24-03, 9:35 PM

REVIEWER SW ADMIN

THEORY OF X AND Y : DOUGLAS MCGREGOR

· Theory X and Theory Y are theories of human motivation created and developed by Douglas McGregor at MIT
Sloan School of Management in 1960.
· They describe two contrasting of workforce motivation
· Theory X and Theory Y have to do with the perception managers hold on their employees, not the way they
generally behave, it is attitude not attributes.
· His work is based upon Maslow’s Hierarchy of needs, where he grouped the hierarchy into lower-order needs
(theory x) and higher-order needs (theory y).
· He suggested that management could use either set of needs to motivate employees, but better results would
be gained by use of theory Y, rather than theory x.
· These two views theorized how people view human behavior at work and organization life.
· Our management style is strongly influenced by our beliefs and assumptions about what motivates members of
your team: If you believe that team members dislike work, you will have an authoritarian style of management; On the
other hand, if you assume that employees take pride in doing a good job, you will tend to adopt a more participation
style.

THEORY X: authoritarian management style

Theory X assumes that employees are naturally unmotivated and dislike working, and this encourages an
authoritarian style of management. According to this view management must be actively intervene to get things done.
This style of management assumes that workers:
· Dislike working.
· Avoid responsibility and need to be directed.
· Have to be controlled, forced, and threatened to deliver what’s needed.
· Need to be supervised at every step, with controls put in place.
· Need to be enticed to produced results; otherwise they have no ambition or motivation to work.

X-type organizations tend to be top heavy, with managers and supervisors required at every step to control
workers. There is little delegation of authority and control remains centralized.
McGregor recognized that X-type workers are in fact usually the minority, and yet i large scale production
environment, X theory management may be required and can be unavoidable.

CHARACTERISTICS:
· Intolerant
· Distant and detached Aloof and arrogant Short temper
· Issues instructions, directions, edicts Issues threats to make people follow instruction
· Demands, never asks Does not participate Does not team-build
· Unconcerned about staff welfare, or morale
· Proud, sometimes to to the point of self-destruction One-way communicator Poor Listener

THEORY Y: Participative management style.:

· Theory Y shows a participation style of management that is decentralized.
· It assumes that employees are happy to work, are self- motivated and creative, and enjoy working with greater
responsibility.
· Take responsibility and are motivated to fulfill the goals they are given.
· Seek and accept responsibility and do not need much direction. Consider work as a natural part of life and
solve work problems imaginatively.
· This management style tends to be more widely appropriate. In Y-type organizations, people at lower levels of
the organization are involved in decision and have more responsibility.
· Theory X and Y relate to Maslow’s hierarchy of needs in how human behavior and motivation are main priorities
in the workplace in order to maximize output. In relation to theory Y, the organization is trying to create the
most symbiotic relationship between managers and workers, which relates to Maslow’s needs of self-actualizations
and esteem.
· For self-actualization issues relate to esteem when the manager is trying to promote each team member’s
self-esteem, confidence, achievement, happiness, respect of others, and respect by others.
CHARACTERISTICS:
· Self motivated Responsible Always participate
· Gives rewards and feedback promotion
· Power to implement decisions Active
· Good listener Happy
· Concerned about staff welfare
Comparing Theory X and Y:

· Motivations:
Theory x assumes that people dislike work, they want to avoid it and do not want to take responsibility.
Theory y assumes that people are self motivated , and thrive on responsibility

· Management Style and Control:

In theory x organization, management is authoritarian, and centralized control is retained, while in theory y, the
management style involves employees in decision making, but retains power to implement implementation.

· Work organization:
Theory x employees tend to have specialized and often repetitive work. In theory y, the work tends to be organized
around wider areas of skill or knowledge; employees are also encourage to develop expertise and make suggestion
and improvement.
REWARDS
Theory x organizations work on a “carrot and stick” basis, and and performance is part of the overall mechanism of
control. In theory y organizations, appreciation, is also a regular and important, but is usually a separate mechanism
from organizational controls. Theory y organization also give employees frequent opportunities for promotion.
Accepting creative and innovative ideas provided employees
APPLICATION
Although Theory x management style is widely accepted as poor to others, but somehow, it has its place of beneficial
in large scale production operation and unskilled production-line work.
Theory y-style management is suited to knowledge work and professional services. Professional service
organizations naturally evolve. Theory y-type practices by nature of their work, such as call center operations, can
benefit from theory y principles to encourage the knowledge sharing and continuos improvement

