Contingency Theory “Contingency theory is a class of behavioral theory claiming that there is no best way to organize a corporation, lead a company, or make decisions” (Pfeffer, 1997). There is no simple or one right way to run things. In the 1950’s and 1960’s, two men named Henri Fayrol and Frederick Taylor continued the study of contingency theory. Research in the 1970’s dealt with the organizational structures and leadership styles for different situations (Thompson, 2005). Contingency theory was started by Joan Woodward, whose company research found that different types of processes were linked to different structures and amounts of control. She said that certain organizational forms are appropriate for certain forms of work. Woodward …show more content…
The first of these key components is the environmental factor. The next factor is the organizational factor. The environment is bound to change and have an impact on how an organization is run. For example, when FedEx Express went through the September 11, 2001 situation, they boosted security throughout the hub and raised shipping prices to offset the security budget. The same can be said when the president created the new cabinet of Homeland Security to fight the 9/11 attacks. The United States needed a contingency plan to deal with terroristic threats to our nation both within our borders and beyond. Stability in an environment will define how long an organization will …show more content…
The economy plays in the part of how money is made. The turnover ration plays a role for hiring and layoffs. An organization can not run productively understaffed. Therefore, there can be no set way to run a business according to the books. The third factor is the leadership factor. Contingency as it relates to a business falls under leadership. The types of leadership in place greatly affect the success or failure of any contingency plan that is established. Having someone who is not liked or respected can create chaos and negatively impact an organization. The right people need to be in the right positions. Leadership styles differ as they impact the work group. The ways employees connect to the leader are important. If the employees do not like or trust the leader, this can impact the outcome of the job and create future hurdles. If you work for someone, you have to be able to relate to him or her. There has to be a formal relationship in order for the formal authority to be respected. Traits of a good leader are trustworthiness, respectfulness, honesty, and be stern. When you have leaders that take their role seriously, you can form a backbone to an organization that cannot be broken. You have born leaders and you have trained leaders. Martin Luther King was a natural born leader for the Civil Rights movement. King saw there was something that needed to be changed and he took the steps to change the world. The born leaders need no
(Schermerhorn, 2012) defines Contingency thinking, “Recognizes that management practices must be tailored to fit the exact nature of each situation” (p.6). The research suggests that Trader Joe’s management is very formulaic in their approaches from defining and maintaining company culture to site location and advertising methods. Daft, R. L. (2015) States, The idea behind contingency theories is that leaders can analyze their behavior to improve leadership effectiveness” (p.17).
Both man-made and natural disasters are often devastating, resource draining and disruptive. Having a basic plan ready for these types of disaster events is key to the success of executing and implementing, as well as assessing the aftermath. There are many different ways to create an emergency operations plan (EOP) to encompass a natural and/or man-made disaster, including following the six stage planning process, collection of information, and identification of threats and hazards. The most important aspect of the US emergency management system in preparing for, mitigating, and responding to man-made and natural disasters is the creation, implementation and assessment of a community’s EOP.
Situational leadership is a theory which was designed in 1969 by Paul Hersey and Ken Blanchard. The “contingency theories of leadership” states that a leader’s effectiveness is dependent on their behaviours in relation to different situational factors. Thus, situational leadership theory, relates to how a leader 's effectiveness is depend on their ability to adjust their leadership behaviour to the required level of the “followers” capability or if the situation is modified.
2) “Attitude reflects leadership, captain”. That shows that Julius is satisfied by the way his captain is thinking. Managerial leadership has influenced organizational activities in many ways. These influences include motivating subordinates, budgeting scarce resources, and serving as a source of communication. We are referring to the LPC contingency theory. "The first and perhaps most popular, situational theory to be advanced was the ‘Contingency Theory of Leadership Effectiveness' developed by Fred E. Fiedler" (Bedeian, Glueck 504). This theory explains that group performance is a result of interaction. (Online reviews)
When creating a CMP (Crisis Management Plan) it has to be strategic depending on what type of crisis it is. "The response to the onset of a crisis depends on the nature of the event" (Crandall, Parnell, Spillan, 2013). If my facility has hazardous materials in storage for future use when manufacturing our products I would be proactive, not reactive and address the potential issue up front before any of the hazardous materials were distributed. I would start by getting with my PR/CMP team to come up with a plan on how we will compensate our customers first. Customers should always be the first to be thought of.
Compare and contrast the management theories of Frederick Taylor, Henri Fayol, Elton Mayo, and Douglas McGregor. In what sense(s) are these theories similar and/or compatible? In what sense(s) are these theories dissimilar and/or incompatible? How would a contingency theorist reconcile the points of dissimilarity and/or incompatibility between these approaches? The twentieth century has brought in a number of management theories which have helped shape our view of management in the present business environment.
