Contingency Theory


            The contingency theories are the behavioral theory of the class stated that there is no best style when it comes to leading. In short, the leadership style that is effective in one situation may be unsuccessful to the other. As an effect, the leadership decision may encounter difficulties and lead them to the unsuccessful definition. The contingency theory then takes a broader view about the capability of the leader including the contingent factors and the variables within the specified situation. Including in the restricted factors in the theory includes the adaptation to the environment, the size of the organization, managerial assumptions to its employees, the strategies, the differences of the operations activities and the resources, and the technologies.  In the contingency theory there are four (4) major important ideas as no best way in managing, the fitness of the design and to its environment, the subsystem’s fitness in an effective environment, and satisfying the needs of an environment by the management style.


            There is a contingency theory for the leadership wherein the leader’s success is the function of the contingencies which is in the form of the task, the subordinate, and the group variables. The effectiveness and the success of the leadership depend on the behavior of the leader which he has imposed in the certain situation. Including in the leadership contingency theories which are appropriate in the different organizational situations are:


            Fiedler’s Contingency Theory – this is extensively researched theory. In this approach, the behavior model and the trait are being set off and the performance of the group is contingent in the psychological orientation of the leader including the task structure, the atmosphere of the group and the power position of the leader. This simply explains the interaction of the two variables as the favorableness and the leadership style which is the interaction of the leader’s style and its environment.


            The Hersey & Blanchard Situational Theory – In this theory, it add the expansion of the notion of the relationship and the leadership’s task dimensions which can add readiness dimension.


            The normative decision theory is the measures on the effectiveness of the decision procedures depending on the situation’s number of aspects, the importance of the acceptance and the quality of the decision, the amount of the important information that had possessed by the subordinates and the leaders, the acceptance of the subordinates about the autocratic decision so that it can make a good decisions, and the amount of the disagreements to the subordinates in connection to the proffered subordinates.


Incentives


            Incentives are the factors whether financial or non-financial which gives motive to the certain action. For the organization it is commonly given to the employees for achieving the specific goals. The incentives had been done in order to create program which is company wide in order to load points as employees and can reach the performance goals in connection with the business plan of the client. Aside from that, it also allows a healthy environment; it also drives the employees to work properly and consciously, it can also improve the employee’s performance, reduce accidents, give the customer better service, increase the sales, and boost the productivity. The company also advantages as the retain of the best employees, reduce the hiring, the training, and the recruiting expenses, it will also foster a positive atmosphere and environment, motivation of the employees by giving their best unto their work, and keeping the happy customers, due to the combination of the happy customers and happy employees.


            The designing the incentives for the employees may also be an important factor before implementing it. The first one is that the recognition of the employee must derive from the specific goal. The incentive program as well should have a concise and clear memorable format which will decides the encouragement of the qualities.  The support of the management is also essential. And the employees’ incentive programs needs to produce measureable results. Simple thank you is also alright.


            Some tips also that may be helpful for making incentives as not overdoing he rewards, letting the employees to do the work, recognize the employee publicly, and don’t overwork the employees.  In creating a successful employee incentive programs, it is important that the company’s mission and vision are the center of the employees’ goals. It is also advisable that to make the financial incentives be sounds as exciting. This will be able to attract the employees to have a better work. Be fair and realistic when giving incentive so that bias can avoided. It is also paramount that the incentives may be optional so that it is flexible to create an incentive programs. Lastly, the winning employees will be the model so that the other employees will respond favorably.


            The example of this one is the motivation of the trucking company to drive safely as they complete the log in Atlanta and Tampa. Shirts, hats and other stuffs are the incentives to the truck drivers which lead to fifteen percent of the drivers received the monthly awards and the insurance premium had been dropped down by 0,000.   


 


Bibliography:


Contingency Theory. Changing minds.org. Retrieved January 24, 2008, from


http://changingminds.org/disciplines/leadership/theories/contingency_theory.htm


Contingency Theory. Value based management.net . Retrieved January 24, 2008, from


http://www.valuebasedmanagement.net/methods_contingency_theory.html


Formichelli, L. Promotional Product Work as Employee Award and Incentives. Business Card Promotional Refrigerator Magnets. Retrieved January 24, 2008, from


http://www.work.com/employee-incentives-440/


5 Ways to Create Successful Employee Incentive Programs, Travel Vacation Vouchers.


Retrieved January 24, 2008, from


http://www.travelvacationvouchers.com/articles/5-ways-to-create-successful-employee-incentive-programs.html


 


 



 



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