The 

contingency approach to management emerged from the real-life experience of managers

who found that no single approach worked consistently in every situation. The basic idea of this
approach is that number management technique or theory is appropriate in all situations. The main
determinants of a contingency are related to the external and internal environment of an
organization.

The process, quantitative, behavioral, and systems approaches to management did not integrate the
environment. The often assumed that their concepts and techniques have universal applicability. For
example, the process theorists often assume that strategic planning applies to all situations; the
quantitative experts generally feel that linear programming can be used under all conditions; the
behavioral theorist usually advocates participative goal setting for all superior-subordinate pairs; and
the system advocates tend to emphasize the need for computerized information flows in all
situations. On the other hand, practicing managers find out that a particular concept or technique
from the various approached just does not work effectively in various situations. The theorists
accuse practitioners of not applying the technique properly, and the practitioners accuse the
theorists of being unrealistic. The contingency approach does incorporate the environment and
attempts to bridge this existing theory-practice gap.

Contingency approach to management advocates that managerial actions and organizational

design must be appropriate to the given situation and a particular action is valid only under certain
conditions. There is no one best approach to management and it all depends on the situation. In
other words, managerial action is contingent upon external environment. There is no one best
approach for all situations. What a manager does depends upon a given situation and there is an
active inter-relationship between the variables in a situation and the managerial action. Contingency
theory attempts to analyses and understand these interrelationships with a view towards taking the
specific managerial actions necessary to deal with the issue. This approach is both analytical and
situational, with the purpose of developing a practical answer to the question at hand.

There are three major elements of the overall conceptual framework for contingency approach to
management; the environment, management concepts and techniques and the contingent
relationship between them.

Features of Contingency Approach to Management

1. Management is externally situational: the conditions of the situation will determine which
techniques and control system should be designed to fit the particular situation.
2. Management is entirely situational.
3. There is no best way of doing anything.
4. One needs to adapt himself to the circumstances.
5. It is a kind of “if” “then” approach.
6. It is a practically suited.
7. Management policies and procedures should respond to environment.
8. Managers should understand that there is no best way of managing. It dispels the universal
validity of principles.

Superiority of Contingency Approach

Clear-cut emergence of contingency approach to management was noticed after the popularization
of systems approach. The contingency theorists accept open adaptive nature of the organization and
the interdependency between various sub-systems of the organization. But they have pointed out
that the systems approach does not adequately spell out the precise relationship between
organization and its environment. It is too abstract and difficult to apply in practice. They have tried
to modify and operationalize the system framework.

The systems approach to management takes a broader view of organizational variables and

employs a comprehensive model of human beings. It takes into account the full range of human
needs and motives. On the other hand, contingency approach to management is concerned mainly
with the structural adaptation of organization to the task environment. But both these viewpoints are
not mutually exclusive. They should be treated as complementary to each other. The manager
should use systems and other approaches under the framework of contingency approach.

Contemporary Approaches to
Management
Contemporary Approaches to Management provides a framework of
management practices based on more recent trends, such as
globalization, theory Z concepts, McKinsey’s 7-S approach, excellence
models, productivity and quality issues, etc. With the appearance of
global entities like the World Trade Organization (WTO) and the
European Economic Community (EEC), we are all now operating in a
global economy.

Our managers now need to think globally even while operating in the
domestic market. We are losing our market shares even in our
domestic market because of competition from foreign companies.
Hence, understanding management with a global perspective has now
become important.

1. Theory Z Concepts:
Theory Z concepts pioneered by Ouchi and Jaeger (1978) incorporate
Japanese and American management culture and emphasize on the
need to study and adopt appropriate management practices from
other countries. The concept can be understood from the information
in Table 2.4.

2. McKinsey’s 7-S Framework:

McKinsey’s 7-S framework identified seven independent
organizational factors that need to be managed by today’s managers.

