Contingency Approach
Another approach of modern organization theory is contingency approach. As contingency approach is an extension of systems approach. Contingency approach of organizational designs suggests that structure of an organization should be tailor made search for a typical structure applicable to all organization is futile. Thus the basic implication of this approach is that there cannot be a particular model or organization structure which can be applied in all situations. Rather an appropriate organization structure is one with appropriate internal states and processes of organization contingent upon external environment and internal needs. Therefore while designing the structure various factors affecting it should be taken into consideration.