Showing papers on "Contingency theory published in 1987"

New Approaches to Effective Leadership: Cognitive Resources and Organizational Performance

Abstract: ANTECEDANTS AND BASIC ISSUES: Some History - Where we are Coming From Stress Experience, Tenure and Leadership Performance Leadership and Intelligence THE CONTIGENCY MODEL AND DIRECTIVE LEADER BEHAVIOR: Situational Control The Leader's Personality and the Least Preferred Co- worker Score The Contingency Model - Warts and Beauty Spots The Contingency Model, Job Experience and Tenure COGNITIVE RESOURCE THEORY: Cognitive Resource Model Stress, Cognitive Resources and Performance Directive Behavior and Intellectual Abilities: Preliminary Tests of Cognitive Resource Theory Directive Behavior and Cognitive Resource Utilization: Summary of Empirical Findings Cognitive Resource Theory and the Contingency Model Critical Task Requirements and Cognitive Resource Utiliza tion Finished Business and Unfinished Business References Appendixes Cited Studies Index.

Strategy and structural adjustment to regain fit and performance: in defence of contingency theory

Abstract: Comparative, contingency approaches to organization structure have been criticized as being inherently static. The present article argues that functionalist theories and quantitative methods can explain structural change. This is exemplified by a diachronic enquiry into strategy and structure. Several propositions about organizational dynamics relating diversification, reorganization and performance are supported. However, the notion of contingency adjustment to structure to attain match as a frequent alternative to structural adjustment to contingencies is not borne out. Neither of the two prevailing theories of structural change, ‘contingency determinism’nor ‘strategic choice’, is completely adequate and a third formulation is advanced: that of ‘structural adjustment to regain fit’. While structural-functional enquiry into organizations using comparative quantitative methods has yielded information about structural statics, the contribution to knowledge of dynamics seems more problematic. This article seeks to record that structural-functionalism does inform the analysis of organizational change and to show that quantitative contingency approaches can illuminate change if the theory used in the analysis is formalized properly. This involves the partial abandonment of both of the main prevailing theories of structural change: contingency determinism and strategic choice. In their place this article offers as a potentially more fruitful model the structural adaptation to regain fit formulation. Within this the role of performance is shown to be important. The advantage of this framework is demonstrated empirically by means of an examination of the relationship between strategy and structure.

Toward a contingency theory of compensation strategy

Abstract: This paper develops several propositions that link compensation strategy and the effectiveness of the compensation systenm. The underlying argument is that effectiveness at realizing intended pay strategies depends significantly on the existence of a match between compensation strategies, organization and environment. These propositions are tested in a samiple of 33 high.tech and 72 non-high tech firms or business units in the Boston Route 128 area. Respondents are nmanagers responsible for compensation policies in these firms or business units. The relationships among compensation strategies, organization characteristics and environment are explored. The findings nmay help researchers conceptualize, and practitioners manage, the relationship between reward processes and strategy in organizations. The consistency with which systematic relationships have been discovered between organizational characteristics and strategy at the overall firm level would lead one to expect the existence of a similar relationship with the organization's compensation system. To date, very little work has been done in developing a contingency theory that ties the pay system to the organization's operating objectives and strategies. This is surprising in view of the fact that labor costs comprise more than half of total costs in most organizations, and that pay systems are pivotal in terms of the motivation, attraction, and retention of human resources (Lawler, 1981). As argued by Milkovich and Newman most compensation research tends to emphasize techniques 'where the mechanics become the focus, ends in themselves . . . the purposes of the pay system are often forgotten . . . to date we really do not know enough to recommend [pay] policies under different conditions' (1984: 11). The purpose of this paper is to take some first steps in the development of a contingency theory of compensation strategy at the orgainizational level. The decision to concentrate on the macro

Generic strategies: An empirical investigation of typology validity and strategy content

Abstract: Field research was conducted in 34 Canadian companies/business units to determine the validity of a generic typology of strategies and the content of each type. Two questionnaires, secondary data, and interviews were used to identify strategic types and explore their strategic characteristics. A typology of generic strategies was proposed and tested, and comprehensive descriptions of their characteristics were developed. The findings provide support for a methodology for measuring and identifying strategy, a basis for research on contingency theories of strategic management, and a practical tool for managers to identify and communicate strategic choices and the implementation issues involved.

Structural Contingency Theory: A Multivariate Test:

Abstract: This paper reconsiders structural contingency theory. It presents a discussion of the methodological underpinnings which surround the research activities of this theory. Two research strategies are reviewed. They entail a multivariate examination of the structure-environment-effectiveness relationship. One of these strategies examines deviations from ideal structural profiles, while the second one involves a canonical correlation analysis between structural and environmental attributes for low and high effectiveness units. The results from field research in a commercial bank are used to illustrate the two analysis strategies. They indicate that effective organizational units show strong structure-environment interrelationships and lead one to conclude that there are indeed effectiveness-induced constraints on the choice of an organization's design or its environment. The methodological and conceptual implications of the findings are then discussed.

