Systems Theory and Contingency Management Theory



Contrast Systems Theory with Contingency Management Theory. WhichIs More Appropriate In Modern Global Organizations? Why?

Contingency management theory states that when the firm managers aremaking decisions, they are required to consider all crucial aspect ofthe current situation while acting on the aspect that are core to thesituation being handled. This approach depends on aspects (Lex,2001).

System theory of management has crucial effect to the managementscience and a level of understanding the organizations. In anorganization, there is consideration of inputs such as money, rawmaterials, people and technologies (Skinner, 2014). All theorganization input must go through certain process to ensure they arewell planned, motivated, organized and controlled. The outcomes thatcould be achieved are high level of productivity to clients andenhanced quality life. These are the main reasons why the systemtheory of management can be the best modern global approach in manyorganizations (Daft, 2012).

How Do Systems Theory And Contingency Management Theory Relate ToToday? Learning Organizations? Why?

The theory are related to the today’s learning organization since,they are models that assist in identifying the best leadership andbest management style that would run the institutions (Woods, 2009).As well, the models have consideration of using the feedbacks or theinformation that is issued by the organization top leaders. Thefeedback may be utilized well to attain success in the learninginstitution (Hong, Chi, Chao &amp Tang, 2003). As well, theinformation sourced may have an effect to the large environment andorganization such as level of influence by the government, economy,technologies and the society. The overall approach will be applicablein the institution among the subsystem such as departments andprograms (Chenhall, 2003).


Chenhall, R. H. (2003). Management control systems design within itsorganizational context: findings from contingency-based research anddirections for the future. Accounting, organizations and society,28(2), 127-168.

Daft, R. (2012). Organization theory and design. New York:Cengage learning.

Hong, K. S., Chi, Y. P., Chao, L. R., &amp Tang, J. H. (2003). Anintegrated system theory of information security management.Information Management &amp Computer Security, 11(5),243-248.

Lex, D. (2001). The contingency theory of organizations.London: Sage.

Skinner, B. F. (2014). Contingencies of reinforcement: Atheoretical analysis (Vol. 3). BF Skinner Foundation.

Woods, M. (2009). A contingency theory perspective on the riskmanagement control system within Birmingham City Council. ManagementAccounting Research, 20(1), 69-81.

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