contingency approach

Contingency approach seeks to analyze a problem, and then develop the best managerial or organizational solution to it.

Buchanan & Huczynski, Organizational Behaviour (1997)

The idea of contingency approach is above all a reaction to the One Best Way approach of Taylorism. Essentially, this way of thinking holds that the appropriate solution depends on, ie. is contingent on the circumstances of the problem at the time. There are two main lines of thought within the contigency approach school:

The determinists assert a single variable such as technology, environment or company mission determines the form of an organization. Notable thinkers include:

• Joan Woodward and her theory of technological determinism, which asserts that complexity of production determines the structure -- more levels of hierarchy are needed for process production in a modern paper mill than for unit production of hand-crafted items

• James Thompson and the idea of interdependence, which states that the structure is dictated by task dependencies and the communication required between them -- hospitals requires intensive communication between employees while bank branches do not

• Charles Parrow, who determines structure based on task variety and task analyzability

• the idea of environmental determinism, which differentiates based on environmental complexity and dynamism -- a telecoms company has complex and dynamic environment, while a soft drink company does not

Then there are the strategic choice thinkers, who assert that structure is wholly a management decision, and variables like technology and the products the company produces are based on this structure; most notable is the idea of environmental strategic choice, which holds that instead of passively responding the environment changes as in environmental determinism, managers seek to change or enact their environments. When McDonalds wanted to open restaurants in Russia and found the food supply chain lacking, it didn't passively accept this; instead it built the largest food processing plant in the world to adapt the environment to its needs.

back to organizational behavior

References

Buchanan, David and Andrzej Huczynski. Organizational Behaviour, 3rd ed.