Contingency Theory of Management

The art of management is ever changing in today's dynamic world of competitive businesses. We must believe managing the businesses using traditional approaches do not have any positive effect on organizational efficiency and performance. 

Though the Administrative management theories and Scientific management theories have laid foundations to the study of management, these theories do not "fit" todays' business happenings. Some private sector organizations have diverted their cooperative goal of profit maximization to customer satisfaction and providing the best quality possible with in their capacity. Companies more focus of survival strategies rather than expansion/ diversification strategies due to cut-throat competition in the market. Production processes became more complicated and integrated with supply chains of component parts and the single product manufactured is effort of many companies and philanthropists. Human relations in organizations urge the CEOs to listen subordinate words and perfect knowledge about businesses and in the market remove the high authority and bureaucracy in the hands of CEOs. Employees are more updated than their CEOs due to ever growing technology.

To keep phase, the running of administration of the organization and formulation of new strategies the need for "Contingency Approach" to management arises - there is simply no best theory of management but different theories of management must be used according to upfront situations.