Contingency Theory

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In the last two decades both the public and private sector organisations have experienced incredible changes in their management processes (Hassard et al 2013). Some of these changes in the world of work have been influenced by technology, demography, globalisation to name but a few. These changes are occurring at different areas and levels thus posing a challenge for the management of organisations (Burke and Cooper 2006), hence the importance of using theoretical approaches in organisational development. Organisational theories therefore can be seen as radical changes in organizational thinking based on the changes occurring in human resource management (HRM) (Hassard, et al 2013). Supporting the thinking of Suddaby et
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An organisation must put in place a set of practice and organisational mechanism if they are to perform better. They should also put in place an organisational strategic that clearly states objectives, thorough understanding of the socio-political context, their identity, mission, vision and probably the change they want to see as an organisation. The contingency theory clearly provides the direction of the organisation within a set period of time. This theory purely deals with the internal processes that moulds the organisation, this can be in a form of HR policies and strategies etc. Beh & Loo (2013) also applauded this theory by arguing that performance are maximised when HR policies and strategies are consistent with the organisational strategy. this theory also probes further into the relativity of HR systems, as different organisational strategies requires different structure and the use of technology (Lepak, Marrone, and Takeuchi (2004) The contextual paradigm examines both the organisation internal and external settings and ensures that the organisation is well situated to carry out its day to day operation (Som, 2012). This may include for example the role of the state, community ownership, labour market and trade unions. This is also backed up with lobby and adjusting to the requirement of government and dealing with legislations on equal opportunities which is a strategic role of the HR function (Jackson et al 1989). However, Baxall (1995) argues that the contingency theory is not universal as it varies from country to country. Budhwar, and Boyne (2004) also states that in some countries HR policies and strategies are determined by age, size, culture and nature of the organisation. Nonetheless, de Pablos (2005)
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