HUMAN RELATIONS THEORY: ELTON MAYO

Definition of Terms
• Human relations – are the interactions that take place within a business setting. These human relationships
encompass any form of interactions between the clients, suppliers, workers, and management, all of which are geared
toward achieving the organization's goals, and objectives.
• The human relations theory – is the ideology that emphasizes the need to prioritize satisfaction among workers.
It posits that the informal organization of the workplace structures and boosting employee morale may increase
employees' overall productivity.
• The Hawthorne effect – is a phenomenon observed as a result of an experiment conducted by Elton Mayo. In an
experiment intended to measure how a work environment impacts worker productivity, Mayo’s researchers noted
that workers productivity increased not from changes in environment, but when being watched.
• 4 Phases of Hawthorne Experiment :

1. Illumination experiment were undertaken to find out how varying levels of illumination (amount of light at the
workplace, a physical factor) affected the productivity. The hypothesis was that with higher illumination, productivity
will increase.
2. Relay Assembly Test Room Experiment – it was conducted to determine the effect of changes in hours and
other working conditions on productivity
3. Mass Interviewing Program – The focus of this experiment was on knowing employees’ human relations in the
organization rather than their physical.
4. Bank wiring observations – Its purpose was to find out the effect of payment incentives on employee productivity.

Human Relations Theory:

• Is the humanistic way of managing people in an organization. It holds the belief that valuing employees’ feelings,
emotions, needs, and attitudes, prompting teamwork, employee participation, non-directive supervision, good
relationships between managers and workers, etc. are the key ways to employee motivation and productivity, of the
whole organization.
• This theory emphasizes that managers should be more sensitive to employees’ needs and attitudes.

Elements:
1. The individual – Each person contributes a unique set of attitudes and skills to their job.
2. Informal organization – a network of work relationships evolving from prolonged mutual interaction among
individuals working together.
3. Participative management – encouraging worker involvement in decision-making processes regarding their work
conditions.

Principles:
1. Treat employees well as individuals
2. Promote positive group values and relationships
3. Ensure effective management and supervision
4. Establish effective organizational conditions
Advantages:
5. It improves productivity of employees
6. It removes grievance among the employees
7. It improves Employee Retention
8. It creates good human relationships.
9. It improves goodwill of company.
Disadvantages:
• It only focuses on interpersonal and employee relations at the workplace and gives less focus on work.
• The overemphasis on employees’ welfare may make them get more involved in outside activities instead of
organizational duties
• Human social relationships cannot be the only factor for workers to work rather many factors are vital for
workers’ motivation for work.
• It gives much attention to informal relations among workers and between workers and supervisors, but little to
the formal relationships with informal ones.

GANTT'S TASK AND BONUS WAGE SYSTEM: HENRY GANTT

Introduced in 1901 as a differential of Piece Wage System Employee received a bonus in addition to his regular day
rate. Enables workers to earn a living while learning to increase their efficiency.

THE PERSPECTIVE OF THE WORKER AND SUPERVISOR

Gantt was interested in an aspect of industrial education which he called the “habits of industry” Gantt brought an
innovation, by paying the foreman a bonus if all workers met the required standard performance
GANTT CHART
Daily record was kept for each worker - in black if he met the standard, in red if he didn’t. This expanded into
further charts on quantity of work per machines, quantity of work per worker, cost control and other subjects.
The Gantt chart provided a graphic means of planning and controlling work and led to its modern variation. Program
Evaluation and Review Technique (PERT
• APPLICATION OF GANTT'S PRINCIPLE IN MODERN BUSINESS
It is translated in 8 languages and used throughout the world.
Formed basis for two charting devices used for planning, organizing and controlling complex organization’s processes:
Critical path method (CPM) originated by DU point —Performance Evaluation and Review Technique (PERT)
developed by navy -Lotus 123
• A Gantt chart is a visualization that helps in scheduling, managing, and monitoring specific tasks and resources in a
project. It consists of a list of tasks and bars depicting each task's progress.
The Gantt chart enabled management to see, in graphic form, how well work was progressing, and indicated when
and where action would be necessary to keep on time.
PROS
✓ Provides a High-Level Overview
✓ Improves Efficiency and Helps Manage Resources
✓ Allows for Better Tracking
✓ Illustrates Overlaps and Dependencies
CONS
× Setup Can Be Time Consuming
× They Can Become Complex and Confusing
× They Don’t Designate Priorities

