Question

Both Eden's company and SAS have cultures that reflect their environments. _______ theory explains this by saying that effective organizations have cultures that are correctly aligned with their external environments.

Answer 1

Answer: Contingent theory

Explanation:

The Contingent theory of management believes that management cannot possibly know the best way to manage the activities of a company because things could go wrong at any time.

The theory goes further to suggest that the best bet that a company has is to try to align its internet environment to its external environment. In other words, it should align its corporate culture with the culture of the environment that it is based in.