...Contingency theory is perceived by some scholars as a fragmentation of various ideals patched together into a theory of management accounting, nevertheless, it should be recognised that it provides a wealth of knowledge into contemporary management accounting practices. Contingency theory provides enhanced information to the individual which ultimately improves decision making and assists in achieving organisational objectives (Hamas and Lääts, 2002, p. 379). This theory has invaluably provided research evidence that are attributable to contemporary management accounting knowledge and designs. It has provided a profound method to adjust to ever changing external environments and the need for changes in internal factors (Otley, 1980, p. 413). Strengths of contingency theory style research Challenging the criticisms of contingency theory for being fragmentary and contradictory due to its methodological limitations, it is the failure of critiques in realising the many different forms of management accounting designs under the contingency approach and the relationships between those design which have perpetuated this idea (Gerdin and Greves, 2004, p.303). Attention should be shifted to the concepts under which contingency theory has been applied. Contingency theory in its simplest form highlights that an organisation’s structure is conditional upon contextual factors such as environment, strategy and size. One of its key strengths is a congruence approach that it represents...
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...perspective and identified contingencies, such as environmental conditions, ownership patterns, strategies, and leadership, as important in assessing the appropriate approach to use in a given situation. One attraction of the contingency approach among theorists and practitioners alike is its situational perspective. Those interested in research issues regarding organization and management can use the contingency perspective to explain why some factors influence situations in one setting but have virtually no influence in another setting. Indeed, one objective of research within the contingency framework is to specify those dimensions and conditions that do affect a situation and those that do not. For the manager, the requirement from the contingency perspective is to identify which technique will, in a particular situation, best contribute to the attainment of organizational goals. For instance, under some circumstances, an authoritarian leadership style may be more appropriate than a leadership style that tries to get workers internally motivated. While the contingency approach is useful in recognizing that the complexity involved in understanding human and organizational systems makes it difficult to develop universal principles of management, there have been several criticisms of the approach. For one, it has been pointed out that the logical extension of the contingency approach is that all situations are unique. If this is true, then management can be practiced only by...
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...Question 3 The contingency approach showed renewed concern with the importance of structure as a significant influence on organisational performance? The contingency approach believes that it is impossible to select one way of managing that works best in all situations like promoted by Taylor. Their approach is to identify the conditions of a task (scientific management school), managerial job (administrative management school) and person (human relations school) as parts of a complete management situation and attempt to integrate them all into a solution which is most appropriate for a specific circumstance. Contingency refers to the immediate (contingent or touching) circumstances. The manager has to systematically try to identify which technique or approach will be the best solution for a problem which exists in a particular circumstance or context. An example of this is the never ending problem of increasing productivity. The different experts would offer the following solutions: Behavioral scientist: create a climate which is psychologically motivating; Classical management approach: create a new incentive scheme Contingency approach: both ideas are viable and it depends on the possible fit of each solution with the goals, structure and resources of the organization. . The contingency approach may consider, for policy reasons, that an incentive scheme was not relevant. The complexity of each situation should be noted and decisions made in each individual circumstance ...
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...Administration in Canada, (pg 70) contingency theory is one of the most recent theories in organizational structure, it argues that there is no "one best way" of structuring an organization. Instead contingency theory suggests that the best way to structure a particular organization is contingent(dependent) on a number of factors such as the attitudes of the managers and employees, the nature of the task performed by the organization and the nature of the environment. The basic premise of Contingency Theory is that there is no one best way to organize a corporation, to lead a company, or to make decisions. There are too many external and internal constraints that will alter what really is the best way to lead is in a given situation. In other words, it all depends upon the situation at hand as to what will be the best course of action. An organizational / leadership / decision making style that is effective in some situations, may be not successful in other situations because organizations, people, and situations vary and change over time thus, the right thing to do depends on a complex variety of critical environmental and internal contingencies. The contingency approach to organizational design tailors the design of the company to the sources of environmental uncertainties faced by the organization. The point is to design an organizational structure that can handle uncertainties in the environment effectively and efficiently. The contingency theory approach to the study of organizations...
