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Contingency Approach Kunal

The contingency approach is an extension of the systems approach that believes there is no single management action that will suit all situations. Rather, the appropriate action depends on the external environment and internal conditions. Under this approach, organizational actions must be contingent on and integrated with external factors, and the relationship between an organization and its environment means no action can be universally applied in every case. However, the contingency approach has limitations in its lack of literature on specific actions for different situations, complexity in practice, difficulty empirically testing due to many factors, and reactive rather than proactive nature.

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Kunal Thakor
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609 views4 pages

Contingency Approach Kunal

The contingency approach is an extension of the systems approach that believes there is no single management action that will suit all situations. Rather, the appropriate action depends on the external environment and internal conditions. Under this approach, organizational actions must be contingent on and integrated with external factors, and the relationship between an organization and its environment means no action can be universally applied in every case. However, the contingency approach has limitations in its lack of literature on specific actions for different situations, complexity in practice, difficulty empirically testing due to many factors, and reactive rather than proactive nature.

Uploaded by

Kunal Thakor
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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CONTINGENCY APPROACH

It is an extension of system approach. The main idea of contingency approach is that there cannot be a particular management action which will be suitable for all situations. Rather an appropriate action is one which is designed on the basis of external environment and internal states and needs.

FEATURES OF CONTINGENCY APPROACH


Management action is contingent on certain action outside the system or subsystem as case may be. Organisational action should be based on the behavior of action outside the system so that organisation should be integrated with environment. Because of specific organisation- environment relationship, no action can be universal. It varies from situation to situation.

LIMITATIONS OF CONTINGENCY APPROACH


1. Inadequate Literature: It suffers inadequately of literature. It has not adequately spelled out various types of actions which can be taken under different situations. 2. Complex: when put into practice this becomes very complex. There is a possibility that managers, who are always short of time may ignore the thorough analysis of these variables and may resort to shortcut.

3. Difficult Empirical Testing: The methodology for empirical testing is available but because of involvement of too many factors, testing becomes difficult. 4. Reactive not Proactive: It is reactive in nature. It merely suggests what managers can do in a given situation..

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