What Are Contingency Factors?

What Are Contingency Factors?

Contingency factors are factors that influence a company's strategic, tactical, operational and contingency planning. The structure of the average company has a plethora of contingency factors.

Contingency factors play an important role in structural decisions, and these factors are also the primary aspects of the contingency theory. Contingency theory is a class of behavioral theory that claims that there is no best way to organize a corporation or lead a company. The theory states that the best course of action depends on the internal and external factors that influence an organization. Leaders should effectively apply their own styles of leadership to the right situation and have the ability to improvise on decision making.