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...University of Management Assignment On Are job descriptions always necessary? lecturer: Auy ridelle Group 1. Mr. Kak Bunna, Number: 44501 2. Mr. Touch Sokheng, Number: 31533 3. Mr. Ratt Chak, Number: 44551 4. Mr. Sor Sophal, Number: 44505 5. Mr. Nou Ratana, Number: 44502 Discussion Questions. 1. Apply contingency theory to the practice of job descriptions. How can contingency theory explain the current situation in which some organizations use job descriptions and others choose not to use them? 2. Which contingencies might affect the use of job description? Describe a specific situation that would be favorable for the use of job descriptions. Now describe another situation that would be unfavorable for the effective use of job descriptions. 3. Do you think job description support or hinder the goal of learning organization approach? Group Discussion 1. Contingency theory is a class of behavioral theory that claims that there is no best way to organize a corporation, to lead a company, or to make decisions. Instead, the optimal course of action is contingent (dependent) upon the internal and external situation. Several contingency approaches were developed concurrently in the late 1960s. They suggested that previous theories such as Weber's bureaucracy and Taylor's scientific management had failed because they neglected that management style and organizational structure were influenced by various aspects of the environment: the contingency . CONTINGENCY...
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...of individuals and groups toward one another and toward the organization as a whole, and its effect on the organization's functioning and performance.” Evolution of Management theory Behavioral science approach This Approach focuses on the psychological and sociological processes that influence the performance of workers. This approach focuses on the workers, not the job itself. The behavioral science was influenced to a large extent by the human relations movement, namely the Hawthorne experiments (e.g. influence of lightning on performance etc.) in the 1930s. Human relations approach The human relations approach evolved in the 1960s and included research from Herzberg, Maslow, and McGregor etc. They tried to find ways to motivate employees based on their needs. 1. McGregor X and Y theory McGregor stated the XY theory of management that says that there are two types of management approaches. A type Y manager sees people as individuals with intrinsic motivation to achieve the organizational goals. Therefore the job of the manager or leader is it to facilitate this motivation and to develop a working environment to nurture that motivation. A type X manager beliefs that people are lazy and work only if they are threatened by punishment. This approach has been proven counterproductive in management because it leads to an environment of mistrust, hostility and is likely to lead to diseconomies of scale....
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...Abstract “The contingency approach to management is based on the idea that there is no one best way to manage and that to be effective, planning, organizing, leading, and controlling must be tailored to the particular circumstances faced by an organization. Managers have always asked questions such as "What is the right thing to do”? Discuss three (3) best practices for managing teams faced with significant unk-unks Planning and Triggering Contingencies Murphy’s Law says it all, “If anything can go wrong it will, no matter how great a project may be going. Because of Murphy’s Law there should always be a contingency plan put in place even when there is a lot of unk-unks taking place. A contingency plan is usually done at the beginning, but may happen in the middle of the project. When contingency planning is done right a Project Manager and team can identify certain things: such as critical activities, triggers, alternatives, roles and responsibilities. After brainstorming and the team has identified the critical activities and milestones, they will need to specify the contingency trigger. What will trigger the Project manager and team to go into plan B and implement the contingency plan that is in place? It should always have a measureable or observable component, tied to a specific time line. The trigger is an indicator that the activity is not going to be completed as planned. The action a Project manager takes at that point will either implement an alternate plan...
