Scott (1981, quoted in Bryman 1986, pp. 170-1) “has observed that, the only difference between the universalist and the contingency approaches is that the former tended to conceive of the organization as a closed system. The contingency researchers, by encapsulating contextual factors like the environment and technology within their purview, viewed the organization as an open system.” Basically the contingency approach is different from the universal approach because it views the entire environment and market situation to make decisions instead of just focusing on the inside of the company. The contingency approach helps boost organization performance because the tasks are handled more microscopically and the solutions and strategies are more customized.
Strategic human resource development can help boost organization performance. Depending on the type of organization a different theory can help the organization achieve success. ‘Soft’ human resource management deals with developmental humanism whereas ‘Hard’ human resource management deals with utilitarian instrumentalism. Both of these offer solutions to improving organizational performance depending on the type of organization. The contingency report differs from a universal approach because it requires a leader to customize a solution or strategy according to the current situation. The approach helps with our complex environment today by offering different solutions to tackle different problems.
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