Economics 2150A/B Lecture Notes - Lecture 1: Contingency Theory

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ECON 2150A/B Full Course Notes
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ECON 2150A/B Full Course Notes
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As no two organisations will face exactly the same contingencies (burnes b, 2009), there is no perfect way of organising every organisation. The appropriate managing strategies depend on the situation an organisation is facing. Whilst this theory allows for organisational versatility, constant change to the structure, processes, etc. can be challenging. Pros and cons of classical theory and the human relations approach. With a hierarchy of authority, the classical approaches divide complex work into simpler specialisation, which increases the efficiency of employees. However, excessive focus on the specialisation of jobs to increase the productivity often results in the reduction in creativity and innovation, thus promotes monotony. Components of the classical theory, such as procedure design and separation of personal issues from the business, may be beneficial to the organisation in terms of focus. The theory, though, failed to recognise employees" individual differences, which may then result to disengagement and, eventually, turnover (zeiger, n. d. ).

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