Contingency Theories of Organizations

calamity Theories of OrganizationsPart 2 OB What is the core argument of accident theories of organizations? Discuss giving examples from at to the woefulest degree ane such theory. Evaluate the claims of this theory and assess its relevance for organizations today.Organizations survive in many diverse surrounds and it is vital to assess how they influence their expressions. rough-and-ready and efficient organizing has become increasingly important in the modern gentlemans gentleman characterized by rapid changes. Contingency approaches emphasize that in order for organizations to follow they essential adopt a building suitable for the environment in which they operate.There be many forms of contingency theory. In general, contingency theories be a class of behavioral theory that claim that thither is no best agency to organize a corporation and the organizational organize of the company. An organizational or leading entitle that is stiff in near situations may not be successful in others. Therefore, the best representation 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, plainly if atomic number 18 not limited to, the size of the organization, labor markets, availability and cost of capital, competitors, goernmental laws and policies, managerial assumptions about employees, strategies, technologies used, etc.The main ideas of contingency theory atomic number 18* There is no universal or one best way to manage* The design of organizations and its subsystems must fusillade with the environment* Effective organizations not only contract a proper fit with the environment but also between its subsystems* The needs of an organization are better well-provided when it is properly designed and the perplexity style is appropriate some(prenominal)(prenominal) to the tasks undertaken and the nature of the exploit convocation.Several contingency approaches were developed simultaneously in the deeply 1960s. The emergence of the theory was the result of criticisms of the classical theories such as Webers bureaucracy (Weber, 1946) and Taylors scientific management (Taylor, 1911) which had failed because they neglected that management style and organizational structure were influenced by various aspects of the environment the contingency factors. The contingency approach originated with the charm of Joan Woodward (1958), who declared that successful organizations in different industries with different technologies were characterized by different organizational structures.In this essay I will discuss ternary influential contingency theories, those of ruin and Stalker (1961), Lawrence and Lorsch (1967) and Fiedler (1967).Tom Burns and graham Stalker in their 1961 book, The Management of Innovation studied about 20 Scottish and British electronics companies ope rating in increasingly competitive and modernistic technological markets. Their findings demonstrated that organizations operating in stable environments are rattling different from those which arrive at to face a changing and dynamic environment. The authors have discovered that differences in the way firms approached change and innovation related to the value and mission of the firms.Burns and Stalker classified the firms into 2 categories on the bum of their managerial structures and practices mechanistic and natural.The authors found that mechanistic organizations, also c all tolded bureaucracies, are suited for relatively stable environmental conditions. Such organizations are clearly programmed, rigorously controlled and hierarchically structured. Often they do not have mission and muckle statements, and quite depend on established rules for guidance, measuring success by the degree to which staff conforms to process and procedure. Organizational tasks are typically low-spirited d experience into specialized activities. Individuals are responsible for their specific functions in a relative isolation from the overall organizational goal.The organic organizations are to a greater extent likely to exist under unstable environmental conditions. Organic organizations are orientated towards results, have a flat organization structure instead of a hierarchy, and little structure in terms of process and rules. They pore on results and employees receive positive rewards for creative and pragmatic contributions. Given these conditions it becomes infallible to review and redefine the responsibilities, methods, inter-role relationships, and even goals on a continual basis.Burns and Stalker emphasized that each system is appropriate under its own specific conditions. Neither system was superior to the other under all situations. Since the 1960s much of writings in organization theories field is a constant debate between the machine/organ analogies, and at tempts to develop suppuration models of how simple mechanistic forms canful grow into the more complex organic forms.Another significant study to demonstrate the relationships between environmental characteristics and effective organizational structures was conducted by Paul Lawrence and Jay Lorsch (1967). They studied ten US firms in three separate industries (plastics, food, containers) that confronted varying degrees of uncertainty, complexity and change.The researchers found that successful firms in each indus analyze had a different degree of differentiation. The firms operating in uncertain, complex, rapidly changing environments had more highly differentiated internal structures sales, performance and RD departments. Such organizations require the greater need for suitable mechanisms for integrating and firmness conflicts between ranges of segments.Successful firms in more homogeneous and stable environment were more formalized and hierarchical in their forms. Authors con cluded that successful firms must have internal structures as complex as environments in which they operate. This seminal work of Lawrence and Lorsch refined the contingency theory by demonstrating that different markets and technological environments require different kinds of organizations, and that subunits or functional departments within an organization aptitude be managed in different ways, due to