Contingency Theory and Culture: A Study of Matched English and the Indian Manufacturing Firms

Abstract: This paper reports on some of the findings of a cross-national study of organizational structure and management style conducted in England and India which, among other things, examines the validity of the model advocated by the proponents of the contingency perspective. The model, although it gains considerable support from some of the findings, is found to be inadequate in many respects. Differences are found between firms in the two societies and in relationships among variables that are not explicable by the conventional contingency model, but are consistent with differences in socio-economic conditions and with employees' cultural traits. The English and Indian cultures are contrasted.

Capital budgeting techniques and firm specific contingencies: a correlational analysis.

Abstract: By combining analytic developments in the financial theory of capital budgeting with contingency theory, an empirically testable contingent theory for DCFT (discounted cash flow techniques) was constructed. This theory was tested by correlating an effectiveness measure for DCFT, based on stock return data of the sample firms, with hypothesized contingent variables, measured via interview and questionnaire. The results indicated positive correlations between the effectiveness of DCFT and predictable environments, the use of long-term reward systems, and the degree of decentralization of the capital budgeting process.

Small Business Concepts and Their Relationship to Performance: A Field Study of Retail Service Stations

Abstract: SMALL BUSINESS CONCEPTS AND THEIR RELATIONSHIP TO PERFORMANCE: A FIELD STUDY OF RETAIL SERVICE STATIONS Why are some firms successful and others not? This question has generated many academic theories and pragmatic prescriptions from experts in the field. Academicians and practitioners alike generally acknowledge that the specific strategies for success used in one firm can rarely be applied directly in other firms, even within the same industry, because every firm is unique. Despite similar circumstances and environments, the unique characteristics of individual firms make it difficult to develop prescriptions based on "if-these-conditions, then-this-performance' analyses. At one extreme is the case study; at the other, the use of a large heterogeneous data base such as that compiled by the Profit Impact of Marketing Strategy (PIMS) study. Prescriptions derived from case studies can be too narrow; those derived from very large databases can be too generic. Hatten, Schendel, and Cooper addressed the latter problem by stating "an emphasis on homogeneity (of the sample) focuses on the selection of more "like' data--a step which reduces the ability of the researcher to generalize from the results, but which increases the confidence in the estimated parameters.'1 Hofer goes further by proposing a theory that deals with homogeneity at the business level, suggesting that the development of business-level strategic theory requires a smaller, less complex set of variables, the identification of the lowest common denominator, and recognition of the variables' impact on performance.2 In Hofer's view, such a theory will improve productivity in firms both large and small by improving their strategic choices. 1 K. J. Hatten, D. E. Schendel and A. C. Cooper, "Heterogeneity Within an Industry: Firm Conduct in the U.S. Brewing Industry, 1952-1971,' The Journal of Industrial Economics (December 1977), pp. 97-112. 2 C. W. Hofer, "Toward a Contingency Theory of Business Strategy,' Academy of Management Journal (December 1977), pp. 784-810. Hofer's theory thus specifies a need to identify variables thought to be related to performance. Theory and practice meet when managers attempt to identify those variables that have the greatest effect on performance for their own business and competitive environments. Several conceptual views, with a few selected bibliographic sources, are shown in table 1. Clearly, numerous other concepts could have been chosen, but those presented are based on the experience of the authors with retail service station businesses. The first set of variables thought to be related to business performance have to do with the social and psychological characteristics of the entrepreneur (e.g., age, education, experience, willingness to work, and ability to deal with consumers and employees). The entrepreneur's planning characteristics are also hypothesized to be related to the success of the organization. One example is the time spent on planning prior to opening the business, especially on functional areas such as financing, personnel, product line selection, and inventory management and control. Third, the equity base of the entrepreneur is also widely reported as a requisite for a successful small business. It is generally acknowledged that wide variation exists in the type and amount of equity required for different businesses. However, most bankers follow the rule "the more you have, the more likely you are to be successful,' because the entrepreneur's "staying power' is increased. A fourth set of variables related to performance is customer service characteristics. These variables are operationalized in this study as the degree to which attendants check for complementary sales opportunities while servicing customers. A fifth concept frequently mentioned in connection with performance is control. …

Self-schemata, social roles, and a self-worth contingency model of depression.

Abstract: Research in social cognition suggests that the self can be conceptualized as a cognitive schema that is involved in the encoding, organization, and retrieval of personally meaningful information. The application of this self-schema model to depression is presented here, along with an emphasis on self-schema distinctions at various levels of depression. Also considered is the nature of the self-schema in individuals proposed to be cognitively vulnerable to depression. Following this, it is argued that the self-schema model of depression would benefit from the inclusion of social roles as an explicit and fundamental aspect of self. Accordingly, the literature implicating role loss and role strain with the onset of depression is integrated with the self-schema model. This integration is considered further in terms of a self-worth contingency model of depression. In this contingency model it is proposed that a cognitive vulnerability to depression may be manifested in certain individuals as a propensity to evaluate self-schema role performance according to excessively rigid and perfectionistic criteria. Thus, depressive symptoms may be viewed as a result of diminished self-worth, stemming from either actual or perceived self-schema role disruptions. Further theoretical and empirical implications of this model are then considered.

