Contingency Theory

Contingency Theory Name: Institution: Contingency Theory Introduction (2pges) According to Carroll and Burton (2012), organization management is the practice under which an organization employs measures to ensure there is an effective and efficient structure that controls its operation. It is through the organization structure that determines how various departments and activities of an organization are controlled. Therefore, for an organization to have quality and timely production and service provision, skilled and experience personnel with the ability to govern towards the organization objectives should be employed. Similarly, Donaldson et al (2013) argued that organizations should take into consideration various management theories as they may have either positive or negative implication to the organization management. Likewise, on touching on the importance of an effective organization structure, Charles et al (2013) urged that proper organization formation should be one that provide conducive environment for all members of the organization in terms of proper communication procedures, good relationship and understanding of members of the organization, proper coordination among different organization departments and the development of effective and members friendly norms to govern the operation of the organization. For instance, through a well organized structure of an organization, all the three types of communication, upward, downward and horizontal communications should ensure proper coordination and timely production (Green, 2005). Another important issue that should be noted in ensuring proper structural of an organization is the ability of organization managers to agree on various decisions, be it long-termed or shot-termed decision, towards organization governing. Thus, a well coordinated organization structure should be able to come up with better strategies and decisions that are arrived at through a majority agreement. Equally, Yahya (2013) while focusing on the significance that an organization may face through contingence theory in organization management revealed that there might not be any specific method or approach that organization may use in developing its management structure. However, companies through their respective management must ensure the process and procedures of developing a better organization structure is used based on the operation of such firms (Burns, 2009). Hence, all members of the organization should be involved despite the level of their participation. In the process where organizational structure of an organization is not working as expected, proper strategies need to be laid immediately to resolve challenges faced by the organization. This approach is important according to Yahya (2013) because it is only through proper organization structure that results to better organization operations and productions. Therefore, organizations must make sure they develop better management structure in order to avoid challenges of poor coordination and production. Based on the various theories of management, this document provides information on contingency theory towards designing an organization structure. Moreover, it finalizes with some recommendations and conclusion on issues and theories of organizational structures. Background Information (1pg) Contingency theory refers to the theory method of developing organizational structure where organizations believes that its structure only depends on the environmental relationship in terms of production and service delivery (Volberda et al, 2011). As explained by Carroll and Burton (2012), the theory of contingency always tries to provide an overlook and management structure of the organization in relations to the current operation of the company. The operation of this form of theory is based on two factors, a factor that state that there exist no best method that organizations may use in organizing their operations while the second factor states that any approach used by an organization to organize their structure is not effective. Thus, based on the activities and operations within an organization, organizations should be able to use these factors in coming up with the best organizational structure (Charles et al, 2013). According to Carroll and Burton (2012), theory of contingence of one organization may not be applicable to another organization because different organizations have different internal and external demands. In order for organizations to come up with an effective organizational structure, they should consider different needs of the organization as this will help in developing an organization structure that response to the demands of the organization but collectively operate as one towards the plans and objectives of the organization. Moreover, there are certain management challenges that organizations need to consider when using the theory of contingency as the best approach in developing an organizational structure. For instance, an organization must ensure they develop an organizational structure that responds to all the demands of the organization despite their difference. This is a challenge as some demands may differ with others in terms of their operation, making it difficult for an organization to come up with a better organizational structure. Contingency Theory (4pges) In understanding contingency theory, there are different factors that an organization must consider and understand. These factors are based on current operations of the organization, which form the basis of organizational structure. Hence, it is through these environmental factors of the organization that controls the theory of contingency used by such organizations. Likewise, Donaldson et al (2013) urged that it is important to understand that a developed structural of one organization may be used by another organization that carryout similar organizational activities. The only challenge that may arise through the use of an organizational structural approach to another is that in a scenario where these organizations have different environmental contingency, structural application of the organization would not be effective as the organization that developed the structural system. Thus, in order for an organization to have an effective organizational structure, it is also important for the management involves in developing structure of the company to consider various PEST analysis of the firm (Green, 2005). Significance of Contingency Theory Management of Organizational Structure Based on the findings of Yahya (2013), organizations that have an effective contingency have realized different benefits of the approach in achieving better organizational structure. For instance, different companies have different organizational structures. This is important for organizations as it create certain differences in terms of their management and production that determines their strengths, opportunities and weaknesses. Through these differences, different organizations have developed stiff competition that helps customers to get better products and services. Consequently, instead of depending on the effect of another organization by using their methods of management, managers must study the operations environment of their organizations in order to come up with better designs of an effective organization structure Carroll and Burton (2012). One of the fundamental facts that managers must understand towards developing of an effective management structure of an organization is that for an organization to have better structure through the use of contingency approach, the process should be based on various management principles of the organization. These principles are including principles of operations such as the ones that rule the controls the division of work within the organization. Another principle that Yahya (2013) found to be important towards structuring management structure of the organization is the position hierarchy of members ...