Which management theory suggests that the organizational structure should be tailored to specific circumstances?

Contingency theory posits that there is no one-size-fits-all approach to management and that organizational structure should be adapted based on specific situations and variables. This theory emphasizes the importance of considering the unique context of an organization, including factors such as the external environment, technology, size of the organization, and the nature of the tasks being performed. By tailoring the organizational structure to fit these specific circumstances, managers can more effectively address challenges and capitalize on opportunities.

In contrast, the other theories mentioned have different focal points. Classical theory emphasizes efficiency and the establishment of standardized procedures and roles within an organization, often leading to a more rigid structure. Human relations theory focuses on the importance of social factors and employee well-being rather than the situational aspects that contingency theory highlights. Lastly, systems theory examines the organization as a complex system of interrelated parts and emphasizes the flow of information and interactions, rather than stressing the need to customize the organizational structure to specific circumstances.