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...Table of Contents: Abstract 1. Introduction- statement of problem 2. Two perspectives on SHRM (i) Best Practices (ii) Best Fit 3. Best approach in different contexts 4. Summary – Google case study 5. Contingency perspective of organizational theory and Justification for application Conclusion References 1. Introduction: - This report is based on a case study of Google’s HR practices. Google Inc. is located at Mountain View, California is not simply known for its unique workplace culture but it also known for its advance innovation approach and HR programs. The HR practices at Google which are named as ‘people operations’ is intended to describe that HR is not merely an administration but rather it makes sure the strong relationship between employee and employer. The case encourages discussion on whether the company’s culture is truly emphasis on attracting and motivating the best employees or it is with a business motive. In order to present critical review of the case study , the concept of HRM as a new strategic approach to the management of people is discussed and two different approaches “best practices” and “best fit” is explained. In the end of the report, the case study is presented from “best fit” HRM perspective .Thus this case study helps us to analyze the two different HRM approaches are applied in the organizations. 2. Two perspectives on SHRM: - HRM has experienced a drastic change over the last few years....
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...What is Management? The concept of management has acquired special significance in the present competitive and complex business world. Efficient and purposeful management is absolutely essential for the survival of a business unit. Management concept is comprehensive and covers all aspects of business. In simple words, management means utilising available resources in the best possible manner and also for achieving well defined objectives. It is a distinct and dynamic process involving use of different resources for achieving well defined objectives. The resources are: men, money, materials, machines, methods and markets. These are the six basic inputs in management process (six M's of management) and the output is in the form of achievement of objectives. It is the end result of inputs and is available through efficient management process. The term 'management' is used extensively in business. It is the core or life giving element in business. We expect that a business unit should be managed efficiently. This is precisely what is done in management. Management is essential for the conduct of business activity in an orderly manner. It is a vital function concerned with all aspects of working of an enterprise. Definitions of Management 1. According to George R. Terry, "Management is a distinct process consisting of planning, organising, actuating and controlling, performed to determine and accomplish stated objectives by the use of human beings and other resources"...
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...Starting back from the late 1800s to the 1960s there was a search for solutions for the development of four major approaches to management, classic approach, behavioral approach, systems approach and contingency approach; according to Evolution of Management. Scientists have been visually examining the demeanor of employees and managers due to collaboration between individuals and machines, inexperienced in running superior size factories, and the greater the business the more problems came with it. Each of these approaches is presented differently from one another in their own unique way. First was the classical approach to management, which spotlighted mainly on the machines and systems that needed to perform each task efficiently. In the late 1800s the social desiderata of employees didn’t matter. It withal had two components, scientific management and administrative management. Scientific management was to help ameliorate the efficiency of work by systematic and scientific study of work methods, implements and performance standards. The administrative management accentuates that management as a function can be applied to any size or kind of organization. Its main purport was the organization holistically, and not individual workers in the workplace. Second, was the behavioral approach to management, which stressed management’s understandings of the importance of people’s needs, and attitudes within the company. After nine years of researching what conditions in the workplace...
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...CASE STUDY : Policy Encounter, Power, and Motivation at Consolidated Automobile A Case Analysis by Richard C. Martin, MBA The case of Consolidated Automobile is a classic basic case of management-labor conflict in a an assembly line manufacturing set-up. Here we will deal with how management can make use of theoretical approaches in solving problems or conflicts so that the right decision can be made. I. Statement of the Problem How will the production in the assembly line at Consolidated Automobile Manufacturer’s Incorporated be restored? II. Objectives 1. To restore production on the profitless assembly line; and 2. To investigate root cause(s) of the strike, immediately implement corrective action plans, and develop policies and controls to prevent future interruptions by assembly line workers III. Areas for Consideration and Major Assumptions Laborer’s perspective * There might be a pressure in meeting the production quota; hence, assembly-line workers may have been forced by Winfare to work too much. * Workers are not in approval of Winfare’s way of supervising them. Their former supervisor’s way of handling the auto assembly line operations maybe too lax, as a result they are having a hard time adjusting to Winfare’s management style. * Assembly-line workers may not be compensated well for their extra work in meeting the production quota. They do not receive any motivation to work more to reach the production quota. * The heat from the...
