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briefly define key terms first – whose theory are you discussing and what are its elements? (2) Routineness of task technology Depending on the type of technology (routine or non-routine) the organisational structure, leadership style and control systems will differ. This will be discussed in greater detail in later chapters. (3) Environmental uncertainty What works in a stable environment may not work or be totally inappropriate in a rapidly changing and unpredictable environment. (4) Individual differences. ifferences are important when managers select motivation techniques, leadership styles and job designs. Body of management thought, based on the premises that there is no single best way to manage because every situation and every manager is different. Therefore, there are only a few universal management principles, and an appropriate management style depends on the demands of a particular situation. See also classical school of management, quantitative school of management, and systems school of management.
Fayol – theorist – Fayol’s 14 principles then and now Management style that changes according to the situation, and the type of decision to be made between autocratic, consultative, democratic and other styles. See alsocontingency school of management. Contingency theory is a behavioral theory that claims that there is no single best way to design organizational structures. The best way of organizing e. g. a company, is, however, contingent upon the internal and external situation of the company.
The contingency approach to organizational design tailors the design of the company to the sources of environmental uncertainties faced by the organization. The point is to design an organizational structure that can handle uncertainties in the environment effectively and efficiently. Therefore, previous theories such as Weber’s theory of bureaucracy and Taylor’s scientific management approach sometimes fail because they neglect that effective management styles and organizational structures are influenced by various aspects of the environment: the contingency factors.
Therefore, there can not be ONE optimal organizational design for every company, because no companies are completely similar, and because every company faces its own set of unique environmental contingencies that result in different levels of environmental uncertainties. Contingency theory has historically sought to develop generalizations about the formal structures that would fit the use of different technologies. This focus was put forward by Joan Woodward (1958), who argued that technologies directly determine organizational attributes such as span of control, centralization of authority, and the formalization of rules and procedures.
Theorists such as P. R. Lawrence and J. W. Lorsch found that companies operating in less stable environments operated more effectively, if the organizational structure was less formalized, more decentralized and more reliant on mutual adjustment between various departments in the company. Likewise, companies in uncertain environments seemed to be more effective with a greater degree of differentiation between subtasks in the organization, and when the differentiated units were heavily integrated with each other. ite at least two recent academic journal articles, Save as: student ID_surname_assignment1. doc Possible research questions are: What is a manager? What is contingency approach? How do we define its relevance today? In what way does contingency approach affect the work of the manager and how/why? Very important to address this aspect because it is worth 50 marks. The conclusion should just summarise your findings and not introduce any new material (nor quotations). * Herial Fayol’s contributions
He argued that management was an activity common to all human undertakings in business, in government, and even in the home. He stated 14 principles of management—fundamental or universal truths. * Max Weber’s contributions Weber developed a theory of authority structures and described organizational activity on the basis of authority relations. He described an ideal type of organization that he called a bureaucracy, characterized by division of labor, a clearly defined hierarchy, detailed rules and regulations, and impersonal relationships. Division of labor * Authority hierarchy * Formal selection * Formal rules and regulations * Impersonality * Career orientation * During the Hawethorne studies: Mayo’s Finding: * Behavior and sentiments are closely related. * Group influences significantly affect individual behavior. * Group standards establish individual worker output. * Money is less a factor in determining output than are group standards, group sentiments, and security.