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Unit 2: Evolution of Management Thought

Evaluation of Contingency Approach Notes

Contingency approach guides the managers to be adaptive to environmental variables. In other
words, the managers should develop situational sensitivity and practical selectivity.
Contingency approach suggests the managers to condone environmental contingencies while
choosing their style and techniques.
Contingency approach is an improvement over systems approach. It not only examines the
relationships of sub-systems of the organisation, but also the relationship between the
organisation and its environment.

Table 2.4: Systems Approach vs. Contingency Approach

Systems Approach Contingency Approach
1. It lays emphasis on the inter- 1. It identifies the nature of inter-dependencies
dependencies and interactions among and the impact of environment of
systems and sub-systems. organisational design and managerial style.
2. It treats all organisations alike. Size of 2. Each organisation is to be studied as a unique
the organisation, and its socio-cultural entity.
setting are not considered.
3. It studies organisation at the 3. It follows an action-oriented approach and so
philosophical level. is pragmatic. It is based on empirical studies.
4. It does not comment on the validity of 4. It rejects the blind application of the classical
the classical principles of management. principles of management.
5. It simply lays down that the 5. The impact of environment on the
organisation interacts with the organisation structure and managerial style is
environment. the major concern of contingency approach.

2.10 Operational Approach

Koontz, O’Donnell and Weihrich have advocated the operational approach to management.
This approach recognizes that there is a central core of knowledge about managing which exists
in management such as line and staff, patterns of departmentation, span of management,
managerial appraisal and various managerial control techniques.
Operational approach to management regards management as a universally applicable body of
knowledge that can be brought to bear at all levels of managing and in all types of enterprises.
At the same time, the approach recognizes that the actual problems managers face and the
environments in which they operate may vary between enterprises and levels. It also recognizes
that application of science by perceptive practitioner must take this into account in designing
practical problem solutions.
The operational approach to management is based largely on the following fundamental beliefs
that:

1. Management is an operational process initially best dissected by analyzing the management
functions.
2. If the knowledge of management is to be presented effectively, clear concepts are necessary.
3. Experience with managing in a variety of situations can furnish grounds for distillation of
basic truths-theory and principles-which have a clarifying and predictive value in
understanding and improving practice.

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