Critically Evaluate the Relevance of the Contingency Approach

Jane directly leads a team of heptad HRS and communication employees and five operations cater, and has a strong Influence crosswise the organization. Reporting to the CEO, with both board and ASS reporting responsibilities, Canes role and federal agency at EX. riches Is prominent. As the HRS Director, Jane Is Involved In social organization, employment Issues, human resource allocation. Recruitment and retention decisions and sets the people strategy for the organization (J. Smith, peers. Com, 2011). As she faces many several(predicate) situations everyday in her plow, she heavily relies on the misfortune approach to fore purview.The contingency approach states that organizations are different, face different situations (contingencies) and drive different ways of managing (Robbins, Bergman, Stag & Coulter, 2009 p. 53). The neoclassic, fashional and systems approach to management possible action assumed a universal or 1-best-way of management that applied the similar techniques to all companies. However, experienced managers k at one time that non all people and situations merchant ship be managed exactly the same. Thus the contingency approach to management suggests that what managers do In practice depends on the situation.However, the contingency approach is not without its critics. A major problem is that it often is occasiond as an excuse for not acquiring musket ball friendship about management, but fitting lets managers bugger off dados decisions. There are four popular contingency inconsistents organizational size, riotousness of trade technology, environmental misgiving and individual differences (Robbins et al, 2009). In this essay, we will discuss how Jane at EX. Wealth manages each of these variables. The first variable In contingency management surmisal is organizational size.The way Jane manages her direct team of seven, Is very different to how she is seen as a manager across the 700 provide at EX. Wealth. For exampl e, Jane holds weekly meetings with her team to advise of accompany-wide news and Information from her meetings at CEO and control board level. In relation to Skates human skill (Katz, 1974) she Is an effective communicator In tans arena. However, one AT ten roles AT newer team Is to teen disseminate this nurture through their business groups and across the organization, so that all employees are cognisant of sundry(a) company-edicts and general goings on .They did this through posting memos in breakout rooms, which were seldom noticed. Thus Jane (and in turn, her team) was perceived as having poor human skills as the information coming from the HRS team was communicated across the larger organization ineffectively. Jane had to salmagundi her management style in relation to these larger communications and a company wide intranet was nonplused as a result. On it, all important(predicate) employee notices were communicated as well as information about the company and its vers atile activities. 0. Smith, peers. Com).Employees were then able to access the information as it suited them, and remained just as informed as those in her direct team aft(prenominal) their weekly meetings. Another variable in contingency management theory is the riotousness of task genealogy. Routine Technologies are those that have little variety and use objective, standardized procedures. They are mostly associated with a mechanical structure and processes, with formal rules and rigid management processes (Daft, Murphy & Wolcott 2010). An example of this at EX. Wealth is in the Operations Department.Their role is to scan all incoming mail, forward it to the chasten person and file the hardcopy. Jane finds managing this department is relatively straightforward. She sets formal Kips at the crop up of each year and the Senior Operations Officer ensures that the team meets their targets. In effect, Jane is using one of Integers Managing on Three Levels (being, information) techni que (Integers, 1994). Non-routine technologies, however, have noble task variety and experience and technical knowledge are employ to perform the work and solve problems.Using Woodwards research, organizations with more non-routine technologies are more likely to have organic structures (Robbins et al, 2009) Similar to many companies in finance, EX. Wealth has traditionally had a very bureaucratic structure based around course of instruction of labor, central controls and a strict hierarchy almost Weepers ideal bureaucratic structure. Robbins et al, 2009) with the CEO at the top and the majority of staff (in processing and telephone centre roles) making up the bottom. Divisions were created by Job role and geographics and the machinations of the firm had little to do with the head office and their goals.However, since the challenge of world(a) Financial Crisis (SGF) companies, particularly in financial fields, have had to be ectomorphic and more able to change and faster at doing it. EX. Wealth has started to develop a flatter management structure, with a matrix- reporting style and business units connecting with each other (Chapman, 2001). For instance, instead of all human Resources (HRS) consultants sitting in concert in an HRS team environment, those dedicated to a particular business group, now live with their business, as business partners. Although they form part of Canes team, they also have a reporting line through to their business manager.Echoing Chessmans (2001) work, Jane feels that this new organizational structure is more desirable as interpersonal relationships are developed and knowledge and understandings are shared between the HRS team and the business. 0. Smith, peers. Com) I en Tanta variable Tort ten contingency approach to management Is environmental uncertainty. Because uncertainty threatens an organizations effectiveness, managers will try to minimize it. (Robbins et al. 2009) Operating in a post-SGF world, EX. Wealth is facin g uncertainty on numerous levels. There are regular threats from competitors and the market is still Jittery and unpredictable at best.EX. Wealth has a large insurance division that has recently been onset by claims from the various natural disasters that Australia has recently faced. In short, there is not a mete out about EX. Wealths environment that is certain. According to contingency theory, stable environments suggest mechanistic structures that emphasis centralization, standardization, and specialization. (Robbins et al. , 2009) Unstable environments suggest organic structures, which emphasis decentralization to happen upon flexibility and adaptability (Robbins et al. , 2009).EX. Wealth is effected by a rapidly changing and unstable environment and must evolve to ensure that it is able to work efficiently through any uncertainty. An example of this was highlighted with an unprecedented retention electrical outlet with the immature clerks in the Perth offices of EX. Wea lth. Due to the mining boom, these staff were being lured by from EX. to earn significant amounts functional in the mines. As hiring and retraining staff is an expensive exercise (and EX. Wealth was in no position to delay the salaries on offer), the company offered an extended leave without pay program for Junior employees who had shown potential.This gave them time off to work in the mines and then they were able to fork up to their previous roles (Smith, peers. Com). The final variable for the contingency approach to management thought is that of individual differences Individuals differ in terms of their desire for growth, autonomy, tolerance of equivocalness and expectations (Robbins et al, (2009) p. 4). This final variable, makes it clear why so many found the classical theories of Payola and Taylor so limiting.There are Just so many variables that could apply to motive and leading individuals, that no classical theorist could cover them all. As Human Resources Director J ane Smith leads discussions at EX. Wealth on the remuneration levels of employees. cosmos a company in financial markets, employees who work in this assiduity are usually attracted by money. Thus, it has always been the main motivator for staff and all employees are eligible for performance related pay and company bonuses. However, since the SGF the focus on money as the main motivational beak has been lessened.Other benefits such as more flexible working practices (either with hours, or working from home), study support or the ability to buy extra yearbook leave have also been seen to highly motivate employees (Smith, peers. Com). As Mitchell and plate (1999) argue money is an important motivator, but managers need to understand individuals their attitudes, beliefs and behavior before it will act as an effective motivator. In analyzing Canes work as the Human Resources Director of EX. Wealth, it can be aid that she heavily relies upon the contingency approach to management.