how do system theory and contingency approach makes managers better at what they do?
How do system theory and contingency approach makes managers better at what they do?
In system theory, an organization is compared to a system. A system comprises of parts and subparts where one part is interdependent on another. Through applying the system theory, manager can be better at what they do. Every level in a firm has executors where their primary job is to assign and coordinate work. All the managers and teams should collaborate and help other so that the organization as a whole succeeds.
For instance, in X organization, there are three teams, a raw data collection team, forecast data team, and report preparation team. Whenever the forecast team does not properly coordinate with data acquisition, which gathers unrelated data, there will be delay in preparation of reports, which can make the client unhappy.
On the other hand, contingency theory is premised on the idea that there are multiple ways for managers to make decisions in an organization based in different factors. The theory advocates for flexibility on the part of managers to evaluate every situation and make decisions unique to those situations. The heads require the managers to stay alert and avoid relying on rules, policies and traditions as the only guides for their choices. To improve productivity and employee morale, the managers are able to understand the importance of the theory and its positive implications at the workplace like providing solutions in specific situations, allowing a macro view of the organization, and increasing managerial discretion.