The relationship of the contingency approach to systems theory is parallel to the relationship of the neoclassical approach to the classical model of organisation theory. The neoclassical theorists ha accepted the basic concepts of classical theory by adding insights from the behavioural science in order to account for the realities of human behaviour in organisation. The contingency theorists take much the same view relative to systems approach. They accept systems approach premises about inter-dependency and the organic nature of orgnaisation. They accept the open adaptive character of organisation as well the need to preserve flexibility in the face of change. But they feel that systems approach is very abstract and difficult to apply in managerial situations. This can be overcome by modifying systems framework and translating it into operational framework. A comparison between systems and contingency approaches can be more understood by the following.

(i) Model of human Being. The systems approach usually employs a much richer model of human being than contingency approach. The former takes into account the full range of human needs and motivation, while contingency approach, by and large, is more interested in structural adaptation of Organizations to their task environment. Such a difference may be accounted by the fact that social psychologists have been the principal contributors to contingency approach.

(ii) Organizational Variables. Systems approach is all-encompassing and takes much broader view of organisational variables. It tries to cover personal, social, technical, structural and environmental variables. Contingency approach, on the other hand, concentrates on structural adaption of organisations. This approach tends to predict the ultimate outcome of a disturbance of the Organizational equilibrium by a change in the task environment.

(iii) Evolution. It is quite possible that two approaches-systems and contingency- may merge or profoundly influence each other. The systems approach may try to specify the situations under which a particular concept may be applied. It may predict the situations under which a particular type of organization can function well. This has been recognised by the equifinality characteristic of open system which suggests that different adaption strategies are available to an organisation facing a particular problem. Similarly, the contingency approach may provide the process by which the orgnaisation may adapt to task environment. Both these efforts are quit similar.