Contingency approachmanagement perspective:

thetechnical definition

of the word

“contingency”

• dependence on chance or on the fulfillment of a condition; uncertainty; fortuitousness.

• a contingent event; a chance, accident, or possibility conditional on something uncertain.

• something incidental to a thing.

http://dictionary.reference.com/browse/contingency

contingency

thinkers of the contingency approach

• Fred Fiedler (1922- )• Joan Woodward (1916-1971)

• James D. Thompson

"Different technologies imposed different kinds of demands, and these demands had to met through an appropriate structure. Commercially successful firms seemed to be those in which function and form were complementary.”

--Joan WoodwardOrganizational Sociology professor

“Organizations that experience similar technological problems will engage in similar behavior.”

--James D. Thompson

“Both low-LPC (task-oriented) and high-LPC (relationship-oriented) leaders can be effective if their leadership orientation fits the situation..”

--Fred Fiedlerbusiness and management psychologist

The Contingency Approach

The situational favorableness determined by:Leader-Member Relations, referring to the degree of

mutual trust, respect and confidence between the leader and the subordinates.

Task Structure, referring to the extent to which group tasks are clear and structured.

Leader Position Power, referring to the power inherent in the leader's position itself.

The Least Preferred Coworker (LPC) Scale

Unfriendly 1 2 3 4 5 6 7 8 FriendlyUncooperative 1 2 3 4 5 6 7 8 Cooperative Hostile 1 2 3 4 5 6 7 8 Supportive

.... 1 2 3 4 5 6 7 8 ....Guarded 1 2 3 4 5 6 7 8 Open

Contingency Approach Overview

managers are faced with the task of determining which managerial approach is likely to be most effective in a given situation.

Contingency Approach Overview

recognizes the need to understand situational differences and respond appropriately

Contingency Approach Overview

recognition of the extreme importance of individual manager performance in any given situation

Contingency Approach Overview

the effectiveness of various managerial practices, styles, techniques, and functions will vary according to the particular circumstances of the situation

Contingency Approach Overview

In other words, it follows the “it depends” philosophy.

Examples ofcontingency

plansin a company

Credits:• http://www.introduction-to-management.24xls.com/en131• http://www.cliffsnotes.com/study_guide/Contingency-School-

of-Management.topicArticleId-8944,articleId-8854.html• http://en.wikipedia.org/wiki/Fiedler_contingency_model• http://www.eurocontrol.int/ses/gallery/content/public/image

s/ses/contingency-process.jpg