Contingency Approach Block B
Contingency Approach Block B
Contingency Approach Block B
THEORY
PREPARED BY: BLOCK B
TABLE OF CONTENTS
01 DEFINITION
DEFINITION 02 THEORY
03 EXAMPLE
EXAMPLE 04 SUMMARY
SUMMARY
CONTINGENCY APPROACH TO MANAGEMENT
★ style of leadership;
2. Situational favorableness
A
LEADERSHIP STYLE
0001
LEADER-MEMBER
TASK STRUCTURE POSITION POWER
RELATIONS
Control subordinates
Leader is supported Task with clear goals and through reward and
procedures punishment
by group members
Example:
A family owned pharmaceutical company, Universal Drugs, was looking to change to a more team-work
oriented management environment by promoting one of two internal employees. The newly created position gave the
new manager freedom to conduct performance reviews and report directly to the owners.
The owners can use the contingency theory to define the new role to qualify one of the applicants more than
the other. They would define the task structure aspects of the job; completing performance reviews. The importance of
relationship building through training and coaching of the employees and the ability to diffuse difficult situations is
important.
Universal Drugs can benefit from the contingency theory in the decision making by understanding that the
theory does have flaws. Those who employ this theory do not learn to change their approach to match the situation;
they change the situation to match their leadership style.
Contingency The accounting information system must be
Theory on Relation flexible enough to include environmental and
to Accounting to organizational structure in consideration.
Pharmacy
Information system must have a changeable
Management
nature to adapt to change in circumstances.
Contingency theory, a class of behavioral theory that emphasizes that there is no best way in leading and that
leadership style is effective in some situation which may not be successful in others. Leadership style is dependent
upon various internal and external constraints.
Limitations may include scope of organization, how it adjusts to its situation, variations among supplies and
operational pursuits, schemes, technologies used, etc.
CT of leadership
Success of the leader is a function of various possibilities in the form of subordinate, task, and/or group variables. The
effectivity set by the leader is dependent among the demands and needs of the situation. CT of leadership advocates
the different styles of leadership that fits to the needs created by organizational situations.
RESOURCES
Situational (Contingency) Approaches to Leadership. (2019). Openstax. Retrieved from
https://opentextbc.ca/principlesofmanagementopenstax/chapter/situational-contingency-approaches-to-leadership/
Contingency Theory Examples (Page 1) - Line.17QQ.com. (2021). Retrieved 28 April 2021, from
https://line.17qq.com/articles/sehwuqcrx.html
Management.net, �. (2021). Summary of Contingency Theory (Fiedler, Hersey, Blanchard). Abstract. Retrieved 28 April 2021, from
https://www.valuebasedmanagement.net/methods_contingency_theory.html#:~:text=Contingency%20theories%20(CT)%20are%20a,not%
20be%20successful%20in%20others
Frederick. (2016, January/March). Contingency Management of Health Care Organizations: It Depends. Retrieved May 1, 2021, from National Center
for Bioetechnology Information: https://pubmed.ncbi.nlm.nih.gov/?term=Olden+PC&cauthor_id=27892910
Team, I. E. (2020, December 4). Understanding the Contingency Theory of Leadership. Retrieved May 1, 2021, from Indeed:
https://www.indeed.com/career-advice/career-development/contingency-theory-of-leadership
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