UNIVERSITY OF GONDARCOLLEGE OF MEDICINE AND HEALTH SCIENCES

School of Public HealthDepartment of management and economics

PRESENTATION ON: THE CONTIGENCY SCHOOL OF

THOUGHT By Azmeraw T.

Zewdi A. Tadesse G. Nigussie B.

THE CONTIGENCY SCHOOL OF THOUGHT

History of the thoughtThe contingency approach can be seen as a development of the systems approach.The starting point for contingency theory is generally recognized to be significant after researches conducted at England's Tavistock institute by Burns and stalker study (1961) and Joan Wood ward (1965).

Major contributors

1.The Burns and stalker study(1961)

From their study they distinguish The effects of the external environment on their

pattern of management and economic performance. five different kinds of environments ranging from stable

to least predictable (complex) environments. They also identified two divergent systems of

management practice and structure • The mechanistic system • The organic system which can be used

depending on the structure and stability of the organization.

2.The Lawrence and Lorsch study(1967)

• Attempted to extend the work of the Burns and Stalker

• Examined not only the over all structure but also the way

in which specific departments were organized to meet

different aspects of organizational environment.

3.The Joan Wood ward study (1965).

• The effect of technology on organizational structure was carried out.

• Her main thesis was that industrial organizations which design their formal organizational structures to fit the type of production technology they employ are likely to be commercially successful

4.The work of Charles Perrow(1970) on major dimensions of technology

• The work by wood ward was extended by Perrow

suggests that by classifying organizations according to their technology and predictability of work tasks, we should be able to predicted the most effective form of structure.

5.The peters and Waterman study

• show the relation ship between o size of an organizational subunits and o individual attitudes and behavior.

• found that in the larger subunits there appeared to be a clear negative relation ship to

o job satisfaction, o absenteeism and staff turn over, o subject to organizational insufficiency.

These pioneering efforts have refined most recently by the Aston group (a

group of researchers from the university of Aston England) in 1970

IDEOLOGYOF CONTIENGENCY SCHOOL

The classical approach Focused attention on • The formal structure• Technical requirements of the organization and • General principle of the organization. The human behavior/relation approach Focused attention on • The informal organization and • On psychological and social needs of people at work. The System view of organization and management Placed emphasis on • The socio technical approach, • The interrelationship of sub systems and • Multiple channels of interaction

IDEOLOGY con…

In contrast, the contingency approach, which can be seen as an extension of the systems approach

• suggests that a more mechanistic form of organization is more effective when

The environment is relatively simple and stable Tasks and technology are relatively routine Relatively high percentage of non professional

workers are employed.

IDEOLOGY con…

• In contrast, a less bureaucratic or more organic form of organization is likely to be more effective when

The environment is complex and dynamic, The tasks and technology are non routineRelatively high percentage of professionals are

involved.

IDEOLOGY con…

• Contingency theorists suggest that the quality of improvement function might be organized differently depending on

The environment (external Vs internal) faced by each organization

Nature of problems and outer issues being addressed

The type of employees available.

IDEOLOGY con…

The Contingency approach takes the view that there

• is no one best universal structure

• are a large number of variables or situational factors which influence organizational

• design • performance.

• It also emphasizes on the need of flexibility.

IDEOLOGY con…

• A contingent approach can be seen as a form of “If-Then” functional relation ship.

If -certain situational factors exist Then- certain variables in the organizational

structure and systems of management are most appropriate.

Fig. A Conceptual frame work for contingency model

THEN:-variables in

organizational

Structure and system

Of management

IF:-environment (situational factors)

Internal - structure, size, technology, process External -social, political/legal, technical, economic

Contributions of the contingency theory

It has provided: • a further insight in to our understanding of relation ship

among factors influencing the » structure,» management » operation of work organizations.

• Has relevance in terms of division of work coordination of activities hierarchy and definition of responsibilities method of work motivation and commitment of staff style and system of management.

Contributions con…

Help managers to develop: • a more through understanding of complex

situations • to take appropriate action .• It draws attention to the difficulties with mixed

forms of organizations • Understanding of different structures for different

activities and situation.• Helps to contribute more effective performance

through flexibility.

Criticisms or limitations

The criticisms, difficulties and limitations of the contingency

approach usually revolve around seven main issues

1.Causal relation ship:-

The nature of causal relation ship between organization

and situational factors are open to question.

Most contingency models imply a causal relation ship

between structure and performance. However, certain

factors influences performance independently of

structure .

2. Organizational performance

Organizational performance is multi faceted and the

measurement of performance applied in many of the

contingency studies has not been precise .

It is impossible to drive a single criterion for the

appropriateness of the fit among various factors

organization and improved performance .

3. Independent variables

-The statues of the “contingent” variables is open to

question.

-large organizations may be in position to exercise to

control over certain aspects of their organization.

4. Multiple contingencies

Organizations face multiple unique contingencies there is potential for multi-way relation ship among

the range of organizations there are variables which result in the need for

different pattern of structure

5.Planned change

• Contingency models of organization fail to give sufficient

emphasis to unanticipated consequences of planned

change

(e.g. introduction to new technology)

6.Power factors

• Organizational structure is not necessarily determined by

impersonal contingency conditions but also what are

referred to as “power” factor.

• The pressure of external control

Government control

political context

power of social norms, etc are Lesley

emphasized

7.Time of organizational change

• Most organizations operate under conditions of constant

change.

• There might be a change in the contingency factor

before the organization will respond.

Generally, contingency approach

It gives few clue on to how to asses the

situation

It might be difficult to asses the whole situation

Attempts to present all situational problems

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