Contingency theory

“There is no one best way to organize... Any way of organizing is not equally effective.”

“Contingency theory is an outgrowth of systems theory. This approach essentially argues that the decision-making style should be suitable for the situation in which the organization finds itself.”

“Contingency theorists suggest that we can best proceed by appointing 'the right people' to the job we have in mind, and by creating flexible authority, communications, and reward structures that will motivate them to satisfy their own needs through the achievement of organizational goals.”

“This article [entitled A framework for the comparative analysis of organizations (1967)], was one of three independent statements in 1967 of what came to be called "contingency theory." It held that the structure of an organization depends upon (is ‘contingent’ upon) the kind of task performed, rather than upon some universal principles that apply to all organizations. The notion was in the wind at the time.”

“Organizational theorists, at least since the pioneering work of Burns and Stalker, 1961 and Joan Woodward, 1965 and others in what came to be called the contingency school, have recognized that centralization is appropriate for organizations with routine tasks, and decentralization for those with nonroutine tasks. For an early statement see Perrow 1967, and Lawrence and Lorch, 1967.”

“Contingency Theory is not a theory at all, in the conventional sense of theory as a well-developed set of interrelated propositions. It is more an orienting strategy or metatheory, suggesting ways in which a phenomenon ought to be conceptualized or as approach to the phenomenon ought to be explained. Drawn primarily from large-scale empirical studies, contingency theory relies on a few assumptions that have been explicitly stated, and these guide contingency research.”

“Contingency theory is guided by the general orienting hypothesis that organizations whose internal features best match the demands of their environments will acheive the best adaptation.”