This theory deals with the situation, which means that a leader acts according to the demand of a situation. It also means that leadership does not come with any particular methods to apply; rather leader reacts to certain given situations. So, it is up to their ability and skills that how they adapt to different situations and what necessary skills they show as per requirement of a situation. An organization may have to face different situations, and this theory asserts that a leader should have skills to act according to each situation to achieve success (Ahmed, et al., 2016)

Applying Contingency Management Theory

            This theory can work very well in the above given context, because this management theory believes that there are no set rules for managing organizations, rather every organization is different and it can face different situations. So, organizations should look at the situation at hand as per contingency theory, and then derive a viable strategy to move forward. The managers can adopt this strategy, when they have come up with such situation, and want to improve every aspect of business. They can analyze the situation that where things are going in wrong direction, then after taking valuable feedback from subordinates, he/she can work out a best strategy to get out of this difficult situation. This theory can be applied in the situation where workers are not performing well and their productivity and quality is very low. Moreover, the bank is not able to live up to the expectation of customers in all aspects.

References of Contingency Theory of Leadership of Compare and contrast paper for Universalist approach for SHRM

Ahmed, Z., Nawaz, A. & Khan, I. U., 2016. Leadership Theories and Styles: A Literature Review. Journal of Resources Development and Management, Volume 16, pp. 1-7.

Catherine Bailey, D. M. C. K. T. G., 2018. Strategic Human Resource Management. s.l.:Oxford University Press.

John Purcell, P. B., 2015. Strategy and Human Resource Management. s.l.:Macmillan Education UK, .

Kramar, R., 2014. Beyond strategic human resource management: is sustainable human resource management the next approach?.. The International Journal of Human Resource Management, 25(8), pp. 1069-1089..

Tzafrir, S. S., 2006. A universalistic perspective for explaining the relationship between HRM practices and firm performance at different points in time.. Journal of Managerial Psychology,, 21(2), p. 109–130..