What is contingency theory? What implications does it raise for organization and control? What criticism may be made of it?

... Ac 410 Presentation Group Essay Contingency Theory What is contingency theory? What implications does it raise for organization and control? What criticism may be made of it? Class Teacher: J. Dent Student ID: 200212043 (Jessica Wong) (Christine Li) (Rachel Kwan) 1 Introduction Fisher (1998) suggests, 'Contingency theory is the design and use of control systems which is contingent upon the context of organisational setting in which these controls operate.' Developing contingency model requires a basis on which to divide competitive settings into discrete classes. Contingency theory also says that a better match between the control system and contextual contingency variable is hypothesised to result in increased organizational (individual) performance. It rose in response to universal approach that argues optimal control design applies in all setting and firms. Context and strategy both influence the choice of MCS and structure of the company. The overall fit between the four variables can lead to an increase in the overall effectiveness

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