Which of the following situations shows that the application of principles of management is contingent?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → A firm fixes fair pay for a job by the worker’s contribution, its own paying capacity and the going wage rate.
Option (1) A firm fixes fair pay for a job by the worker’s contribution, its own paying capacity and the going wage rate. — Correct. Contingent means dependent on the situation. Every employee deserves fair and just pay, but what is fair is decided by several factors: the worker’s contribution, the employer’s paying capacity and the going wage rate. So the firm applies the principle of fair pay according to its own situation at that time.
Option (2) A hospital and a car maker both divide work into small tasks, though the extent of division differs between them. — Incorrect. This shows universal applicability. Division of work is used in all types of organisations, such as a hospital and a car maker. Only the extent of division differs from case to case.
Option (3) A manager finds no readymade answer to a dispute between two departments, so she stresses the overall goals of the firm. — Incorrect. This shows that principles are general guidelines. They give no readymade, straitjacket solution; in a dispute between departments, a manager may stress the overall goals of the organisation.
Option (4) A factory owner improves the lighting in one shed to test whether it reduces the stress of workers who feel tired. — Incorrect. This shows that principles are formed by practice and experimentation. Here an experiment checks whether better physical conditions reduce the stress of tired workers.
NCERT (2026-27 Edition): “(ii) General guidelines: The principles are guidelines to action but do not provide readymade, straitjacket solutions to all managerial problems. This is so because real business situations are very complex and dynamic and are a result of many factors. However, the importance of principles cannot be underestimated because even a small guideline helps to solve a given problem. For example, in dealing with a situation of conflict between two departments, a manager may emphasise the primacy of the overall goals of the organisation.” “(iii) Formed by practice and experimentation: The principles of management are formed by experience and collective wisdom of managers as well as experimentation. For example, it is a matter of common experience that discipline is indispensable for accomplishing any purpose. This principle finds mention in management theory. On the other hand, in order to remedy the problem of fatigue of workers in the factory, an experiment may be conducted to see the effect of improvement of physical conditions to reduce stress.” “(vii) Contingent: The application of principles of management is contingent or dependent upon the prevailing situation at a particular point of time. The application of principles has to be changed as per requirements. For example, employees deserve fair and just remuneration. But what is just and fair is determined by multiple factors. They include contribution of the employee, paying capacity of the employer and also prevailing wage rate for the occupation under consideration. …” |