Contingency Theory is a management concept that suggests there is no one-size-fits-all approach to leadership or organizational structure. Instead, the best way to manage a situation depends on various factors, such as the environment, the task at hand, and the people involved. This means that effective leaders must adapt their style and strategies based on the specific circumstances they face. For example, a leader might use a more directive approach in a crisis, while adopting a collaborative style during routine operations. By recognizing that different situations require different responses, Contingency Theory helps organizations become more flexible and responsive to change.