Contingency approach is concern with the importance of structure as a strong impact on an organizational performance. The contingency highlights all possible means of differentiating between other related forms of organization. The success of company is dependent on the nature of their tasks which are designed to deal. According to the contingency approach the nature of the organization's environment, its size, its technology, the character of its markets, its legal character, its personal and other factors not only faces the organizations with problems but also offer opportunities. Contingency arises from the recognition that environment of organizations constantly changes. Managers of an organization must know and adapt the changes occurring both inside and outside of organizations. This approach enables managers to diagnose each situation so that they can manage it effectively.
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