Contingency approach is based on the assumption that there is no universal solution (best way) to manage or solve problems. It is characterized by a constant search for appropriate methods of solutions and management for different situations and conditions. It is a creative and system approach.
Donnelly, Gibson, Ivancevich defines the contingency approach as follows: “The contingency approach to management is based on the idea that there is no one best way to planning, organizing and controlling. The managers must search for each new situation the most appropriate way. For example, the planning method that was very effective in one case, can be in other cases extremely inappropriate. Contingency approach is characterized by identifying appropriate management methods for different situations.”
Contingency approach can be applied to various fields of management: