Another contemporary management perspective is contingency theory, a management approach that focuses on adapting management behavior to the particular circumstances of the organization and to each given situation. This view¬point differs from the "one best way" that the classical management theorists sought because they assumed that management principles are universal, or applicable in all cases, regardless of the organization's unique circumstances. Of course, most of the classical management theorists didn't intend their principles to be fixed and all-encompassing; recall that Fayol, for one, regarded his principles as general guidelines rather than rigid rules. In the 1950s and 1960s, the research of Joan Woodward, Paul Lawrence, Jay Lorsch, and others revealed that managers act differently depending on the environment, the technology used by the organization, and other factors. Far from rejecting the management perspectives of the past, the contingency theorists embrace any and all appropriate principles that enable managers to manage more effectively.
Regardless of the organizational structure or the obstacles and opportunities they encounter, managers have some leeway in the choices they make and in the actions they initiate. Although some functions such as finance and accounting necessarily operate according to preset rules, managers do have the choice of acting in a variety of ways to achieve the organizational goals, and contingency theory recognizes this individuality. In particular, theorists have applied contingency theory to management problems of leadership, decision making, organization change, employee motivation, human resource management, and organization structure. As a result, managers have a new set of techniques to try, including participative work groups and situational leadership styles. Although critics recognize the benefits of fitting management principles to individual situations, they also argue that contingency theory provides no useful generalizations for managers to apply.
Regardless of the organizational structure or the obstacles and opportunities they encounter, managers have some leeway in the choices they make and in the actions they initiate. Although some functions such as finance and accounting necessarily operate according to preset rules, managers do have the choice of acting in a variety of ways to achieve the organizational goals, and contingency theory recognizes this individuality. In particular, theorists have applied contingency theory to management problems of leadership, decision making, organization change, employee motivation, human resource management, and organization structure. As a result, managers have a new set of techniques to try, including participative work groups and situational leadership styles. Although critics recognize the benefits of fitting management principles to individual situations, they also argue that contingency theory provides no useful generalizations for managers to apply.
