Wednesday, July 4, 2012

Contingency factors and their impact Business




Overview, scope and impact

Every student of management science can not ignore the role that factors represent contingencies, as well as what contingency involves the possibility that something happen or not happen. Uncertain or contingent, a proposition whose truth or falsity can be known only by experience or by the evidence and not by reason.

Good management must have knowledge that will foster the knowledge to determine the scope, impact and characteristics of this scenario where you express companies operate contingency factors.

It should be clear on what is the contingency theory, which states, you can not achieve organizational effectiveness by following a single and unique organizational model, ie there is no single better way to organize, to achieve the different objectives of the organizations within a changing environment also.

Jose Ramirez cited that the vision is for contingent ultimately aimed at suggesting outlines organizational and managerial actions most appropriate for specific situations.

The authors defend the contingency theory show a large consensus on common themes such as:

· They are unanimous in rejecting the universal principles of management, there is no better way to manage or organize.

· The work of managers depends on the circumstances or the environment.

· The administrative practice is situational, for which the administrator must develop their diagnostic skills needed to have the idea at the right time.

• The contingency approach is applicable to any number of administrative skills, particularly those that involve behavioral components

Of course, there are so-called external factors and internal

On the first can be stated as Jose Ramirez reminds us that these external factors, according to (Hall, 1973) can be divided into general and specific influences. The first variables are aspects such as technological, economic, legal and political, while the latter are composed of areas that particularly affect the organization, such as other organizations or key individuals. Two of the most important elements that make up the general conditions are technology and the environment (and Weihrich Koontz, 2004), whose exchange with the organization's internal factors makes this take certain forms of structure and behavior to adapt to the external environment .

Meanwhile, we added, indicating good field, such as the size of the organization, its age, property, power and culture, which contribute to the company to develop an effective organizational structure.

Espinoza said definitely, these factors affect different levels of the organization: "The property and the environment are especially important in shaping senior management and the structure of the decision, the age and size are particularly influential on the" midline "and the" management and support staffs "culture has great impact on the design and results of middle management, in relation to the technological support structure and the functioning of the operating base, and finally the technology or technical system clearly affects the structure and action of the flow of locks of the operating base. "

Espinoza also said that internal factors are depending on the following resources:

· Human Resources: They are understood by the human elements required by the scope of operations, taking into account various specialties. The budget and the appropriateness of such internal or external elements depend on a critical and detailed analysis.

· Resources Materials: This includes desks, computer equipment and other various assets will require successful completion of the objectives of the department.

· Investments: The department shall submit an annual budget that is subject to management approval and that in turn is consistent with the scope that are intended.

· Weather: As tasks are approved and collaboration of different stakeholders to become more participatory, it may provide short-, medium-and long-term, on the other hand we can estimate that the department may be attending and solving problems, from the first day.

The fact that when management goes into evaluating the effects generated contingency factor should not ever neglecting aspects such as:

Technology as a context variable. Technology and organizational structure. The technological imperative. The size of the organization. Relationship between size and structure. The imperative of the dimension. Age organizational and structural configuration.

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