5 Assumptions of the Contingency Approach (Management)

1. There is no one best type of organisation which suits all enterprises. That is, different types of structures, processes and approaches are needed for different kinds of environments as well as internal situations.

2. Even in the same organisation different approaches may be necessary to deal with different situations.

3. A large number of variables, including goals, attitudes and sense of values of people, technology and conditions of the market determine the structure, process and over­all approach of an organisation.


4. Management has to develop the requisite diagnostic skill so that they can hit upon the right type of policy at the right time and in the right situation.

5. Adaptability to change, particularly to environmental change constitutes one of the biggest challenges to modern organisations. The organisation should be so designed that it is flexible enough to change with the environment.