The application of principles of management is dependent upon the prevailing situation and has to be changed as per requirements. This defines which nature of principle of management?

Option 1: Universal applicability -> This means principles can be applied uniformly across all organizations and situations, which contradicts the idea of changing based on requirements.

Option 2: Contingent -> This means principles are flexible and must be modified according to the prevailing situation and specific circumstances, which matches the description perfectly.

Option 3: Cause and effect relationship -> This refers to the principle that specific management actions lead to predictable outcomes, not about adapting to situations.

Option 4: Formed by practice and experimentation -> This describes how principles are developed over time through experience, not about their situational application.

Hence, Option 2: Contingent -> The contingent nature of management principles means they are not rigid but flexible and must be adapted based on the prevailing situation and requirements. This situational approach recognizes that different circumstances demand different applications of management principles -> correct