Contingency Theory and Its Implications to Corporate Financial Planning and Organization Structure

Abstract:  The  development  of  the  organization  theory  has  existed  for  such  long  periods especially in terms of management theory. The driving force behind the evolution of management theory is that its efforts to look for better ways in managing organizational resources. Contingency theory which is a part of the organizational environment theories has brought many  implications  in  management’s  decision  at  any  organization.  Especially  in  finance, contingency theory has been employed in some financial decisions including the decision of corporate  financial  planning  as  a  part  of  the  most  important  considerations,  and  those actions  would certainly  have  implications to  the  corporate  organizational structure.  The contingency theory has been implemented by financial managers in decision making especially in strategic long-term and short-term financial planning regarding many assumptions that underlying the  decision.    In practice,  financial managers  can implement  the contingency theory by using Scenario Planning. The advantages of the contingency theory are that the theory has enriched the management theories by addressing the environment as one of the keys for managerial decision making. The theory has also helped management of organi-zations in improving the quality of decision making by addressing the contingent variables. The limitation of the contingency theory is that the contingent factors are still in debates until nowadays so that we cannot determine the precise numbers of contingent factors.

Keywords: contingency theory, corporate financial planning

Author: Mokhamad Anwar

Journal Code: jpmanajemengg150028

Artikel Terkait :

Jp Manajemen gg 2015

• THE INFLUENCES OF CUSTOMER RELATIONSHIP MANAGEMENT TO CUSTOMER SATISFACTION IN GAUDI CLOTHING STORE MANADO
• THE EFFECT OF TRAINING AND DEVELOPMENT PROGRAM AND WORK CHARACTERISTICS ON EMPLOYEES PERFORMANCE IN MINISTRY OF RELIGION OFFICE IN SOUTH MINAHASA DISTRICT
• THE INFLUENCE OF ROA, ROE, ROS, AND EPS ON STOCK PRICE
• THE INFLUENCES OF SERVICESCAPE, SERVICE QUALITY AND PRICE TOWARD CUSTOMER SATISFACTION AT SILOAM HOSPITALS MANADO
• THE INFLUENCE OF BRAND IMAGE, AND SERVICE QUALITY TOWARD CONSUMER PURCHASE INTENTION OF BLUE BIRD TAXI MANADO
• THE INFLUENCES OF JOB SATISFACTION AND JOB PERFORMANCE TO EMPLOYEE TURNOVER INTENTION AT HOTEL YUTA MANADO
• THE INFLUENCE OF FUNDAMENTAL FACTORS ON STOCK RETURN (CASE STUDY: COMPANY LISTED IN LQ45 2011-2014)
• THE COMPARATIVE ANALYSIS OF FINANCIAL PERFORMANCE BEFORE (2008-2010) AND AFTER (2012-2014) IPO (CASE STUDY: FIVE LISTED COMPANIES IN IDX)
• THE INFLUENCE OF LEADERSHIP STYLE, MOTIVATION, AND WORK DISCIPLINE ON EMPLOYEE PERFORMANCE AT BANK SULUT KCP LIKUPANG
• ANALYSIS THE PERFORMANCE APPRAISAL EFFECTIVENESS ON EMPLOYEE PERFORMANCE AT PT. PELINDO IV (PERSERO) BITUNG
• THE INFLUENCE OF BRAND IMAGE, ADVERTISING, PERCEIVED PRICE TOWARD CONSUMER PURCHASE INTENTION AT SAMSUNG SMARTPHONE
• ANALYSIS EMPLOYEE JOB SATISFACTION TOWARD EMPLOYEE WORK MOTIVATION AT PELAKSANA HARIAN BADAN NARKOTIKA NASIONAL NORTH MINAHASA REGENCY
• THE EFFECT OF ORGANIZATIONAL CULTURE TOWARDS ORGANIZATIONAL PERFORMANCE (CASE STUDY: DINAS PERINDUSTRIAN DAN PERDAGANGAN PROVINSI SULAWESI UTARA)
• THE ANALYSIS OF CUSTOMER PURCHASE INTENTION OF HOUSES USING REAL ESTATE AGENT IN MANADO BASED ON PSYCHOLOGICAL FACTORS
• THE COMPERATIVE ANALYSIS OF CONSUMER BUYING DECISION OF ALL NEW JAZZ AND ALL NEW YARIS CARS (Case Study: Manado)
• TRANSJAKARTA COMPANY’S STRATEGY AND MINIMUM SERVICE STANDARD TO RAISE PASSENGERS’ SATISFACTION
• INFLUENTIAL FACTORS IN CHOOSING HIGHER EDUCATION INSTITUTION: A CASE STUDY OF A PRIVATE UNIVERSITY IN SURABAYA
• THE INFLUENCE OF PERCEIVED EASE OF USE, PERCEIVED USEFULNESS AND TRUST ON REPURCHASE INTENTION OF LION AIR E-TICKET
• THE EFFECT OF PERCEIVED ORGANIZATIONAL SUPPORT AND JOB SATISFACTION TOWARD INTENTION TO LEAVE OF PLAZA BANGUNAN & ELECTRONIC CALACA, MANADO
• THE EFFECT OF UTILITARIAN VALUE AND HEDONIC VALUE ON TEENAGERS CUSTOMER LOYALTY AT MANADO TOWN SQUARE
• THE EFFECT OF WORK ENVIRONMENT AND COMPENSATION TOWARD EMPLOYEE PERFORMANCE AT THE OFFICE OF STATE ASSETS AND AUCTION SERVICE MANADO
• THE EFFECT OF JOB DESIGN AND COMPENSATION TOWARD EMPLOYEE SATISFACTION AT PT BNI TBK MANADO
• THE INFLUENCE OF TRANSAKSIONAL AND TRANSFORMATIONAL LEADERSHIP STYLE ON EMPLOYEE PERFORMANCE AT PT DUTA MULIA CAKRAWALA MANADO
• COMPARATIVE OF STOCK PRICE BEFORE AND AFTER INDONESIAN PRESIDENTIAL ELECTION IN 2014 OF LQ-45 STOCK LISTED ON IDX
• THE EFFECT OF COMPENSATION, LEADERSHIP, WORK ENVIRONMENT, AND TRAINING ON EMPLOYEE PERFORMANCE OF BANK SYARIAH MANDIRI MANADO