Limitations of the contingency approach
In spite of the various contributes contingency approach has not been acknowledged as a unified theory of the management because it suffers from some limitations. These limitations are of the following nature:
Inadequate literature: the contingency approach suffers from inadequacy of the literature. Therefore it, has no adequately spelled out various types of actions which can be taken under different situations. It is not sufficient to say that managerial action depends on the situation. The approach should provide if there is the situation this action can be taken.
Complex: the suggestion of the approach is very simple, that is managers should do according to the needs of the situation. However, when put into practice, this becomes very complex.
Difficult empirical testing: the contingency approach, being complex, presents problems in testing the prospects of the theory. For empirical testing of a theory, it is necessary that some methodology is available. No doubt that methodology is available but because of the involvement of too many factors, the testing becomes very difficult.
Reactive not practice: the contingency approach is basically reactive in the nature. It merely suggests what managers can do in the given situation.
No doubt that these limitations are valid, but the situation remains that at micro level, managers have to manage according to the contingency approach. They should not ignore the importance of taking actions according to the needs of the situations. For analyzing the situations, they will have to use their higher skills.