CIMA E2 Syllabus B. Managing people performance - Contingency Theory - Notes ^{10 / 21}

there is no one perfect leadership management style, the style should depend on the circumstances.

Mechanical organisations are stable organisations. Features of mechanical organisations are:

1. High degree of task specialisation

2. Clear responsibility and authority

3. Emphasis on loyalty and obedience

4. Coordination and communication

5. Selective release of top level information

6. Employees are locally recruited

Organic organisations need to respond to change. Features of organic organisations are:

1. Emphasis on task achievement, and this exceeds the need for obedience.

2. There are differences of status, determined by people’s greater expertise and experience

3. Management is based on consultation and involvement

4. Employees are recruited from a variety of sources

5. Efforts are integrated via communication channels