Contingency views are ultimately directed towards suggesting organisational designs and managerial actions most appropriate for specific situations.' The real implications of contingency approach can be analysed in the following manner.

1. Managerial action in the organisation is situational and various actions must be taken depending upon the situations. Thus and action may be suitable for one organisation at a particular time out but may not be suitable for other organizations at the same time or for the same Organizations at different times. The basic reason behind this is that situational variables on which action is dependent may not be similar in various organisation over the period of time. The contingency approach, thus, emphasises the analytical and diagnostic ability of managers.

2. Contingency approach provides significant contribution in Organizational design. It suggests that no Organizational design can be suitable for all situations, rather, the suitable design is one determined keeping in view the requirements of environment, technology, size, and people. However, it is not enough to suggest the need for integrating or anisation with environment, the approach must also suggest and explicitly define certain pattern of organisational variables. This approach attempts to develop concepts relating patterns of interactive relationships between various Organizational subsystems.

3. This approach suggests that since organisation interacts with the environment, neither the organisation nor any of its subsystems is free to take absolute actions. Rather, it has to exercise the action subject various social, regal, political, technical, and economic factors. Thus the contingency approach is applicable to a number of managerial tasks, particularly those with heavy behavioural components. Kast and Rosenzweig feel that this approach can be useful in strategy formulation, organisational design, information decision systems, influence systems and leadership and organisational improvement.

Contingency approach, however, suffers from inadequacy of literature. This fact has been accepted also buy those who are real contributors of this approach. For example, Kast and Rosenzweig suggest that once we have more complete understanding of what is and what is and what happens, we can begin to consider normative propositions of what managers oughts to do seek'. Thus this can be fully operational only when more contributions come prescribing 'If this is the situations, this action can be taken'.