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Contingency Management

The goal of scientific management was to use systematic study to find the one best way of doing each task and then use that one best way everywhere. The problem, as you may have gathered from reading about the various approaches to management, is that no one in management seems to agree on what that one best way is. Furthermore, more than 100 years of management research has shown that there are clear boundaries or limitations to most management theories and practices. No management ideas or practices are universal. Although any theory or practice may work much of the time, none works all the time. How, then, is a manager to decide what theory to use? Well, it depends on the situation. The contingency approach to management clearly states that there are no universal management theories and that the most effective management theory or idea depends on the kinds of problems or situations that man-agers or organizations are facing at a particular time and place. In short, the best way depends on the situation. One of the practical implications of the contingency approach to management is that management is much harder than it looks. In fact, because of the clarity and obviousness of management theories (OK, most of them), students and workers often wrongly assume that a company’s problems would be quickly and easily solved if management would take just a few simple steps. If this were true, few companies would have problems. A second implication of the contingency approach is that managers need to look for key contingencies that differentiate today’s situation or problems from yesterday’s situation or problems. Moreover, it means that managers need to spend more time analyzing problems, situations, and employees before taking action to fix them. Finally, it means you need to pay particular attention to qualifying phrases such as “usually,” “in these situations,” “for this to work,” and “under these circumstances.” Doing so will help you identify the key contingencies that will help you become a better manager.