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The contingency approach to management emphasizes that :

AThere is one best way to manage

BManagerial actions depend on situational factors

CEmployees must always follow rules

DScientific management principles

Answer:

B. Managerial actions depend on situational factors

Read Explanation:

Contingency Approach in Management

  • The contingency approach, also known as the situational approach, posits that there is no single best way to manage an organization.

  • Effective management practices are contingent upon, or depend on, the specific internal and external circumstances (situational factors) faced by the organization.

  • Key situational factors that influence management decisions include:

    • Organizational size: Larger organizations may require more formal structures than smaller ones.

    • Technology: The type of technology used can dictate the structure and processes.

    • Environment: The stability or dynamism of the external environment (e.g., market competition, economic conditions) influences strategic choices.

    • People: The skills, attitudes, and expectations of employees affect management styles.

    • Tasks: The nature of the work being done (routine vs. non-routine) influences how it should be managed.

  • This approach moves away from universal principles and advocates for a flexible, adaptive management style.

  • Managers must diagnose the situation and choose the management techniques and organizational structures that best fit those particular circumstances.

  • Historical Context: Developed in the 1960s and 1970s by researchers like Fred Fiedler, Joan Woodward, and Paul Lawrence, it emerged as a response to the limitations of earlier universal theories like Scientific Management and Administrative Management.

  • Exam Relevance: Understanding the contingency approach is crucial for competitive exams as it highlights the importance of adaptability and context-specific decision-making in management. It often contrasts with universalistic theories, requiring candidates to differentiate between them.


Related Questions:

Which statement is true about leadership style according to Fiedler’s Contingency Theory?

Consider the following statements regarding further critiques by Argyris, Barnard, and Subramaniam:

  1. Classical theory neglects informal processes, treating organizations as closed systems static to external environments.

  2. Argyris highlighted incongruence between mature personality needs and classical structures, fostering passivity at lower levels.

  3. It displays a pro-management bias by focusing solely on operational issues beyond management problems.

Consider the following statements about Simon's categories of administrative behavior research:

  1. One category focuses on Weberian bureaucracy, while another examines human relations for job satisfaction and productivity.

  2. The Barnard-Simon model explains organizational equilibrium via interrelationships of participant motivations for survival and growth.

  3. Decision-making research emphasizes rational components but overlooks cognitive processes in administrative behavior.

Consider the statements Regarding Chris Argyris's Immaturity-Maturity Theory:

I. Progression from dependence to independence is a key indicator of maturity development.

II. A mature individual typically exhibits short-term perspectives in their professional interests.

III. A basic incongruence exists between mature personality needs and the requirements of a classical organization structure.

Which of the following is correct?

Which of the following statements about Luther Gulick and Lyndall Urwick’s POSDCORB framework are correct?

  1. POSDCORB emphasizes functions like Planning, Organizing, Staffing, Directing, Coordinating, Reporting, and Budgeting.

  2. It implies the principle of Unity of Command, ensuring each employee reports to only one supervisor.

  3. It focuses exclusively on the human element and employee motivation in organizations.