In simple terms, the contingency approach to management emphasizes that what managers do in practice depends on, or is contingent upon, a given set of circumstances—a situation.39 In essence, this approach emphasizes “if–then” relationships: “If” this situational variable exists, “then” a manager probably would take this particular action. For example, if a manager has a group of inexperienced subordinates, then the contingency approach would recommend that he or she lead in a different fashion than if the subordinates were experienced.40

In general, the contingency approach attempts to identify the conditions or situations in which various management methods have the best chance of success.41 This approach is based on the premise that, although there probably is no one best way to solve a management problem in all organizations, there probably is one best way to solve any given management problem in any one organization. Perhaps the main challenges of using the contingency approach are the following:

1. Perceiving organizational situations as they actually exist

2. Choosing the management tactics best suited to those situations

3. Competently implementing those tactics

The notion of a contingency approach to management is not novel. It has become a popular discussion topic for contemporary management thinkers. The general consensus of their writings is that if managers are to apply management concepts, principles, and techniques successfully, they must consider the realities of the specific organizational circumstances they face.42