The Contingency Theory

The Contingency Theory

With the rising challenges in the management of various business situations, it is without a doubt that managers need to come up with the best theory to assist them in addressing such challenges. This theory could be linked to Charles Kindleberger, who strongly affirms that every challenge in any given situation has a defined answer. He further noted that one single answer should not be used or applied in addressing a given problem. Instead, a single answer could be used to solve a specific problem in that each problem is unique and require a certain solution. This theory plays an important role in assisting the managers in influencing their actions on the employees to achieve a specific outcome. Through the application of this theory, the managers are able to handle challenges arising from their day-to-day work. Contingency theory argues that there is no best way of solving a given business-related problem, but instead, the optimal course of action is appropriate basing on the analysis of both the internal and external problems (Chemers, 2014). According to this theory, there is no one singular best way to solve a problem, and a solution that solves a given business problem might not be applicable in addressing a different problem. Advisedly, what defines the solution is the prevailing circumstances.

Example 1: Selection of Pizza Restaurant Manager

Scenario

A person X was to be appointed a new manager in Pizza Restaurant, and among his/her looming challenges include a low trust. This challenge is brought about by the fact that having being appointed the team will have low trust in him. Secondly, the restaurant is currently facing high turnover, and this will be a challenge for him to build a strong relationship. The business as a strong task structure in the sense that there are explicit operating procedures to follow in carrying out each employee’s duties. This company has empowered the manager with immense power and authority to hire, fire, reward, and punish.

Analysis of the Situation

Basing on the information provided in the Pizza Restaurant, it evident that the company has succeeded in coming up with task structure and providing the necessary authority to the managers, such as firing, hiring, rewarding, and among others. The major challenge that the new manager will face in on getting the best way to relate with employees to attain trust and lowering the turnover rate. With this analysis, the manager to be selected for this position is the one that has relationship-oriented skills. Notably, based on the contingency theory, a relationship-oriented leader will be the best solution following the given circumstance (Donaldson, 2001).

Example 2: Promotion to a managerial Position

Having been promoted to be the manager of a software development team, a company that you have worked for a period of 3 years. Since I have worked for this company for more than three years, there will be a high level of trust among the employees and the team that I am supposed to lead. Secondly, the task structure in this company is higher because each employee is clearly aware of the role that he/she is expected to play in the organization. Important to note is that the position power in this company is low, and this challenge is brought about by the fact that having been promoted to manage the team on a day-to-day, you are not responsible for the line manager who manages the team.

Analysis of the situation

Since the organization has succeeded in the areas of trust and coming up with a stronger task structure. There is a challenge on the power and authority given to the promoted manager. He/she has no direct control over the line managers, and the best solution needs to be provided in solving the problem. Basing on the contingency theory, a task-oriented leader will be the best solution in addressing this challenge (Miner, 2015).). Notably, the leader would ensure that the primary focus on the achievement of the provided tasks. Through the achievement of these tasks, the firm will attain its desired outcome.

Conclusion

From the discussion, it is without a doubt that the contingency theory plays a significant role in assisting the managers in examining how the best he/she can manage his/her team within the organization. Basing on theory, the choice of the preferable solution after analysis of the given circumstance will result in the desired outcome. The two examples provided revealed that following the analysis of the given situation, the most appropriate leadership skills has been chosen to address the prevailing problem. Therefore, contingency theory eliminates the assumption that there is one single best way to solve a given problem. It insists that each problem requires a specific solution.