The paper "The Contingency Theory of Organizations" is a wonderful example of a literature review on management. Organizational theory is defined as the application of knowledge on how people act within organizations, either as an individual or as a group. It is also a systematic study of organizational structures, organizational designs, relationships of the organization and the external environment, and the behavior of managers and technocrats in an organization. These theories suggest various ways to cope with the changes in the organization as a result of the interactions between the management and its employees.
Keith Grint’ s book “ The sociology of work” has outlined various concepts, models, and theories that illustrate the dynamics between the management of an organization and its employees. The various contemporary theories of work organization that is discussed in the book include coercion, paternalism, Lenin, human relations, neo-human relations, organizational cultures, critical theories, system theories, contingency theory, action theory, population ecology theory, evolutionary biology, rational choice theory, complexity theories, political organizational theories, Foucault and postmodernism, actor networks, and institutional theory. Fiedler’ s contingency theory seems to describe the relationship between managers and employees better than other theories.
In fact, he attempts to make sense of the complexities of human personalities and the situation in which managers must act. According to contingency theory, there is no one best way in which an organization can be managed and a particular organization style may be effective in one situation while in another situation it is not (Donaldson, 2001). Bacher (2007) considers contingency theory as the one that forms the foundation in which ideas of human resource and classical thoughts are combined.
The management decisions are based on the contingent demands of the employees and therefore managers should adopt a management style that is more suitable in an uncertain and flexible environment. The organizational style used by managers is contingent on both external and internal constraints which may include: how the organization adapts to its environment, its size, technologies used, differences among operational activities and resources, assumptions of managers about their employees, etc.