THIS EPISODE EXPLAINS THE BASIC PRINCIPLES OF CONTINGENCY APPROACH WHICH IS AN OFF SHOOT OF THE SYSTEMS APPROACH. IT STATES THAT CONTINGENCY IS OTHERWISE KNOWN AS SITUATIONAL APPROACH WHICH BASICALLY MEANS THERE IS NO BEST FIT FOR ANY SITUATION. THE PROPONENTS OF CONTINGENCY THEORY PROPOSED THAT BOTH THE CLASSICAL THE NEO CLASSICAL THEORIES WOULD BE HANDY GIVEN ANY SITUATION IN MANAGEMENT. THE MOST POPULAR PROPONENT OF THIS APPROACH WAS WOODWARD WHO CARRIED OUT A STUDY OF A 100 COMPANIES DRAWING FROM DIFFERENT CATEGORIES OF INDUSTRIES. SHE CAME OUT WITH THE RESULTS THAT THE MIX UNIT BATCH AND MASS PRODUCTION WOULD GIVE DIFFERENT RESULTS AS TO ITS MANAGERIAL EFFECTIVES WHEN COMBINED WITH AGE, SIZE. AND THE TECHNOLOGY OF THE FIRM.