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It All Depends

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Submitted By ayaboo1
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What is the core argument of contingency theories of organizations? Discuss giving examples from at least one such theory. Evaluate the claims of this theory and assess its relevance for organizations today.
Organizations operate in many different environments and it is vital to assess how they influence their structures. Effective and efficient organizing has become increasingly important in the modern world characterized by rapid changes. Contingency approaches emphasize that in order for organizations to succeed they must adopt a structure suitable for the environment in which they operate.
There are many forms of contingency theory. In general, contingency theories are a class of behavioral theory that claim that there is no best way to organize a corporation and the organizational structure of the company. An organizational or leadership style that is effective in some situations may not be successful in others. Therefore, the best way of organizing the company, is contingent upon the internal and external situation of the company.
External environments influence organizations in a varied number of ways. Critical external factors include, but are not limited to, the size of the organization, labor markets, availability and cost of capital, competitors, governmental laws and policies, managerial assumptions about employees, strategies, technologies used, etc.
The main ideas of contingency theory are:
* There is no universal or one best way to manage
* The design of organizations and its subsystems must 'fit' with the environment
* Effective organizations not only have a proper 'fit' with the environment but also between its subsystems
* The needs of an organization are better satisfied when it is properly designed and the management style is appropriate both to the tasks undertaken and the nature of the work group.
Several contingency approaches were

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