Managerial strategies in local government

Abstract: The organizational arrangements of local authorities are known to vary. Explanations of the variation observed have usually been set within the contingency theory perspective. The present paper utilizes a different approach, examining how far structural variations are a consequence of differences in strategic style. The concept of strategic style is discussed and applied to data from English local authorities. Results indicate that strategic style does influence local authority structural arrangements.

Editorial Introduction: Organizational Transformations

Abstract: The general study of organizational change and the specific development of the concepts of transformation and transition has come about in a way which is typical of organization theory. On the one hand there were increasing theoretical and methodological criticisms of the 1970s 'state-of-the-art' knowledge with its essential basis in a static contingency theory. The introduction, inter alia, of theoretical concepts such as strategic choice, interpretive schemes, power, crisis and enactment gave a more dynamic feel to organizations. The continuing plea for longitudinal and historical research suggested not only that new insights were to be gained from such an approach, but that the nature of organizations demanded a proper time focus.

The Parameters of Network Intervention: A Social Work Application

Abstract: Parallel to the recent expansion of knowledge about social networks and their implications for physical and emotional well-being, there has been a move by social policymakers and social work practitioners to engage actively in network interventions. These interventions are employed, for the most part, independently of theoretical developments in this area. This article builds on a review of network theories to present an analytical paradigm. By pairing the nature of the task to be met, as prescribed by contingency theory, with network accessibility, the paradigm aids in assessing the appropriateness and efficacy of a given intervention.

An assessment of the contingency theory of mis

Abstract: The purpose of this paper is to define and critique the use of contingency theory in the field ofManagement Information Systems (MIS). The existence of such a theory is demonstrated through adetailed review of the MIS literature. The development of contingency theory in MIS is compared tothe development of Organization Theory. The developments in the two fields have been remarkablysimilar and the field of MIS can benefit from the experiences of organization theorists. We arguethat since MIS is at an early stage of development, it is now repeating some of the unproductiveassumptions and lines of development of contingency theory.The conclusion from this analysis is that the contingency theory implicit in MIS research isinadequate. Progress in the field has been hampered by the adoption of a naive meta-theory and anarrow research perspective. This has resulted in highly mixed empirical results, a prematurequantification strategy, and ill-defined concepts of performance and fit.A series of recommendations for improving the theoretical basis of MIS are given. Theserecommendations include relaxing the assumptions that constitute the naive meta-theory of acontingency theory in MIS. A more subjectivist, less functional, less unreflexive and lessdeterministic approach is advocated. In addition, changes in research methodologies are recommended.An increased emphasis on training in case study methodologies, longitudinal research andethnographic approaches is suggested.

Editorial introduction: organizational transformations

Abstract: The general study of organizational change and the specific development of the concepts of transformation and transition has come about in a way which is typical of organization theory. On the one hand there were increasing theoretical and methodological criticisms of the 1970s 'state-of-the-art' knowledge with its essential basis in a static contingency theory. The introduction, inter alia, of theoretical concepts such as strategic choice, interpretive schemes, power, crisis and enactment gave a more dynamic feel to organizations. The continuing plea for longitudinal and historical research suggested not only that new insights were to be gained from such an approach, but that the nature of organizations demanded a proper time focus.

Planners, Uncertainties and Methodologies

Abstract: A problem which confronts those involved with planning in all settings is the choice of a methodology to guide the planning process so that it may be effective. There have been numerous attempts to identify those factors in planning situations which influence the style of the planning process and the behavior of planners. The resulting contingency theory is essentially descriptive and recently efforts have been made to build upon this foundation and provide a prescriptive contingency theory of planning. This work is extended here by providing a contingency framework which associates relevant distinctions in planning situations with significantly different levels of uncertainty in the mind of a planner. The framework is able to act as both a descriptive and a prescriptive tool for the analysis of planning situations and the determination of appropriate planning methodologies. An example is given to illustrate its use in each of these modes.

Models of strategic decision-making

Abstract: In this chapter we set out to explore a range of different approaches to strategic decision-making. We examine incremental models, a decision-process model and a number of studies which focus more on the content of strategic decisions. We end the chapter with some suggestions for the development of a contingency theory of strategic decision-making, but first of all we consider some criticisms of rational approaches to strategy-formulation.

“Closing Down”: A Classification of Creative Decision‐making Aids

Abstract: It has been recently argued that managers do not use creative problem‐solving techniques because of concerns about managing the ideas produced This paper examines five different ways of “closing down” during creative problem solving, and suggests factors which influence the selection of a technique: voting is the preferred choice for consensus‐seeking; clustering is a means of transforming data qualitatively; hurdles provide a means of managing data arriving over disparate time periods; weighting is best reserved for standard and quantifiable data; while gut feel can deal best with decision making involving “fuzzy” data A psychological rationale for the use of the various techniques is proposed, and a contingency model of decision making developed which may give managers confidence to experiment with the creative problem‐solving mechanisms for generating options, because of increased knowledge of effective mechanisms subsequently for closing down those options