GL BAJAJ INSTITUTE OF TECHNOLOGY

AND MANAGEMENT

MANAGEMENT CONCEPTS
PRESENTATION
TOPIC : THEORIES OF
MANAGEMENT

SUB TOPIC : CONTINGENCY THEORY

SUBMITTED TO: ANJALI KUSWAHA MAM
 CONCEPTS
MANAGEMENT
• Management is a process of getting
things done with the aim of achieving
goals effectively and efficiently.
• Management is essential for
all organizations big or small, profit or
nonprofit etc.
THEORIES OF
MANAGEMENT
• Management theories are the set of
general rules that guide the managers
to manage an organization.
• Theories are an explanation to assist
employees to effectively relate to the
business goals and implement effective
means to achieve the same.
 FOUNDER OF
CONTINGENCY THEORY
• The theory was developed in the 1960 by
Austrian psychologist, Professor Fred
Fiedler. He studied leader's personalities and
characteristics and came to the conclusion that
leadership style , since it is formed through
one's life experiences, is incredibly difficult,
if not possible , to change.
 CONTINGENCY
THEORY

• A contingency theory is an
organizational theory that
claims that there is no best way
to organize a corporation , to
lead a company, or to make
decisions.
• This theory is also known
as situational approach to
management theory.
 CHARACTERISTICS
• Non-universality of management theory - There is no one best way of doing things.
• Contingency - Management decision making is contingent upon the situation.
• Environment - Managerial policies and practices to be effective, must adjust to changes in
the environment.
• Diagnostics - Managers must possess and continue to improve diagnostic skills so as to
anticipate and ready for environmental changes.
• Human Relations - Managers should have sufficient human relations skills to
accommodate and stabilize change.
• Information and Communication - Managers must develop a communication system
adequate to deal with environmental changes.
 CONTINGENCY THEORY OF LEADERSHIP

• The contingency theory of leadership states that effective

leadership is contingent upon the situation at hand.
Essentially, it depends on whether an individual's leadership
style befits the situation. According to this theory, someone
can be an effective leader in one circumstance and an
ineffective leader in another.
 This model contains relationship b/w Leadership
style and favourableness of a situation

• It was described by Fiedler in terms of three emperically derived

dimensions
• LEADER-MEMBER RELATIONSHIP : It is high, if the leaders is generally
accepted and respected by followers.
• DEGREE OF TASK STRUCTURE : It is high , if the task is very structured.
• LEADER'S POSITION POWER : It is high , if a great deal of authority and
power are formally attributed to the leader's position.
 MAIN IDEAS
• Organizations are open system that needs careful
management to satisfy and balance internal needs and to
adapt environmental circumstances.
• There is no best way of organizing. The appropriate form
depends on the kind of task or on environment.
• Management must be concerned, above all else, with
achieving alignments.
 ADVANTAGES
• The primary advantages of contingency theory include:
• It provides a realistic view of management and organization.
• It discards the universal validity of principles.
• Managers are situation-oriented and not stereotyped.
• Lends itself to an innovative and creative management style.
 DISADVANTAGES
• It does not have a theoretical base.
• Executive is expected to know all the alternative courses of action before
taking action in a situation that is not always feasible.
• It does not prescribe a course of action.
• A situation can be influenced by many factors. It is difficult to analyze all
these factors.
THANK YOU