This
paper explains that
contingency theory assumes that the successful management of an organization depends on, or is contingent to, the
environment in which it performs; every decision, which managers undertake in order to achieve the
organizational goals, is influenced by the specific environment. The author points out that differentiation and integration in the organizational
structure are contingent on contextual factors such as size and technology of the organization and external factors such as its market with its competitors, customers, suppliers, stakeholders and the environment. The paper relates that contingency thinking affects
leadership because leadership implies that managers need a certain degree of power and control in order to exert
influence on their followers. Table of Contents Introduction The Contribution of Contingency Thinking on the Knowledge of Management Contingency Thinking and Organizational Design Environment Technology Size Contingency Thinking and Leadership Conclusion