General Studies · Contingency Approach to Management
The Contingency Approach suggests that stable environments support centralised decision-making, while dynamic environments require decentralisation. What principle explains this?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Centralisation is always more economical, with contingency theory reflecting past practices
- 2Organisational effectiveness depends on matching structure with environmental conditions; changing environments need quicker local decisions✓
- 3Decentralisation depends only on organisational size
- 4Modern technology makes decentralisation suitable for all organisations
Correct answer
Organisational effectiveness depends on matching structure with environmental conditions; changing environments need quicker local decisions
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