Contingency theory is a class of behavioral theory that claims that there is no best way to organize a corporation, to lead a company, or to make decisions. Instead, the optimal course of action is contingent (dependent) upon the internal and external situation. Several contingency approaches were developed concurrently in the late 1960s, however; the most widely recognized is Fiedler’s (1964, 1967; Fiedler & Garcia, 1987). Contingency theory is a leader–match theory which tries to match leaders to appropriate situations. It is called contingency because it suggests that a leader’s effectiveness depends on how well the leader’s style fits the context or the situation. - Learn more at www.technofunc.com. Your online source for free professional tutorials.