describe contingency approach with appropriate example

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There are various approaches of management like human relations, behavioral and contingency approaches to management. In contingency approach, it is believed that the techniques appropriate for a manager to use depend on  a specific situation. This approach suggests that situations vary, the consequences of a particular decision is highly depend on specific situation. Even though for similar kind of issues the managers who adopt this approach repond according to the situation and may not for a standard procedure or standard policy for the same issue. 

For example when a manager faces though competition in the market and reduction in sales, there can be various options like produt innnovation, entering into new markets, acquistions and mergers with the competitors, layoffs etc. Depending on the situation and sales forecasting the manager takes a particular decision. 


Pierce and Gardner (2009), Management and Organizational Behavior, South-Western Cengage Learning, Mason (OH), USA.

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