This is another modern approach that has attempted to integrate finding of other perspectives. They believe that it is impossible to select one way of managing that works best in all situations. Their approach is to identify the conditions of a task, managerial job and person as parts of a complete management situation and attempt to integrate them all into a solution which is most appropriate for specific circumstance.
The manager has to try systematically to identify which technique or approach will, in a particular circumstance or context, best contribute to the attainment of the desired goals.
The contingency approach may consider, for policy reasons, that an incentive scheme was not relevant. Also the expense of a job enrichment scheme may rule this out. The complexity of each situation should be noted and decisions made in each individual circumstances.
It should be borne in mind that the contingency approach is not really new, that emphasized the importance of choosing the general type of management best suited to a particular case.
The contingency approach seeks to apply to real life situations ideas drawn from several of management thought. Different problems and situations require different approaches and no one approach is universally applicable. Manager must seek to identify the approach that will serve them best in any given situation, so they can achieve their goal.
It is important to note that the contingency approach stresses the need for managers to examine the relationship between the internal and external environment of an organization.
The system approach to management emphasizes that relationships between various parts of an organization are interlocked. The contingency approach has emphasized this idea by focusing on the nature of such relationships.
Criticisms of the contingency approach are that it has little theoretical foundation and is basically intuitive. This can be countered by noting that the contingency approach examines each situation to find out its unique attributes before management makes a decision. Earlier approaches tended to consider universal principles which were not always applicable to specific situations.
Managers today are advised to analyze a situation and find appropriate combination of management techniques to meet the needs of the situation.