TWO FACTOR THEORY: FREDERICK IRVING HERZBERG

Herzberg proposed the Motivation-Hygiene Theory, also known as the Two factor theory (1959) of job satisfaction
According to his theory, people are influenced by two set of factors:
- Motivation Factors
- Hygiene Factors

Hygiene factors
This factors has the affect to reduce motivate workers. The hygiene factors affect the conditions of the workplace.
Motivational Factor
A sense of achievement meaning employees will know that because of their hardwork the business is going Forward.
Recognition of workers Contributions meaning the owner will give credit to the workers.

Hygiene (External) Factors:

• Salary and Compensation
• Working Conditions
• Company Policies
• Supervision
• Job Security
• Interpersonal Relationship
• Status

Motivational (Internal) Factors:

• Recognition and Achievement
• Responsibility
• Advancement and Career growth
• Work itself
• Recognition and Appreciation
• Meaningful Work
• Challenging Work

SCIENTIFIC MANAGEMENT: FREDERICK TAYLOR

Scientific Management: Is the art of knowing what you want to do and then seeing that they do it in the best and the
cheapest way

Efficiency: The ability to achieve an end goal with little to no waste, effort, or energy
Ineffective : Not producing the effects or result that are wanted
Foremanship: A person in charge of a group workers
Professional Hierarchy: a term used to describe the organizational structure of a company
Rule of Thumb: Refers to an approximate method for doing something, based on practical experience rather than
theory.

What is Scientific Management?

Using scientific methods to determine and standardized the one best way of doing a job
- A clear division of task and responsibilities
- High pay for high performing employees
- A hierarchy of authority and strict surveillance of employee.
Elements and Tools of Scientific Management
1. Separation of Planning and Doing
• Taylor emphasized the separation of planning aspect from actual doing of the work. Before Taylor’s a scientific
management, a worker used to plan about how he had to work and what instruments were necessary for that.
2. Functional Foremanship
• In order to improve the quality of the supervision of workers at the supervisor level, Taylor developed the
concept of functional Foremanship. In the system, eight person are involved to direct the activities of workers.
3. Job Analysis
• Job Analysis, as given by Taylor suggest the fair amount of day’s work requires certain movements and rest
periods to complete it.
4. Standardization
• Standardization should be maintained in respect of instruments and tools, period of work, amount of work,
working conditions, cost of production etc.
5. Scientific Selection and Training of Workers
• Taylor have importance to the scientific selection and development of the worker.
6. Financial Incentives
• Financial incentives can motivate workers to put in their maximum efforts.
7. Economy
• Taylor not only considered scientific and technical aspects, but he also gave importance to economy and profit.

8. Mental Revolution
• Scientific management depends on the cooperation between management and workers.

Principles of Scientific Management

1. Replacing rule of thumb with Science
This decision should be based on scientific analysis and cause and effect relationships rather than ‘Rule of Thumb’
where the decision is taken according to the manager’s personal judgement.
2. Harmony in group Action/Cooperation
Taylor indicated and believed that the relationship between the workers and management should be cordial and
completely harmonious.
3. Division of Work and Responsibility
Work and responsibility should be divided between management and workers properly. Managers should apply
scientific management principles in planning the work. Workers should perform the tasks.
4. Maximum Output
Scientific management involves continuous increase in production rather than restricted production either by
management or by workers.
5. Development of Every Person to his Greatest Efficiency
The effectiveness of a company also relies on the abilities and skills of its employees. Thus, implementing training,
learning best practices and technology, is the scientific approach to brush up the employee skill.