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...geographic proximity win over consumers than quality of care and affordability. Many times people settle for convenience despite serve provided. When clients not receiving adequate care the measure of stability is at-risk for mental health patients. This problem is the same when agencies does not conform to the needs of diversity and cultural competence. The inability to meet clients’ needs through empathy and collaboration will limit resources available to aide clients. Organization Operational Theory KMW Family Services operates under the Contingency theory. The approach is a multifaceted approach of program structuring. It allows room for constant change based economic, social, and clinical demands. Moreover, the agency is able to explore options for internal reconstruction due to the diverse needs of clients. Contingency theories recognize that there is no “one best way” to structure all organizations. In fact, according to contingency theory, organizations should rely on how their agency would operate through productivity, challenges,...
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...Organization Behavior? Every individual is different They exhibit different behavior at any point of time WHAT IS ORGANIZATION, ITS, STRUCTURE, DESIGN AND THEORY Organization“a consciously coordinated social entity, with a relatively identifiable boundary, that functions on a relatively continuous basis to achieve a common goal or set of goals” Consciously coordinated- imply management Social entity means composed of people interacting Relatively identifiable boundary – clear delineation to distinguish members from non-members Achieve a common set of goals- what cannot be attained individually, company mission statement DEFINITION BY STEPHEN P .ROBBINS OB is a field of study that investigates the impact that individuals, groups and structure have on behavior within organizations, for the purpose of applying such knowledge towards improving an organization’s effectiveness. MANAGEMENT FUNCTIONS P O S D C The most widely accepted functions of management given by KOONTZ and O’DONNEL i.e.Planning, Organizing, Staffing, Directing and Controlling. MANAGEMENT FUNCTIONS FUNCTIONS Plan- According to KOONTZ, “Planning is deciding in advance - what to do, when to do & how to do. It bridges the gap from where we are & where we want to be”. A Future course of Action-Business Plan. Organize-to organize reporting relationships. Land,labour,capital,organizational structure, To organize a business involves determining & providing human and non-human...
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...F.W. Taylor contributed a number of principles and features of management thought that adhered to his new concept of approaching management thought scientifically. He was one of the founders of management thought theory and is considered the father of scientific management. His ideas were developed and used for decades after the concept was created. • Principles of scientific management. Taylor believed that scientific management consists of a philosophy that results in a combination of four main principles. The first principle suggests that management need to develop the best way to complete a job. It is the task of finding the best method for achieving the objectives of a given job. The second principle states that management must carry out a scientific selection of their workers and develop them through proper management. Thirdly, management must carry out a scientific approach. That is, a true science should be developed in all fields of work activity. The fourth and final principle states that there should be an elimination on conflicts between methods and men. Workers are likely to resist new methods and this can be avoided by using it as an opportunity to offer more wages. • Features of scientific management. Taylor put forward a huge number of features of scientific management. One was the introduction of the standard task which every worker is expected to complete within a day. This task should be calculated through scientific investigation and work study is essential...
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...organization is addicted to seek one prime means to reinforce management. However, everything is not static, it always tuned to optimal position. Organizations can be defined as systematically arranged frameworks relating people, things, knowledge, and technologies, in a design intended to achieve specific goals (Clegg et al, 2008, 8). This essay will argue that there is no one best way to structure organizations. The reasons for this include that business organization is only a tiny subsystem of the social system, it may be influenced by environment. Moreover, the activities of the organization are in the variable conditions, obtaining final goals needs more feedback during the operation process. Finally, based on competitive strategy, organizations should frequently adjust tactic to meet unforeseeable difficulties in order to get competitive advantages. Firstly, on the basis of situation and functions in the social system, organizations may take relevantly measures to maintain optimum adaption of the surroundings. Contingency approach claims that individual organizations need to adapt to their internal and external environments so as to survive and thrive. From the previous view, the management theory always pursued one best way to achieve general and reasonable solution. Unfortunately, with the tide of history, these methods seemed to be helpless. Because of this background, it is well known that there may not a greatest management means. The optimal organizational design is contingent...
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