Wednesday, October 27, 2010


The contingency theory was developed by managers, consultant and researcher who tried to apply the theories and principles of the major schools to real life situation.It is based on the nation that proper management techniques in a given situation depends upon the nature and condition of that situation approach. This theory doesn't accept any single method of management.this theory believes that there may be different forms of management according to the situation.According to this theory the form of management is affected by the elements such as size,nature, situation, challenges etc of the business organization.This theory strongly maintains that there is not only one best way to solve the problems. It believes in 'no one best way to do things.The external environment elements remain out of the control of organization and they also cant be easily forecast.So the principle of management cant be equally applied in any and every situation.Different organization should use various ways to study problems, analyze and solve the problems according to the situation. this theory teaches to bring the principle of management in practice according to time and situation for the achievement of organizational goals.
  • Contingency theory is practical and it is equally important for every organization.
  • Contingency theory doesn't believe in 'one best way' so many methods and principles may be used in management om an organization according to time and situation. LIMITATION
  • Every situation is unique so manager may not be able to analyze each and every situation.
  • It is difficult to identify relevant contingency variable and determine their interrelationship.
  • More human resources and financial resources is needed to scan the situation


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