The Importance of Contingency Theory

Introduction

The characteristics of the current business scenarios in which enterprises operate, where their role is becoming more proactive in terms of gain, achieve, thanks to a competition for which they were prepared to offer their best products with the seal of a quality that turns to advantage, leads to consider the scope, role of contingency theory, an aspect that should be considered by management.

Hence the importance of having it in mind, its scope, impact everything involved in such a way that takes into account in structuring the ideal organization to perform successfully in the scenario in which they operate.

The topic is relevant, especially for the case of Venezuela, where the environment is turbulent, risky, uncertain, especially when the factors of contingency, their variables, as the case of State intervention by their actions have had a significant impact on the structure of Many companies, in their organizational behavior.

Overview, history, beliefs, content

It is known that Woodward introduced because of his studies on this topic called Contingency Theory, in which the effectiveness of the organization stems from a correspondence between the position and structure.

It has been said that the word means something uncertain contingency or contingent, which may well happen or not. It refers to a proposition whose truth or falsity can be known only by experience or by the evidence and not by reason. Because of this contingency approach marks a new stage in the General Theory of Management.

Heisbell Espinoza reminds us that the word contingency is defined by (Bueno Campos, 1996, p.168) as "any external variable, environmental, or force surrounding influential factor affecting the effective design of the organization and its behavior, directly controllable in principle "by means of a relationship if (cause) ... then (effect). However (Morera Cruz, 2006, p. 8) says it is "somewhat uncertain and eventually may happen or not, often represents a proposition whose truth or falsity can be known by experience or by the evidence and not for the reason" . This is why theorists of this approach argue that appropriate organizational models appear to know the characteristics of the external environment of the company and not from previous theoretical considerations.

There is a precedent, which Contingent or situational theory born in the late fifties, isolated empirical research emerges, carried out in order to verify the models of effective organizational structures, from which we derived a new approach to business, that fits comments (Guizar, 1999) to changes in the environment presents, through the identification of variables that produce the most impact, where the structure and function depend on the adaptation and interaction with the external environment, explaining that there is a functional relationship between environmental conditions and appropriate management techniques for achieving the objectives, stating that there is no single theory to solve organizational problems, breaking according to (Soldevilla, 1972, p.412) (...) "with the conceptual schemes of administration "(...) traditional.

Of course, there antedecentes, Chandler, analyzing, that there are companies that adapt their structure to the business strategies, deducing that U.S. organizations were determined by market strategies over the past 100 years, explaining it by a historical process. Meanwhile Thompson in the year sixty-seven relates to the organization with the environment in an open system logic and organizational rationality.

Following in their input and analysis Lawrence and Lorsch who claim that the main problems are organizational differentiation (division into subsystems) and integration (unification and coordination of efforts), inferring with this by (Kenyon, 1989) that the company that suit the characteristics of the environment, will be closer to success.

There is no denying therefore that the business structure can change the effect of variations that can be raised from the position of its factors in the organization "(...) (Soldevilla, 1972, p.412), just tell us Espinoza, the analysis of these factors explain the differences between the organizations and help to identify the contingent variables affecting the institution.

This requires two steps according to (Bueno Campos, 1996), the first study of the organization from a macro-organizations, ie the structural design and micro-organizations from the behavior, processes and functions, the second identifies the variables contingenciales, which he calls the external causes and context of change that are the source or cause of existing conditions, all with the aim of establishing the influence of these on the Macro and microorganization, explaining the organizational reality and how it can get competitive advantage of the variables that affect

Characteristics of Contingency Theory

It shows respect, which focuses its spotlight on the company's external environment, giving priority to what happens outside the organization before digging into the internals of the organizational structure. This approach seeks a balance between the two contexts, where the organization gets the most out of their environmental circumstances to ensure its success as a company.

It considers external factors which can be divided, according to (Hall, 1973), general and specific influences. The first variables are aspects such as technological, economic, legal and political, while the latter are composed of areas that particularly affect the organization, such as other organizations or key individuals.

Two of the most important elements that make up the general conditions are technology and the environment (and Weihrich Koontz, 2004), whose exchange with the organization's internal factors makes this take certain forms of structure and behavior to adapt to the external environment .

Espinoza points out that another of the fundamental principles contingency theory distinguishes from other approaches is their tendency to establish an ideal type of organization for all circumstances. In this regard, (Dávila, 2001, p 225) argues that "or situational contingency approach argues that the organizational structure and administrative system depend on or are contingent on environmental factors, organizational, task and technology ".

From the above it is understood that the external aspects of the organization act as independent variables on the modes of internal organization of the company, which are dependent variables of the first. This relationship, however, is not established as a cause-effect, but as a decision making organization leaders on the choice of the most effective alternative to external circumstances

Definitely Contingency theory posits that there is a functional relationship between environmental conditions and appropriate management techniques to effectively achieve the objectives of the organization. In this functional relationship, the environmental variables are considered independent variables while management techniques are used as dependent variables.

Jose Ramirez also gives us that the contingency theory highlights the effectiveness of management actions undertaken in a situation and fails in some way to standardization. So necessarily the technology, size and environment are essential factors in a contingency plan because a small difference in the verification of the initial pattern companies make the right choice of technology in their products and processes and this follows in turn the structure gives the organization through the differences and technology categories, so it is possible to ensure the proper management of resources and avoid waste that would otherwise threaten their survival which is greatly influenced by the environment

Conclusion

The contingency approach spans, there is no single optimal way to organize and manage that is applicable to all companies, but it all depends on environmental conditions where they develop their activities. Hence the importance of management to determine the effects of the external causes and affects the structure of the business so be prepared to promote actions to be taken into account for its operation

References

Bueno Campos, E. (1996). Business organization: structure, processes and models. (1aed.). Madrid: Ediciones Pyramid. Kan. (2003, December 7). Contingencial Theory. Retrieved on December 17, 2005 Different Web pages: monografía.com.

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