In: Economics
Select either contingency or situational theory. Discuss either the basic assumption or the foundations of the theory. Find or provide an example of a time when you either saw or applied this theory in action.
Contingency theory : the study of oraganization is response to prior theorie of management that dispie their diversity commonly emphasised one by one way to organize It is used for direct practice relationship between two situations . If one situation exist then conclusion can be drawn about another situation .
The basic assumption's are
Fit : the better the fit among contingency variable . Rationality : organizational actors perform in way that are always in concert with the superordinate goal of organizational effectiveness. Situational determinism : example : the environment is given and managers and thus organization cannot influence it . Deterministic model : clear causal inference is often made .
Contingency theory is applied in business organization which combines ideas about uncertainty in the environment and external factors influencing work with context specific features of leadership and decision making .