Management Essay Example: Complex Organizations and Contingency Theory

Published: 2022-06-03
Management Essay Example: Complex Organizations and Contingency Theory
Type of paper:  Essay
Categories:  Organizational behavior Strategic management
Pages: 7
Wordcount: 1747 words
15 min read
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1). Evolution and Change of Human Thought about Complex Organizations over Time

Complex organizations are types of organizations that compose a reasonable number of employees, many rules, basic units, processes, and numerous strategies (Basile & Caputo, 2017). Complex organizations can also be described as the object-oriented, socially-constructed and boundary upholding systems of human undertakings. These descriptors have remained the primary distinguishing factors for such firms. They have, for long, caused a significant level of complexity in an organization generally. For an organization to survive, it must undergo some evolution. This enables them to have a competitive advantage over other organization that has not undergone evolution process (Pollack, 2015). Organizational theory evaluates various organizations in order to determine the organization's structures and patterns that these particular organizations use to find solutions to the challenges they face during their day to day activities (Brown & Roloff, 2015). The theories assist in finding patterns and structures the companies use to meet the expectations of stakeholders, maximize productivity and efficiency.

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The Changing Perception

Pollack (2015) argued that the human thinking concerning complex organizations has changed over time whereby individuals tend to embrace a new phase in the evolution of such firms. The idea of complexity currently tends towards extinction whereby new concepts are being introduced to ensure that various organizations. It, therefore, follows that the complex of "complex organization" will eventually cease to exist. The evolution of firms is most likely to create considerable opportunities in most associations, which ensure that managers enjoy a significant level of flexibility.

The Revolutionary Phase

According to Basile and Caputo (2017), the achievement of the revolutionary phase in the evolution of the complex organization can be associated with the changing perception of the society at large. The society is now influencing companies to be able to accommodate many approaches to management or leadership. Brown and Roloff (2015) added that this is meant to give the various line managers an easy task since they should not be expected to use one specific way to manage. The revolution provides that any level of management involves evaluation of situations and consequently make unique decisions out of them. There is, therefore, no guaranteed aspect of decision making out of a situation since there is no fixed structure of criteria to be considered for such exercises. This phase is associated with limited rules which do not strain individuals. The perception has now shifted to the description of an organization of an open system whereby the methods of accomplishment are situational.

Change in Thoughts Regarding Management Aspects

The given stage of evolution requires managers to be alert while undertaking different management practices. The strategy is used to avoid the reliance on the guidelines which bare rules traditions, and policies. On the same note, it is important to note management guidelines are becoming less important part of the organization because the creativity of managers is accepted and is considered to make the basis of their work. A manager has many actors to consider in the event of his job-related task which is the main reason for making reference to a pre-established list of guidelines (Basile & Caputo, 2017). Furthermore, management tasks and the subsequent accountability give the management team the opportunity to enjoy an open system. In the course of embracing this change, it is believed that the managers are trying to take care of the ultimate consequences to the organization. Management approaches might, therefore, be unique for every activity even within the same organization. Evolution of complex organizations is still ongoing and the future might record no complexity at all based on the current trends of perception.

2). The most valuable Theory for Understanding Organizations Today: Contingency Theory

Contingency theory contemplates conflict, in contrary to the other related theories which rather avoid it. Chandler proposed in the year 1962, that a firm should behave in a way to adapt to the adjustments within its sphere for it to be more effective (Pollack, 2015). Managerial staff should also be granted authority at all levels, as this will enable them to make resolutions on their realm in a highly unstable environment. Based on the arguments of the theory, all the modules of firms are interlinked and altering one element can affect the other modules (Basile & Caputo, 2017). According to Pollack (2015), system thinking comprehends how our activities within the organizations shape our reality. The based on the idea, there is the existence of nonlinear relationships between the variables. Moreover, small changes in one variable may probably result in a huge effect on other and a big change in another variable may have a significant impact (Brown & Roloff, 2015)

The theory can be used by organizations to match their main objectives, to understand the organization in the modern age, match business sphere and the workforce of an organization with the firm's structure that is very viable and capable to meet problems the organization faces (Basile & Caputo, 2017). One of the most valuable theories for the understanding organization today is contingency theory. Unlike the neoclassical and Classical theorists, Contingency theorists viewed divergence as unavoidable, but manageable (Brown & Roloff, 2015). This theory concludes that every firm adapts to their perspective business sphere in the absence of formal structures. The manner an organization adaptation handles issues facing the business majorly depends on the knowledge and experience of the organization top managers and esteemed employees (Modaff, Butler & DeWine 2008).

