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Contingency Theory & the Global Environment

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

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According to www.istheory (2010), there are many forms of contingency theory. According to this site, in a general sense, contingency theories are a class of behavioral theory that contend that there is no one best way of organizing/leading and that an organizational/leadership style that is effective in some situations may not be successful in others (citing Fiedler, 1964). In other words, according to this author, the optimal organization/leadership style is contingent upon various internal and external constraints.

According to www.istheory ((2010) four important ideas of contingency theory are:

1. There is no universal or one best way to manage;
2. The design of an organization and its subsystems must fit with the environment;
3. Effective organizations not only have a proper ...

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.