Explanation: The contingency approach is the idea that organizations tend to be more effective when they are structured to fit the demands of the situation. By fitting to the demands of the situation, it means that they are better equipped with alternatives to be put into operation if needed, especially in the case of emergencies, or in situations where earlier arrangements failed. The approach claims that there is no best way to organize a corporation, to lead a company, or to make decisions and therefore posits that the optimal course of action is contingent (dependent) upon the demands of the situation.