Application of Scientific Management in the Workplace

1. Analyze work processes
• Scientific management takes these findings and standardizes the most efficient way of doing the task, retraining
employees as needed.
2. Define and delegate tasks
• Instead of assigning one employee to do a variety of tasks or complete a project from start to finish, managers
can break up complicated projects by assigning employees to one specific task.
3. Use employees’ skills and offer incentives
• Company managers should strive to recognize employees’ skills and assign employees to tasks best suited to
their talents so they can be as productive as possible. Managers can establish goals for productivity and provide
bonuses or raises to high-performing employees

4. Establish a professional hierarchy

• Ensuring that each employee understands what is expected of them and who to report to can help define a
workplace’s hierarchy. Employees without supervisory roles should answer to their supervisors.

Advantages
Increased Productivity
Don’t need to pay a premium for skilled workers
Most productive workers receives higher wages
Disadvantages
Unfulfilled Employees
Dehumanizing following basic instructions
Survival of the fittest environment

SYSTEMS THEORY OF ORGANIZATION: KARL LUDWIG VON BERTALANFFY

• He proposed the systems theory of organizations as a response to the traditional reductionist approach to
organizational theory. He believed that organizations are not just a sum of their parts but instead, they are dynamic
systems that interact with their environment.
• One of the main factors was his dissatisfaction with the traditional reductionist approach to science and the belief
that complex systems could not be understood by breaking them down into smaller parts.
• System - is an interrelated set of elements functioning as a whole.
• Closed System - systems that take environment for granted.
• Open System - systems that interact with their environment.
• Synergy - units that are more successful working together than working alone.
• Entropy - the process that leads to decline.
• Subsystems- are smaller parts or components within a larger system, each with its own specific function or
purpose.
• Organization - An organization is a group of people working together towards a common goal or purpose.
• Inputs - are the resources, materials, or information that are put into a system or process to produce a desired
output.
• Transformation process- refers to the series of actions or operations that change inputs into desired outputs.
• Outputs- are the results or outcomes produced by a system or process after inputs have been transformed.
• Feedback - is information about the results of a process or action that is used to make adjustments or
improvements.

WHAT IS SYSTEMS THEORY?

• The systems theory of organizations is a way of thinking about organizations as complex systems that interact
with their environment. It suggests that an organization is more than just the sum of its parts, and that changes in one
part of the organization can affect the entire system.
• It is also a management methodology as it is a way of analyzing and thinking about organizations and also an
alternative approach.
• The system theory focuses on understanding the organization as an open system that transforms inputs into
outputs.
• The system theory began to have a strong impact on management thought in the 1960s as a way of thinking about
managing techniques that would allow managers to relate different specialties and parts of company to one another,
as well as to external factors.
• The systems theory focuses on the organization as a whole, its interaction with the environment, and its need to
achieve equilibrium.
• A system is an interrelated set of elements functioning as a whole.

*Important viewpoints on organization:

• Closed systems are systems that take environment for granted; environments are assumed to be predictable &
stable; efficiency is the function of internal design & operation
• Open systems are systems that interact with their environment. Assumes environment is unpredictable & affects
other systems.
• Subsystems are systems within a broader system.
• Synergy are units that are more successful working together than working alone.
• Entropy is the process that leads to decline.
Systems Approach (Johnson, Kast & Rosenzweig; 1967)
• An organization as a system is composed of four elements:
• inputs (material, human, time resources),
• transformation processes (technological and managerial processes),
• outputs (products or services), and
• feedback (reactions from the internal & external environment).
Importance Of Systems Theory
1.) Strategic Planning
understanding how an organization functions is important for managers who are involved in strategic planning. they
need to know how various departments work together and affect each other.
2.) Managing Change
a valuable tool for those who need to make changes in an organization or who want to implement new initiatives within
their businesses.
3.) Project Management
with large, multi-stakeholder projects, a systems approach allows for clear planning and delegation from the outset.

Features Of Systems Theory

1.) Holistic
the systems approach to management focuses on a collective view of an organization.
2.) Offers Perspective
the systems approach allows you to look at an organization from the different perspectives of its subsystems, which
gives you more insight and control.
3.) Change-Friendly
systems theory is one approach that may be useful for those who are interested in changing their organizations, or
those who are interested in implementing new programs or initiatives within businesses.

Advantages of Systems Theory of Org.

