In contrast to many classical management theories, the contingency model of leadership, developed by Fred Fiedler, states that no single approach to management is effective for all organizations at all times and under all circumstances. Fiedler's management theory effectively did away with the \"One Best Way\" methods of management that preceded it. According to Fiedler, contingency theory is required for business success. This is because company size and structure, environmental change and uncertainty, type of technology in use by the business and leadership style of company management each play a significant role in determining the most effective management model for a given company at a given time. In addition, the management theory that proves effective today may not be effective tomorrow, when the above factors change.
Because of the continuously changing nature of the business organization and environment, Fiedler's management theory requires management to consider all aspects of the current situation before making managerial decisions. Some factors, or constraints, other than those mentioned above, which impact a company and its contingency strategy are these:
1. The company's ability to adapt to its environment;
2. The assumptions managers make about employees; and
3. The differences between available resources and operational activities.