Q.'M/s J.K. Computers' is a small organisation engaged in assembling of computers. In this organisation, decision making rests with top management while the middle level is involved in only the implementation of plans. On the other hand, 'Progressive Computers Ltd.' is a large company where a number of people from each level are involved in the decision-making process. The application of the principle of 'Centralisation and Decentralisaton' is different in the two organisations as the situation in each enterprise is not same. From the following identify the nature of principles of management : (A) Mainly Behavioural (B) Contingent (C) Flexible (D) Universal
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Start your 14-day free trial to unlock the full solution →The application of the principle of centralisation and decentralisation differs in the two firms because 'the situation in each enterprise is not same' — this dependence of application on the prevailing situation is the contingent nature of the principles of management (Option B).
The question describes two computer firms applying the SAME principle — Centralisation and Decentralisation — in completely different ways. M/s J.K. Computers, a small assembler, concentrates decision-making at the top. Progressive Computers Ltd., a large firm, involves people from every level in decisions. The case then gives the crucial reason: the application differs 'as the situation in each enterprise is not same.'
Why the answer is 'Contingent'
Among the features that describe the nature of the principles of management, two sound similar and must be told apart carefully:
- Contingent: The application of a principle of management is contingent upon (dependent on) the prevailing situation at a particular point of time. The principle itself holds, but how it is applied has to be decided according to the circumstances of each situation. NCERT's own illustration of this is exactly the centralisation–decentralisation decision: how much authority a manager should retain or pass down depends on the situation of the enterprise.
- Flexible: Principles are not rigid; a manager can modify or bend them when required. Flexibility stresses that the principles are adaptable rather than absolute.
The decisive clue in this case is the sentence 'the situation in each enterprise is not same.' The application changes because the situations are different — that is the textbook description of the contingent nature, not merely of flexibility. Flexibility tells us a principle can be changed; the contingent nature tells us the change is driven by the situation, which is precisely what the case highlights. …
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