Holistic approach: By viewing the organization as a whole system, rather than as a collection of separate parts, the
systems theory can provide a more comprehensive and holistic understanding of how the organization works and how
it interacts with its environment.
Interdisciplinary: The systems theory draws on ideas from multiple disciplines, such as biology, engineering, and
cybernetics, which can provide a more diverse and nuanced perspective on organizational dynamics.
Flexibility: The systems theory can be applied to a wide range of organizations, from small businesses to large
multinational corporations, and can be adapted to different contexts and situations.
Disadvantages of Systems Theory of Org.
Complexity: Because the systems theory involves analyzing complex systems, it can be difficult to fully understand
and apply in practice. It requires a high level of expertise and may be challenging for non-experts to grasp.
Lack of specificity: The systems theory is a broad framework and does not provide specific guidance on how to
address particular organizational problems. This means that additional theories or approaches may be needed to
supplement the systems theory.
Overemphasis on interdependence: While the systems theory emphasizes the interdependence and
interconnectedness of different parts of an organization, it may overlook the importance of individual factors, such as
individual motivation and decision-making, that can also affect organizational outcomes.

WILLIAM OUCHI'S THEORY Z : Dr. William Ouchi, introduced in the 1980s during the Asian economic boom.

Assumptions of Theory Z
1. Partnerships: Employees value collaboration with employers and colleagues.
2. Support and Safety: Organizations must offer a safe environment and resources for growth, training, and
work-life balance.
3. Reciprocity and Trust: Mutual support between management and employees fosters trust and confidence.
4. Work-Life Balance: Family, culture, and traditions are just as important as working conditions.

Comparison with Other Theories

- Douglas McGregor's X and Y Theories : Adds a participative component to McGregor's "Theory Y," promoting
employee involvement and trust.
- Abraham Maslow's Hierarchy of Needs: Aligns with the pyramid's concepts, emphasizing safety, social connections,
esteem, and self-development.

Characteristics of Theory Z Management

1. Collective Decision-Making: Engages employees in organizational decisions to foster loyalty and alignment.
2. Long-Term Employment: Offers job security to enhance stability and satisfaction.
3. Job Rotation: Encourages well-rounded development and skill enhancement.
4. Slow Promotion: Ensures thorough development and lasting contributions.
5. Training Focus: Facilitates continuous improvement of employees.
6. Care for Personal Circumstances: Supports employees beyond the workplace.
7. Formalized Measures: Establishes clear rules and expectations for efficiency.
8. Individual Responsibility: Empowers employees with roles that motivate.

These principles and practices aim to create a workplace where employees feel valued and develop a lasting
connection with their organization.

HIERARCHY OF NEEDS: ABRAHAM MASLOW

Maslow's Hierarchy of Needs, a motivational theory, suggests that humans are motivated by a hierarchy of needs,
starting with basic physiological needs and progressing to higher-level needs like safety, social, esteem, and
self-actualization, which managers can use to understand and address employee needs.

Maslow's Hierarchy of Needs:

Physiological Needs:These are the most basic needs for survival, such as food, water, shelter, and sleep.
Safety Needs: Once physiological needs are met, individuals seek security and stability, including job security, financial
stability, and protection from harm.
Social Needs (Love and Belonging): People then seek to connect with others, form relationships, and feel a sense of
belonging.
Esteem Needs: Individuals desire recognition, respect, and a sense of accomplishment.
Self-Actualization Needs: At the top of the hierarchy are needs related to personal growth, creativity, and realizing
one's full potential.

IMPLICATIONS FOR MANAGEMENT:

Understanding Employee Motivation:
By understanding where employees are on the hierarchy, managers can better tailor their approach to motivation and
create a more supportive work environment.

Addressing Basic Needs:

Ensure employees have a safe and secure work environment, fair wages, and opportunities for growth.

Fostering a Sense of Belonging:

Encourage teamwork, social interaction, and create a positive work culture.

Recognizing Achievements:
Acknowledge and reward employee accomplishments to boost their esteem and motivation.

Providing Opportunities for Growth:

Offer training, development, and challenging tasks to help employees reach their full potential.

ERG Theory:
Clayton Alderfer modified Maslow's hierarchy into three categories: existence, relatedness, and growth (ERG).
Existence corresponds to psychological and safety needs; relatedness corresponds to social and self-esteem needs;
and growth corresponds to self-actualization needs.