The contingency approach highlights the need to select appropriate management approaches and techniques based on the particular situation or context. This is important because what works in one situation may not be effective in another, so managers need to be flexible and adaptable in their approach to managing people and resources. By recognizing the importance of situational appropriateness, the contingency approach provides a useful framework for managers to make decisions based on specific circumstances rather than relying on preconceived notions or generic principles.