Saturday, 4 February 2017

Contingency Theory

The word contingency means being dependent on a chance or possibility, an event or

The contingency theory holds that there is “no one best way” to do something. Rather, the result of achievement is dependent on the chance or conditions and risk taken.

The contingency theory applies the leadership behaviours ;
1.     Relation-oriented behaviour
2.     Task-oriented behaviour

Relation-oriented behaviour is associated with consideration. Where leaders build good rapport and interpersonal relationships and showing support and concern for subordinates.

The task-oriented behaviour is associated with initiating structure. Here; leaders provide structure, role assignment, planning, scheduling or work spaces to ensure task completing and goal attainment.

The under listed are important contingencies for companies,
·        Technology
·        Suppliers and Distributors
·        Consumer interest group
·        Customers and competitors
·        Government
·        Unions
All these contingencies are reasons for the survival of a company.

“The best way to organise depends on the nature of the environment to which the organization must relate”_ William Richard Scott.

Just like the study of economics, supply and demand. There are determinants of supply and determinants of demand. These determinants are affected by factors beyond the buyer and seller.


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