These factors are:

1. Strategy—to determine allocation of scarce resources and to commit
the organization to a specific course of action

2. Structure—to determine the number of levels (in hierarchy) and

authority centres

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3. Systems—to determine organizational processes, procedures,

reports, and routines

4. Staff—to determine key human resource groups in an organization

and describe them demographically
5. Style—to determine the manner in which managers should behave
for achieving organizational goals

6. Super-ordinate goals (shared vision)—to determine the guiding con-

cepts that an organization needs to instil in its members

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7. Skills—to determine the abilities of people in an organization

The 7-S framework suggests that any change in any S factor may result
in adjustment of other S factors. Now, however, the concept of 8-S has
been introduced by adding one more S—Streaming. Streaming
includes those areas that either directly or indirectly influence or
shape all the 7-S.

For example, governmental regulations have an impact on

organizational strategy. Certainly, the competition has an influence on
structure, systems, and even vision. Another example would include
what is happening in the global economy.

All of these factors exist outside of the organization in an area called

the stream. Companies, in order to ensure alignment and
development, need to take into account not only internal components,
but also what is happening outside of the organization. Peters and
Waterman (1982) in their pioneering work In Search of Excellence
identified some common characteristics of excellent organizations.

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The characteristics have now become important
management principles:
1. A bias for action—Excellent firms make things happen.

2. Closeness to the customer—These firms know their customers and

their needs.

3. Autonomy and entrepreneurship—They value these in each

employee.

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4. Productivity—They achieve this through people, based on trust.

5. Hands-on, value-driven management—They make it mandatory.

6. Stick to the knitting—They always deal from strength.

7. Simple form, lean staff—They develop cost-effective work teams.

8. Simultaneous loose-tight properties—They decentralize many deci-

sions but retain tight overall control.

Global competition has also accentuated the need for enhancing

quality and productivity. These two are the basic requirements to
retain competitive advantage for any organization. Hence,
management practices should focus on these by developing human
resources to sustain their competitive advantage.
What is Behavioral Leadership Theory? Definition and Types of
Behavioral Leadership
Behavioral leadership theory is a management philosophy that evaluates leaders
according to the actions they display in the workplace. Supporters of this theory believe
that all you need to do to be an effective leader is to learn a certain set of behaviors. If
you are interested in becoming a more efficient leader or in implementing a new
leadership style, you can benefit from learning about behavioral leadership theory. In
this article, we define behavioral leadership and discuss the different types of behaviors
associated with certain leadership styles.

What is behavioral leadership theory?

Behavioral leadership theory argues that the success of a leader is based on their
behavior rather than their natural attributes. Behavioral leadership theory involves
observing and evaluating a leader's actions and behaviors when they are responding to
a specific situation. This theory believes that leaders are made, not born. Proponents of
this theory suggest that anyone can become an effective leader if they are able to learn
and implement certain behaviors.
Behavioral leadership theory is highly relevant in a number of fields. Every project
manager, CEO, activities coordinator or any other kind of professional leader can all be
evaluated according to the criteria developed by the behavioral leadership theory. This
theory promotes the idea that all leaders are capable of learning and developing
through adopting beneficial behaviors and performing them in their workplace.
Behavioral leadership theory also encourages leaders to be self-aware of their behavior
and to recognize how it affects the productivity and morale of their team.
Read more: How to Demonstrate Leadership Skills at Work

Types of behavioral leadership

There are several key styles of behavioral leadership. Each one involves a different set
of behaviors and may be more or less effective in certain work environments:

 People-oriented leaders
 Task-oriented leaders
 Participative leaders
 Staus-quo leaders
 Indifferent leaders
 Dictatorial leaders
 Country club leaders
 Sound leaders
 Opportunistic leaders
 Paternalistic leaders
People-oriented leaders
People-oriented leaders focus on behaviors that allow them to meet the needs of the
people they interact with, including supervisors, employees and clients. They are
primarily driven by interpersonal connection and communication. People-oriented
leaders build relationships with their team members to motivate them to perform well.
This type of leader favors behavior related to:

 Encouraging collaboration
 Rewarding success
 Observing their team's progress
 Mentoring team members

Read more: 10 Common Leadership Styles (With Examples)

