Final answer:
The contingency approach to management and structure is affected by technology, suppliers, government, and unions. This approach suggests there is no universal way to manage an organization; instead, it must adapt its management and organizational structure to fit these external factors.
Step-by-step explanation:
The key factors affecting the contingency approach to management and structure include technology, suppliers, government, and unions. Specifically, this approach acknowledges that there is no one-size-fits-all way to manage or organize a company and that organizational effectiveness results from fitting the characteristics of the organization to the demands of the situation. The contingency approach considers several elements such as:
- Technology: Referring to the tools, techniques, and actions applied to transform inputs into outputs. Different types of technologies may require different organizational structures and management styles.
- Suppliers: They have a significant impact on the organization's inputs, and their reliability and stability can affect the organization’s operations.
- Government: Government regulations can influence organizational practices and policies, necessitating changes in management or structure to comply with new laws.
- Unions: Labor unions may affect organizational policies regarding human resources and can negotiate terms that impact management decisions.
As these factors can significantly affect how a business operates, it is essential that the contingency approach to management remains flexible and adaptive.