According to Basile and Caputo (2017), flexibility in inscribing variations in a marketplace and sensitivity to customers wants. For instance, if in case you are among the team members of business professionals having experience in their discipline of activity, a formal organization structure will always get in your way. According to Pollack (2015), this makes a contingency organization theory the most effective choice. Contingency theory highlights the significance of both the situation and leader's personality in which that leader carry out their activities. Additionally, contingency theory prioritizes on distinct situational factors that have an effect on the relationships between the dependent and independent variables, where independent variables (denoted as x) are the cause of the change in the dependent variable, while dependent variables (denoted as y) are a response affected by an independent variable. The theory illustrates that there is no exact science to organizational conduct (Modaff, Butler & DeWine 2008)

The best way to solve employees' challenges and to structure a corporation is not always available, and therefore, this all depends on the situation (Basile & Caputo, 2017). For instance, Cheapo Toys Company has been on the constant trial to perfect their company by analyzing different variables that have effects on employees (Modaff, Butler & DeWine 2008). From this example, it shows, therefore, that every organization needs to make use of an idea of the trial to find out what kind of variable deliver the desired results (Pollack, 2015). Leadership and motivation are examples of many independent variables of the contingency theory, similarly, absenteeism and turnover, and productivity can be considered examples of dependent variables (Brown & Roloff, 2015).

In conclusion, there is no one optimal way in contingency approach spans that is applicable to all the company to enable them to manage and organized the organization (Modaff, Butler & DeWine 2008). But all rely on condition of the environment where the organization carries out their activities (Basile & Caputo, 2017). From the above-included information, I, therefore, find contingency theory to be the most valuable for understanding organizations today.

3). Pertinent Organizational Behaviors That Demonstrate the Value and Appropriateness of the Contingency Theory

Situation-based solution to problems as practiced in the Cheapo Toys Company

Since there is always no appropriate way to solve the problem in contingency theory, resolution towards all the challenges depends on the current situation (Basile & Caputo, 2017). Cheapo Toys Company has put into several trial idea to perfect their organization by scrutinizing diverse variables having effects on their employees. The company wanted to find out what affects the productivity of the workers, their turnover, job satisfaction and their absenteeism.

Additionally, they would like to find ways of increasing the daily productivity of the workers that will result in the increase in productivities of toy s in general (Modaff, Butler & DeWine 2008). The company also needs to reduce turnover. Cheapo Toys Company constantly experiences absenteeism of workers despite this; the company still has to improve employees' job contentment, this is to enable the company to maintain profits and sales. In regards to the contingency theory, independent variables will assist in improving the problems that Cheapo Toys organization is facing.

The company, therefore, uses the theory to address many issues concerning human wants. Paying attention to the workforce in a non-threatening and friendly environment results to an increase in the production output, however, this has got numerous challenges it represented a manipulative attitude towards workers (Basile & Caputo, 2017). A theory which stated that organizations are systems of precisely coordinated undertakings was later developed. According to this theory, the organization's victory was connected to the ability of managerial staffs to establish a cohesive business sphere (Brown & Roloff, 2015). Additionally, management's team authorities were to divest from the assistant's acceptance. A model of limited rationality that stated that employees could answer doubtfully to administrative attention was proposed later (Modaff, Butler & DeWine 2008).

Encouraging leadership at all levels as practiced in Wal-Mart Company

According to Basile and Caputo (2017), the company is currently working on improving leadership skills at the level of the organizational structure. This is a strategy which is used to intervene to the problem experienced by the organization a few years ago. Initially, the organization had the major mission of meeting the customer's needs therefore low prices were offered as a way of meeting their objective. However, the stability of the company experienced significant problems related to the continuity of the other activities. Besides, the cheap services would mean less superior value of services o some customers.

With the realization of the issue in question, the need for the management skills in the various levels of the company is to enable managers to establish pricing strategies depending on every situation. The company is trying to avoid the influence of traditions in offering services to the customers. Every aspect of pricing strategy is currently taken to be situational. Managers of the company, therefore, have a role in ensuring that sufficient data regarding the knowledge and perception of the customers about their services are accessed. A proper analysis of the data is now used as the main basis of the determination of the services that the company offers. This is a considerable level of flexibility situations of pricing are undertaken individually.

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