The contingency theory of organizations has its essence in the paradigm that organizational effectiveness results from fitting characteristics of the organization (structure) to different contingencies such as environment, organizational size and strategy. Overall, various versions of organisational theory emphasize the importance of task characteristics, especially task programmability, to the choice of control strategy. The existence of "people" or social control is as an alternative to control through performance evaluation. In contrast to the classical scholars, most theorists today believe that there is no one best way to organize. What is important is that there be a fit between the organisation's structure, its size, its technology, and the requirements of its environment. This perspective is known as contingency theory (Fiedler, 1964) that contends that the optimal organisation / leadership style is contingent upon various internal and external constraints. It is also known as Fiedler’s contingency theory.
- Definition - What does the Contingency Theory mean? Integrating Performance