Organizational behavior is a field of business or management studies that looks at the relationships between individuals and the factors that motivate them, both intrinsically and extrinsically. The contingency approach focuses on the various factors, or contingencies, that have an impact on an organization's behavior.
Reacting to Contingencies
The fundamental basis of contingency theory is that there is no best way to manage a corporation or to deal with employees. Such activities cannot be planned, because so many things change so quickly in the business world. Rather than being proactive, managers and business leaders must be reactive to the various changes and contingencies they face on a day-to-day basis.
Internal and External Influences on Leadership
The contingency theory of leadership holds that the success of a business leader or manager is contingent on numerous internal and external factors facing him. Internal factors include the character and quality of his subordinates, the level of support received from superiors within the organization and the tasks assigned to him. External factors include economic concerns, the level of competition in the marketplace and relationships with channel partners and business partners, among others.
Contingency Theory and Decisions
The contingency theory of decision-making argues that the effectiveness of a decision-making procedure depends on many contingent factors surrounding the decision. Such factors include time constraints, for example. Generally speaking, the greater the time constraint, the more flawed the decision-making process will be. Another important contingency is the amount of relevant information possessed by a decision-maker and his subordinates. The greater the amount of information, the more sound the decision should be.
Contingency Rules and Context
The contingency rules theory suggests that rules, consequences and their impact on the behavior of individuals or groups of individuals depend upon the context in which they exist. For example, the influence of some rules might be more significant in situations in which a member of senior management is present or on the level of importance placed on the potential benefit of disobeying a rule.
- Photo Credit Notorious91/iStock/Getty Images
What Is the Systems Approach of Organization?
As businesses grow, adding multiple departments with varying goals, it is important to foster and maintain a unified approach to management to...
What Is Contingency & Situational Leadership?
Contingency theory and the situational leadership model offer two ways to look at a manager's role in an organization. Managers make decisions...
What Are Some Theories of Organizational Behavior?
There are many distinct theories of how people behave in organizations and, accordingly, of how the organizations develop over time. These theories...
Fiedler's Contingency Theory of Leadership
Many people might think of the phrase "back-up plan" when asked to define contingency. However, in Fiedler's Contingency Model, contingency means "depends...
Roots of Organizational Behavior
Organizational behavior (OB) is an interdisciplinary management field that seeks to understand and influence human behavior in organizations. Organizational behavior has three...
What Are Organizational Theories?
Organizational theory attempts to explain the workings of organizations to produce understanding and appreciation of organizations. Organizational theory draws from various bodies...
List of Organizational Theories
Organizations seem to take on a life of their own but there are many structural theories that define them. Any organization is...
Contingency in Leadership Styles
In the late 1950s, Austrian psychologist Fred Fiedler theorized that there are two types of leadership -- skills that enable leaders to...
Importance of Job Satisfaction & Organizational Behavior
According to Jane Williams, professor of psychology at Indiana University-Purdue University, job satisfaction and organizational citizenship behavior -- another term for organizational...
About Behavioral & Contingency Theories
Behavioral theories are a large class of theories in psychology that attempt to explain why individuals act in certain ways, and how...
Contingency Approach in Organizational Theories
There are various approaches to organizational theories used in the management of any organization. The contingency approach is one of the preferred...