Task-oriented leaders
Task-oriented leaders are primarily focused on setting goals and achieving objectives.
Task-oriented leaders thrive in a well-structured environment and often show
authoritative behavior. They are typically more focused on their team's final results
rather than the day-to-day developmental process. Behaviors that are common for a
task-oriented leader include:

 Initiating projects
 Organizing processes
 Clarifying instructions
 Gathering relevant data

Participative leaders
Participative leaders make an effort to include their entire team in decision-making
processes. They prioritize active communication, collaboration and feedback.
Participative leaders know their team's strengths and weaknesses and assign tasks
accordingly. This leadership style allows every team member's voice to be heard and
considered. Participative leaders are likely to:

 Facilitate team meetings

 Ask for constructive feedback
 Take suggestions for improvement
 Delegate tasks to other team members

Read more: Leadership Skills: Definitions and Examples

Status-quo leaders
Status-quo leaders make an effort to prioritize both productivity and employee
satisfaction. They ensure that all tasks are finished on time while also providing support
and encouragement to their team members. Staus-quo leaders typically meet the needs
of their team without going above or beyond expectations. Some behaviors associated
with status-quo leaders include:

 Distributing tasks evenly

 Requiring regular progress reports
 Enforcing company policies fairly
 Responding to feedback neutrally

Indifferent leaders
Indifferent leaders do not prioritize interaction or communication with their team. They
usually oversee progress from a distance and do not contribute to their team's daily
efforts. They are primarily focused on personal success and advancement. Due to the
lack of cooperation, an indifferent leadership style is widely considered the most
ineffective of the behavioral leadership types. Behaviors typical for indifferent leaders
include:

 Avoiding questions
 Procrastinating
 Self-preserving
 Assigning unwanted tasks to others

Dictatorial leaders
Dictatorial leaders often value results more than they do people. They may pressure
their team members to perform well even during stressful or challenging periods.
Dictatorial leaders are often successful in delivering high-quality results but may
experience high-turnover rates due to employee dissatisfaction and burn out. The
behaviors of a dictatorial leader include:

 Setting inflexible deadlines

 Disregarding excuses
 Ignoring feedback
 Achieving short-term goals

Country club leaders

Country club leaders prioritize their team members' happiness and satisfaction level.
They believe that a team that is comfortable and well-provided for is more likely to be
successful. Team members are likely to show high levels of trust and loyalty when
working with country club leaders. Some country club leaders might sacrifice
productivity in exchange for improving their team's morale or workplace relationships.
Country club leaders' behavior often involves:

 Responding to team member feedback

 Focusing on employees' well-being
 Defending employees' interests and rights
 Supporting the team members' decisions
Sound leaders
Sound leadership is considered the most effective type of behavioral leadership.
However, it is typically difficult to practically implement. Sound leaders equally prioritize
productivity and team morale. They value their team members, set achievable goals
and deliver high-quality results. They are intrinsically motivated to succeed and find
satisfaction in supporting their team's progress. Sound leaders exhibit behaviors like:

 Encouraging open communication

 Allowing employees to work independently
 Listening to and implementing feedback
 Providing training and continuing education to team members

Opportunistic leaders
Opportunistic leaders pick and choose different behaviors from the previous styles.
They are able to adjust and adapt their leadership style to fit a particular situation. They
are goal-oriented and will use whatever methods are necessary to achieve their
objectives. For example, they might adopt a dictatorial persona in the weeks leading up
to a major deadline and then shift to country club leadership afterward to repair their
relationship with their team. The specific behaviors of an opportunistic leader vary, but
may include:

 Lack of consistency
 Pursuing results regardless of cost
 Enforcing their own standards for success
 Caring for their team with the goal of improving performance

Paternalistic leaders
This leadership style strives to be stern but fair, much like a father with a child.
Paternalistic leaders are goal-oriented but are willing to be flexible in regard to
methodology. They frequently set lofty goals and reward team members that achieve
them. They value their team members' individual skills and offer opportunities for them
to develop professionally. Other behaviors associated with the paternalistic style
include:

 Rewarding positive behavior or success

 Disciplining failure
 Disregarding feedback
 Offering leadership opportunities to promising employees