In this theory leadership style changes as needed to ensure that the goal is achieved (Huber, 2014). Each situation may need to be addressed differently, which requires flexibility by all involved, especially leadership. Managers need to evaluate every individual to understand what they are capable of and how they fit the needs of the institution and or situation (Nash, 2015). As a nurse I think this is a very important trait for a leader to have because of how quickly things change and how we must work within our environment. For example, in healthcare we sometimes have to allow others to take control of a situation on to ensure the best possible outcome for each patient. In addition, the manager needs to ensure that each person works within the scope of their practice, functions at the highest level allowed and completes their tasks. To be a successful leader in healthcare and achieve desired outcomes requires a high level of flexibility by leadership. I would also say that the contingency theory would also fit into my leadership style. The basis premise of this theory is that each situation is different and leadership needs to take that into account when managing a situation (Huber, 2014). At times a leader needs to look at the bigger picture and incorporate that in their decision making process. When looking at a specific situation taking input from all parties involved can lead to a more effective solution. We can learn a lot form those around us and need to take that in account to be an effective
Environment is another significant factor that affects the strategic plan. When a major environmental disaster occurs, such as a hurricane, it can affect a company’s production facilities, their sales facilities and the community that the company serves.
Conclusion Overall, the consequences of not having a Disaster Recovery and Business Continuity Plan can become costly in the event of a disaster. Most companies will find themselves in financial disarray when having to rebuild and/or replace any portions of the IT infrastructure that were destroyed during a disaster event. Hence, companies invest in insurance to cover such costs; however, there must be a balance because even with insurance an organization may still incur high expenses. Having a good disaster recovery and business continuity plan will keep your company up and running through any kind of interruptions such as power failures, IT system crashes, natural or man-made disasters, supply chain/vendor problems and more.
In order to fully understand the concept of a contingency plan, there are a few aspects which need to be explored. We must first define what a contingency plan is, followed by an explanation of why contingency plans are so valuable. Furthermore, an analysis of the implementation of contingency plans should be performed. Lastly, a comparison of such plans from other industries should be done, in order to comprehend the differences in both purpose and criteria.
In management, each of the four functions, planning, organizing, leading, and controlling, are crucial to the development of any business. Involving employees in the planning process help them understand the goals of the organization. Planning is analyzing a situation, determining the goals that will be pursued, and deciding in advance the actions needed to pursue the goals. This paper will evaluate the planning function of the Halliburton Company and analyze the impact that legal issues, ethics, and corporate social responsibilities have on management planning along with examples of each, and analyze three factors that influence strategic, tactical, operational, and contingency planning.
Some situations may work in one of the business may actually fail to work in others situations. Each situation demands the best leadership styles to be employed in the firm. There are various business styles which need to be applied in different business situations. The situation in a business is normally having a greater effect on a leader actions which he or she takes as opposed to the personal traits possessed. This is due to the fact that, while personalities may have an inspiring firmness over a period of time, they have slight reliability across business situations. This makes some scholars to argue that process theory of leadership is better than the trait theory of leadership. In most cases, power in the business is misused and this leads to negative impacts to the business and those
Since the end of the 19th century, when factory manufacturing became widespread and the size of organisations increased, people have been looking for ways to motivate employees and improve productivity. A need for management ideas arise which lead to classical contributors such as Frederick Taylor and Henri Fayol generating management theories such as Taylor’ Scientific Management and Fayol’s Administrative Management. In the late 1920’s and early 1930’s the Hawthorne studies were conducted where Elton Mayo was the predominate figure and contributed to the Behavioural viewpoint. This brought about a Human Relations Movement which included Douglas McGregor’s Theory X and Theory Y approach. Similarities and differences can be found between the theories due to the relevant time period they were implemented, the motives or goal of the theory and how they view organisations. However the use of contingency theory can help negate the dissimilarities which occur as it allows the relevant elements from each theory to be applied to specific situations.
Consequently, the most important object to learn is that external factors, coupled with the internal environment factors have a decisive impact on the functioning of the organization. All factors are closely twisted and affect each other. The manager should be able to analyze all these factors together and without losing any of the mind and make the right
There are many different types of theories on leadership. There is Fiedler’s contingency theory, situational theories of leadership and House’s path-goal theory. These theories are used to make an individual or manager a more effective leader. They can be used as a guide for individuals and help them achieve whatever goal is set out by their organization or group.