Motivation Theory X

In this theory, which has been proven counter-effective in most modern practice, management assumes employees are inherently lazy and will avoid work if they can and that they inherently dislike work. As a result of this, management believes that workers need to be closely supervised and comprehensive systems of controls developed. A hierarchical structure is needed with narrow span of control at each and every level. According to this theory, employees will show little ambition without an enticing incentive program and will avoid responsibility whenever they can. According to Michael J. Papa, if the organizational goals are to be met, theory X managers rely heavily on threat and coercion to gain their employee's compliance. Beliefs of this theory lead to mistrust, highly restrictive supervision, and a punitive atmosphere. The Theory X manager tends to believe that everything must end in blaming someone. He or she thinks all prospective employees are only out for themselves. Usually these managers feel the sole purpose of the employee's interest in the job is money. They will blame the person first in most situations, without questioning whether it may be the system, policy, or lack of training that deserves the blame. A Theory X manager believes that his or her employees do not really want to work, that they would rather avoid responsibility and that it is the manager's job to structure the work and energize the employee. One major flaw of this management style is it is much more likely to cause Diseconomies of Scale in large businesses. This theory is a negative view of employees

A Theory X manager makes the following general assumptions: • • • • • • • Work is inherently distasteful to most people, who will attempt to avoid work whenever possible. Most people are not ambitious, have little desire for responsibility, and prefer to be directed. Most people have little capacity for creativity in solving organizational problems. Motivation occurs only at the physiological and security levels of Maslow's Hierarchy of Needs Most people are self-centered. As a result, they must be closely controlled and often coerced to achieve organizational objectives Most people resist change. Most people are gullible and not particularly intelligent.

Essentially, Theory X assumes that the primary source of most employee motivation is money, with security as a strong second.

Hard Approach vs. Soft Approach
Under Theory X , management approaches to motivation can range from a hard approach to a soft approach.

The hard approach to motivation relies on coercion, implicit threats, close supervision, and tight controls -- essentially an environment of command and control. The soft appoach is to be permissive and seek harmony with the hope that in return employees will cooperate when asked to do so. However, neither of these extremes is optimal. The hard approach results in hostility, purposely low-output, and hard-line union demands. The soft approach results in increasing desire for greater reward in exchange for diminishing work output. It would appear that the optimal approach to human resource management would be lie somewhere between these extremes. However, McGregor asserts that neither approach is appropriate since the fundamental assumptions of Theory X are incorrect.

The Problem with Theory X
Drawing on Maslow's Needs Hierarchy, McGregor argues that a need, once satisfied, no longer motivates. Under Motivation Theory X, the firm relies on money and benefits to satisfy employees' lower needs, and once those needs are satisfied the source of motivation is lost. Theory X management styles, in fact, hinder the satisfaction of higher-level needs. Consequently, the only way that employees can attempt to satisfy their higher level needs in their work is by seeking more compensation, so it is quite predictable that they will focus on monetary rewards. While money may not be the most effective way to self-fulfillment, in a Theory X environment it may be the only way. Under Theory X, people use work to satisfy their lower needs, and seek to satisfy their higher needs in their leisure time. Unfortunately, employees can be most productive when their work goals and higher level needs are in alignment. McGregor makes the point that a command and control environment is not effective because it relies on lower needs as levers of motivation, but in modern society those needs already are satisfied and thus no longer motivate. In this situation, one would expect employees to dislike their work, avoid responsibility, have no interest in organizational goals, resist change, etc., thus creating a self-fulfilling prophecy. From this reasoning, McGregor proposed an alternative: Theory Y.

Motivational Theory Y
In this theory, management assumes employees may be ambitious and selfmotivated and exercise self-control. It is believed that employees enjoy their mental and physical work duties. According to Papa, to them work is as natural as play. They possess the ability for creative problem solving, but their talents are underused in most organizations. Given the proper conditions, theory Y managers believe that employees will learn to seek out and accept responsibility and to exercise self-control and self-direction in accomplishing objectives to which they are committed. A Theory Y manager believes that, given the right conditions, most people will want to do well at work. They believe that the satisfaction of doing a good job is a strong motivation. Many people interpret Theory Y as a positive set of beliefs about workers. A close reading of The Human Side of Enterprise reveals that McGregor simply argues for managers to be open to a more positive view of workers and the possibilities that this creates. He thinks that Theory Y managers are more likely than Theory X managers to develop the climate of trust with employees that is required for human

resource development. It's here through human resource development that is a crucial aspect of any organization. This would include managers communicating openly with subordinates, minimizing the difference between superior-subordinate relationships, creating a comfortable environment in which subordinates can develop and use their abilities. This climate would include the sharing of decision making so that subordinates have say in decisions that influence them. This theory is a positive view to the employees The higher-level needs of esteem and self-actualization are continuing needs in that they are never completely satisfied. As such, it is these higher-level needs through which employees can best be motivated. In strong contrast to Theory X, a Theory Y manager makes the following general assumptions: • • • • • • Work can be as natural as play if the conditions are favorable. People will be self-directed and creative to meet their work and organizational objectives if they are committed to them. People will be committed to their quality and productivity objectives if rewards are in place that address higher needs such as self-fulfillment. The capacity for creativity spreads throughout organizations. Most people can handle responsibility because creativity and ingenuity are common in the population. Under these conditions, people will seek responsibility.

