Contingency Theories of Management

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Contingency Theories of Management

Managers in the contemporary business environment are faced with an increasing need to maintain an effective approach that would enable them to solve emerging issues in the process of conducting corporate affairs. While this level of responsiveness increases as the business environment becomes dynamic, managers have to maintain consistency during decision making and following appropriate theories of management. On the same note, leaders are faced with an equal magnitude of responsibility in moving the agenda of the corporate world to a sustainable level. More often than not, theories form the basis for guiding the actions in a corporate set-up; therefore, leaders and manager should understand the contingency theories literature as well as the practical purpose during their daily operations.

Luthans & Stewart (1977) look at the contingency theories as a set of management approaches that are dependent on behavior and situation being faced by an organization. As such, the way business affairs are conducted will rely on the dominant factors that both the firm and the human resource face. Leaders and manager will, therefore, practice a high level of flexibility during the administration to accommodate varying circumstance. To reinforce the importance of the existence of contingency theories, Luthans & Stewart (1977) argue that two aspects determine effective running of group wellbeing; the circumstance controlling how the business resources interact and the relational motivation which determines the willingness of the leaders and managers to accomplish various tasks.

The literature in the management field has evolved over time and with an increased requirement to have a prompt management style, the contribution in the field keeps expanding. The general contingency theory (GCT) offers a framework which can guide the managers in bridging the gap between the theoretical perspective and the applicable methods which can be used to fecundate business affairs. As such, management theory does not provide specific levels of commitment that leaders and managers should adopt to achieve desired objectives. However, according to Luthans & Stewart (1977), a general...