Examples of Contingency Approach in the following topics:
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- The contingency viewpoint is a more recent development of organizational theory that attempts to integrate a variety of management approaches by proposing that there is no one best way to organize a corporation or lead a company.
- The contingency approach claims that past theories, such as Max Weber's bureaucracy theory of management and Taylor's scientific management, are no longer practiced because they fail to recognize that management style and organizational structure are influenced by various aspects of the environment, known as contingency factors.
- Debating which one of the previous approaches to management is the "best" approach is irrelevant in contingency theory, since the heart of the contingency approach is that there is no "one best way" for managing and leading an organization.
- In this case, the contingency approach allows the employee to keep her/his job and saves the manager from going through the time and trouble to dismiss one employee and hire another.
- Therefore, the organizational structure is a major component of the approach that management may take in resolving problems under contingency theory.
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- The Vroom-Yetton-Jago model is a contingency approach to group decision making that is designed specifically to help leaders select the best approach to making decisions.
- It proposes a method for leaders to select the right approach to making a decision in a given set of circumstances.
- The Vroom-Yetton-Jago model defines five different decision approaches that a leader can use.
- The Vroom-Yetton-Jago model also provides guidance for leaders trying to determine which approach to decision making to use (AI through GII).
- This technique involves answering a series of yes or no questions and following the yes path to the recommended type of decision-making approach.
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- Theories of effective leadership include the trait, contingency, behavioral, and full-range theories.
- Experts have proposed several theories, including the trait, behavioral, contingency, and full-range models of leadership.
- According to this approach, called contingency theory, no single psychological profile or set of enduring traits links directly to effective leadership.
- In other words, contingency theory proposes that effective leadership is contingent on factors independent of an individual leader.
- In response to the early criticisms of the trait approach, theorists began to research leadership as a set of behaviors.
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- Qualitative approaches are the opposite; they rely on logical premises or past experience to generate estimates about future circumstances.
- The inherent problem with the qualitative approach is simple: subjectivity.
- While quantitative measure use data to express objective results, qualitative approaches do not have this luxury.
- Another method of forecasting, which is likely to be both quantitative and qualitative, is the causal/econometric approach.
- The practice helps businesses create plans for different situations, in addition to contingency plans for adapting if and when necessary.
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- Benchmarking can be done qualitatively or quantitatively, and it is a comparative approach to strategy.
- Contingency planning can be simply described as the back-up plan, while participatory planning is the primary plan.
- An excellent tool for strategists pursuing a particularly risky venture is to develop the primary objectives and strategy while simultaneously constructing a contingency plan that will limit the negative effects of failure.
- Incorporating concepts such as forecasting and benchmarking in conjunction with larger corporate strategy frameworks such as SMART goals and MBO will equip strategists with a strong short-term and long-term approach.
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- In 1971, Robert House introduced his version of a contingent theory of leadership known as the Path-Goal theory.
- According to House's theory, leaders' behavior is contingent upon the satisfaction, motivation, and performance of their subordinates.
- Because individual motivations and goals differ, leaders must modify their approach to fit the situation.
- House and Podsakoff attempted to summarize the behaviors and approaches of "outstanding leaders" that they obtained from some more modern theories and research findings.
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- Managers lead their organizations and can vary their style and approach to achieve the desired outcome.
- Debate is fairly common about whether the use of these terms should be restricted and generally reflects an awareness of the distinction made by Burns (1978) between "transactional" leadership (characterized by emphasis on procedures, contingent reward, management by exception) and "transformational" leadership (characterized by charisma, personal relationships, creativity).
- Some organizations have taken this approach in hopes of increasing creativity, reducing costs, or downsizing.
- A leadership style is a leader's approach towards providing direction, implementing plans, and motivating people.
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- For-profit marketers measure success in terms of a company's sales and profit; a for-profit's continued existence is contingent upon its profits.
- An organization might choose to take different approaches to messaging to consumers about goods as opposed to messaging about services.
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- This situational contingency understanding of leaderships suggests, for instance, that a leader in a strict, task-oriented workplace would have different qualities than a leader in a more open, idea-driven workplace.
- The Fiedler situational contingency model measures leadership traits with a test that provides a leadership score corresponding to the workplace where the leader would be most suited.
- Fiedler's contingency theory has drawn criticism because it implies that the only option for a mismatch of leader orientation and unfavorable situation is to change the leader.
- Also, the contingency model does not take into account the percentage of situations that might be somewhat favorable, completely unfavorable, or even extremely favorable.
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- It is often contingent on performance or results achieved.
- Variable pay is contingent on discretion, employee performance, or results achieved.