Contingency Theory Essay

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Contingency Theory “Contingency theory is a class of behavioral theory claiming that there is no best way to organize a corporation, lead a company, or make decisions” (Pfeffer, 1997). There is no simple or one right way to run things. In the 1950’s and 1960’s, two men named Henri Fayrol and Frederick Taylor continued the study of contingency theory. Research in the 1970’s dealt with the organizational structures and leadership styles for different situations (Thompson, 2005). Contingency theory was started by Joan Woodward, whose company research found that different types of processes were linked to different structures and amounts of control. She said that certain organizational forms are appropriate for certain forms of work. …show more content…
Stability in an environment will define how long an organization will last.
Policies, rules, and procedures effects the decisions of an organization. FedEx Express is not allowed to make up its own rules. It has to follow the rules given be FAA. If a plane is not airworthy, it cannot fly. If it is over weight, the plane has to be unloaded to meet standards. It seems that smaller organizations are given more leeway to be less formal than larger ones. Thompson states smaller organizations only have to deal with local, state, and federal laws and regulations. Larger organizations have to deal with the following plus international and foreign affairs. As with Federal Express, the company needs to comply with the rules and regulations when shipping internationally. They have to obtain and abide by the rules in which the plan to do business with. If a country has a national holiday, FedEx needs to be aware of it. Customers need to know that there will be a delay due to this reason. This alone can hinder how an organization is run (Thompson, 2005). Seeing that a larger business consists of more employees, this gives each person a more specific type of job or duty. A project may have to go through more than one set of hands and therefore, change the position in which a decision is made. In smaller corporations, less people handle the workload. Two men named Lorsch and Lawernce think that two organizations developing in two different places

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