Simple or complex control and coordination mechanisms? The contingency approach to management (also called the situational approach) assumes that there is no universal answer to such questions because organisations, people, and situations vary and change over time. Neither of these approaches could claim universal applications in the real world situations. For instance appropriate rewards leading to high productivity must be based on the analysis of the situation. Contingency approach to management is an important modem approach. The contingency approach builds upon this perspective by following in detail on the nature of relationships existing between these parts. Adoption of this approach can be useful in the formulation of strategies, design of effective organisations, planning information systems, establishing communication and control systems, shaping motivational and leadership approaches, resolving conflicts, managing change, etc. For example, they point out that even classical theorists like Fayol cautioned that management principles require flexible application. Historically, contingency theory has sought to formulate broad generalizations about the formal structures that are typically associated with or best fit the use of different technologies. This theory may not be applicable to all managerial issues. Several contingency approaches were developed concurrently in the late 1960s. They must continually address themselves with the question- which method will work best here? Contingency School of Management is a trend of management thought, which is based on the premises that there is no single best way to manage because every situation and every manager is different. We looked at limited and partial views of inputs and outputs of our systems. it allows managers to change the policies according to the situation. Features of Contingency Approach 3. (A) True (B) False Answer : (B) 22. Table 1. Managers with a contingency view use a flexible approach, draw on a variety of theories and experiences, and evaluate many options as they solve problems. The appropriate management actions and approaches depend on the situation. Contingency theory attempts to analyse and understand these interrelationships with a view towards taking the specific managerial actions necessary to deal with the issue. It varies from situation to situation. Although some might view that we do not manage disasters, there is an overlap between the contribution of management theory and emergency management. The contingency theory, on the other hand, is concerned with achieving a ‘fit’ between organisation and its environment. A business organisation is now regarded as an open and adaptive system which alone can cope with the increasing complexity and changing environmental influences. Hence, we cannot have universal principles of organisation and management appropriate to all situations-and in all envi­ronments. Therefore, managers are responsible to manage the environment in such a way that they avoid the undesirable aspects of environment. Frederick Taylor . There are many definitions of leadership. (1) Spells out the relationship of organisation to its environment clearly. 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