Contingency theory

This refers to the organisational theory that there is no single best way to organise, lead or make decisions in an organisation.

The theory claims that the most appropriate approach is contingent, or dependent, on a range of internal or external factors. For example a tightly controlling approach may be needed for a critical period where financial resources are stretched, while a laid back approach may be better for the generation of new research and development opportunities.The theory claims that the most appropriate approach is contingent, or dependent, on a range of internal or external factors. For example a tightly controlling approach may be needed for a critical period where financial resources are stretched, while a laid back approach may be better for the generation of new research and development opportunities.

Contingency theory is a term normally found in strategic management.

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