Contingency Theory & the Global Environment

Discuss the role of contingency planning as a corrective measure in global business

Solution Summary

The purpose of this paper is to discuss the many forms of contingency theory in terms of organizational analysis or the many aspects of organizational leadership. Four important ideas of contingency theory are discussed, including the notion that there is no universal or best way to manage an organization; the design of the organization must fit with the external environment; as well as several others. In essence, contingency theory implies that a specific fit is necessary between the internal and external aspects of an organization, and thus, on a global level, such a fit, can be perceived as a corrective measure when other systems fail to fit the external environment.