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CMA Foundation · Fundamentals of Business Economics and Management · Introduction to Management

A consulting firm in Bengaluru advises a client that there is no single best way to organise: the right structure depends on factors such as technology, size and environmental uncertainty. This advice is based on which approach?

The advice is based on the contingency approach. It holds that effective management depends on the situation, including technology, size and environmental uncertainty, so there is no one best way to organise. This contrasts with scientific management, which looks for one best method for each job.

  1. AContingency approachCorrect
  2. BHuman relations approach
  3. CQuantitative approach
  4. DScientific management approach

Explanation

The contingency (situational) approach holds that management practices must fit the situation, so no universal best method exists. The human relations approach emphasises social needs, the quantitative approach uses mathematical models, and scientific management seeks one best way for each task, which contradicts the advice given.

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