variations resulting from their sub-environments. Their view is ecological those organizations that can best adapt to the environment will survive.Managerial loss attractorship has influenced organizational activities in many ways. These influences include motivating subordinates, bud digesting scarce resources, and serving as a source of communication. Contingency theories of attractership argue that no iodine leadership style is effective in all circumstances, but the leadership styles are contingent on the organizational and situational setting. Fred Fiedlers theory (1967 ) is the earliest and most(prenominal) extensively researched is also known as contingency model of leadership effectiveness.Fiedlers ideas originated from trait and behavioral models by stating that performance of the group is dependent on the leaders psychological orientation and on three contextual variables group atmosphere, task structure, and leaders reason cast. The contingency model underlines the importance of both the leaders personality and the situation in which that leader operates.The first study factor in Fiedlers theory is known as the leadership style. This is the invariable system of interaction that takes place between a leader and work group. In order to classify leadership styles, Fiedler has developed an index called the Least-Preferred Coworker (LPC) scale.To get an LPC commemorate a leader is asked to think of co-workers with whom he/she has ever worked and convey the one with whom the work was the most difficult. Then this person is rated on a number of eight-point bipolar scales (friendly/unfriendly, hostile/supportive, etc.). The results to these scales are summed and averaged a high LPC score suggests that the leader has a human relations orientation, while a low LPC score indicates a task orientation.The minute major factor in Fiedlers theory is known as situational favorableness or environmental variable. This basically is defined as the degree a situation enables a leader to exert influence over a group. Fiedler then extends his analysis by focusing on three key situational factors, which are leader-member, task structure and position power.For leader-member relations, Fiedler contains that the leader will have more influence if they maintain good relationships with group members who like, respect, and trust them, than if they do not. Fiedler explains that task structure is the second most important factor in determining structural favorableness. He contends that highly structured tasks, which specify how a job is to be through with(p) in detail provide a leader with more influences over group actions than do unstructured tasks. Finally, as for position power, leads who have the power to hire and fire, discipline and reward, have more power than those who do not. For example, the genius of a department has more power than a file clerk.By classifying a group according to three variables, it is likely to identify eight different group situations or leadership style. These eight different possible combinations were then classified as either task orientation or relationship orientated.Several implications can be derived from Fiedlers findings. First, it is not accurate to say of effective and ineffective leaders. Fiedler goes on by suggesting that there are only leader who perform better in some situations, but not all situations. Second, almost anyone can be a leader by carefully selecting those situations that match his or her leadership style. Lastly, the effectiveness of a leader can be impr oved by designing the job to fit the manager. For instance, by increasing or decreasing a leaders position power, changing the structure of a task, or influencing leader-member relations, an organization can spay a situation to better fit a leaders style.The spare-time activity aspects can be considered as strengths of Fiedlers theory it is predictive and supported by a lot of empirical research, it does not require that people be effective in all situations and provides a way to assess leader style that could be useful to an organization. However among its weaknesses are the fact that it is bungling to use, it doesnt explain what to do when there is a mismatch between style and situation and it doesnt take into account situational variables, like training and experience, which also have an impact in a leaders effectiveness. Finally, there is some enquiry whether the LPC is a true measure of leadership style.In summary, the essence of contingency theory is that best practices de pend on the contingencies of the situation. Contingency theory is oft called the it all depends theory, because when a contingency theorist is being asked for an answer, the typical response will be that it all depends. While this may sound simplistic, assessing the contingencies on which decisions depend can be a very complex. Contingency theorists try to identify and measure the conditions under which things will likely occur.Considering that organizations should attain both external and internal fit to achieve superior performance, at the identical time, the processes of strategy formulation and implementation are not separable activities there is a need for an integrative approach that incorporates both schools of thought. The appropriate management style and organizational structure depend on the environmental context of the organization concerned.The ability to manage change is now recognized as a core organizational competence.References1. Fineman, S., Sims, D. Gabriel, Y. (2005) Organizing and organizations , London, Sage.2. Smith, M. J. (1984). Contingency rules theory, context, and compliance behaviors. Human chat Research, 10, 489-512.3. Burns, T., Stalker, M. (1961). The Management of Innovation, 3rd Edition, 1994, Oxford University Press4. Lawrence, P. R., Lorsch, J. W. (1967). Organization and Environment. Cambridge, MA Harvard University Press.5. Fiedler, F. E. (1964). A Contingency Model of Leadership Effectiveness. Advances in Experimental Social Psychology (Vol.1). 149-190. raw(a) York Academic Press. Burnes, B. (1996), No such thing as a one best way to manage organizational change. Management decision, Vol. 34, Issue 10, pp. 10-18