There are various forms of contingency theories. In a general sense, contingency theories are a class of behavioral theory that contend that there is no best way to organize a corporation. The organization / leadership style is contingent upon various internal and external constraints. The important ideas are:- There is no universal or one best way to manage. The design of an organization and its
. subsystems must 'fit' with the environment. Effective organizations not only have a proper 'fit' with the environment but also between its subsystems. The needs of an organization are better satisfied when it is properly designed and the management style is appropriate towards work and the people. The effectiveness of a decision procedure depends upon a number of aspects of the situation: the importance of the decision quality and acceptance; the amount of relevant information possessed by the leader and subordinates.
