned the proposal of a single best way to manage and challenged the classic models designed by management theorists such as Frederick Winslow Taylor (Scientific Management) and Henri Fayol (Fayolism).

The major Contingency Variables:

1. Strategy
2. Structure
3. Task
4. Individuals
5. Environment
6. Size of the organization
7. Age of the organization
8. Technology

The Contingency Theory proposes the following concepts:

1. There is no one best way to manage an organization.

2. A manager should identify the most suitable management style in a particular situation to realize the organizational goals.

3. The Contingency Theory proposed the least preferred co-worker (LPC) scale to measure a manager's leadership orientation.