Since the organizational structure is getting complex day by day, the management of employees is also getting complicated. The need for proper managerial skills and rules arises with the increased number of employees in any company and the management constantly faces this issue. Thus, Organizational Theories of management help the organizations to ease out the process of handling by providing a blueprint of steps according to the characteristics of the organization (Jones, 2004). It has been accepted that the use of organizational theories has become a prerequisite in running big organizations today.
Contingency theory is based on an opinion or perception that every situation or problem can be managed in a better way that it usually is. It certainly opens the organization in using different policies and theories for managing and thus is not a stringent theory. Since an organization is a complex entity, different aspects and styles of management are required to run it and thus those management styles must find a way into the core values of the company. Technology is a very important part of this stint and provides ample support in enhancing the performance (Clegg, Kornberger and Pitsis, 2005). There are certain factors such as size of the organization which can be understood by the number of employees, production capacity of the company, its revenue and accumulated wealth; its technological requirements et cetera that affect the management strategy and theory adoption.