Association of Social Work Boards Masters (ASWB MSW) Practice Exam

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According to contingency theory, what determines the optimal course of action in organization management?

A fixed set of guidelines
The internal and external situation
The personal preference of the leader
The size of the organization only

The correct answer is: The internal and external situation

Contingency theory suggests that the optimal course of action in organization management is determined by the internal and external situation of the organization. This means that the specific circumstances and environment of the organization needs to be taken into account when making decisions and implementing strategies. Option A, a fixed set of guidelines, would not be effective as it does not consider the unique situation of the organization. Option C, the personal preference of the leader, also disregards the importance of considering external factors and relies solely on the individual leader's preference. Option D, the size of the organization, may play a role in decision making, but it should not be the sole determinant as other factors such as industry, culture, and market conditions also need to be considered for effective management.