Under these assumptions, there is an opportunity to align personal goals with organizational goals by using the employee's own need for fulfillment as the motivator. McGregor stressed that Theory Y management does not imply a soft approach. McGregor recognized that some people may not have reached the level of maturity assumed by Theory Y and therefore may need tighter controls that can be relaxed as the employee develops.

Applying Theory Y Management - Business Implications
If Theory Y holds true, an organization can use these principles of scientific management to improve employee motivation: • Decentralization and Delegation - If firms decentralize control and reduce the number of levels of management, managers will have more subordinates and consequently will be forced to delegate some responsibility and decision making to them. Job Enlargement - Broadening the scope of an employee's job adds variety and opportunities to satisfy ego needs. Participative Management - Consulting employees in the decision making process taps their creative capacity and provides them with some control over their work environment. Performance Appraisals - Having the employee set objectives and participate in the process of evaluating how well they were met.

• • •

If properly implemented, such an environment would result in a high level of motivation as employees work to satisfy their higher level personal needs through their jobs.

Theory z
Theory Z is an approach to management based upon a combination of American and Japanese management philosophies and characterized by, among other things, longterm job security, consensual decision making, slow evaluation and promotion procedures, and individual responsibility within a group context. Proponents of Theory Z suggest that it leads to improvements in organizational performance. The following sections highlight the development of Theory Z, Theory Z as an approach to management including each of the characteristics noted above, and an evaluation of Theory Z. Realizing the historical context in which Theory Z emerged is helpful in understanding its underlying principles. The following section provides this context.

THEORY Z AS AN APPROACH TO MANAGEMENT
Theory Z represents a humanistic approach to management. Although it is based on Japanese management principles, it is not a pure form of Japanese management. Instead, Theory Z is a hybrid management approach combining Japanese management philosophies with U.S. culture. In addition, Theory Z breaks away from McGregor's Theory Y. Theory Y is a largely psychological perspective focusing on individual dyads of employer-employee relationships while Theory Z changes the level of analysis to the entire organization. According to Professor Ouchi, Theory Z organizations exhibit a strong, homogeneous set of cultural values that are similar to clan cultures. The clan culture is characterized by homogeneity of values, beliefs, and objectives. Clan cultures emphasize complete socialization of members to achieve congruence of individual and group goals. Although Theory Z organizations exhibit characteristics of clan cultures, they retain some elements of bureaucratic hierarchies, such as formal authority relationships, performance evaluation, and some work specialization. Proponents of Theory Z suggest that the common cultural values should promote greater organizational commitment among employees. The primary features of Theory Z are summarized in the paragraphs that follow

Contingency Theory
Basically, contingency theory asserts that when managers make a decision, they must take into account all aspects of the current situation and act on those aspects that are key to the situation at hand. Basically, it’s the approach that “it depends.” For example, the continuing effort to identify the best leadership or management style might now conclude that the best style depends on the situation. If one is leading troops in the Persian Gulf, an autocratic style is probably best (of course, many might argue here, too). If one is leading a hospital or university, a more participative and faContingency theory attempts to provide a perspective on organizations and
management based on the integration of prior theories. Contingency theory starts with the theme of "it

depends," arguing that the solution to any one managerial problem is contingent on the factors that are impinging on the situation. For instance, where little variation in materials exists in the production process, it is appropriate to break down the work into highly routine tasks. However, where variation is high, requiring many judgments concerning which material is appropriate and which is not, managers will want to avoid making tasks routine.cilitative leadership style is probably best. One of the first applications of contingency theory came from research conducted by two British scholars, Thomas Burns and G. M. Stalker. After studying several industrial firms in England, such as textile mills and electronics manufacturers, they concluded that the appropriate managerial techniques were highly dependent on the kind of task the orgBy applying contingency theory to the study of management, you will be able to identify and to solve problems under different situations. You will recognize that the successful application of a technique in one situation does not guarantee success in another. Rather, you will be able to examine each situation in terms of how it is affected by the contextual, organizational, and human dimensions. As a result, your overall ability to correct problems and to become more effective as a manager will increase. anization was trying to accomplish.

Scientific management (also called Taylorism or the Taylor system) is a theory of management that analyzes and synthesizes workflows, with the objective of improving labor productivity. The core ideas of the theory were developed by Frederick Winslow Taylor in the 1880s and 1890s, and were first published in his monographs, Shop Management (1905)[1] and The Principles of Scientific Management (1911).[2] Taylor believed that decisions based upon tradition and rules of thumb should be replaced by precise procedures developed after careful study of an individual at work. Its application is contingent on a high level of managerial control over employee work practices.

Taylorism is a variation on the theme of efficiency; it is a late 19th and early 20th century instance of the larger recurring theme in human life of increasing efficiency, decreasing waste, and using empirical methods to decide what matters, rather than uncritically accepting preexisting ideas of what matters. Thus it is a chapter in the larger narrative that also includes, for example, the folk wisdom of thrift, time and motion study, Fordism, and lean manufacturing. It overlapped considerably with the Efficiency Movement, which was the broader cultural echo of scientific management's impact on business mMass production methods
Taylorism is often mentioned along with Fordism, because it was closely associated with mass production methods in manufacturing factories. Taylor's own name for his approach was scientific management. This sort of task-oriented optimization of work tasks is nearly ubiquitous today in industry, and has made most industrial work

menial, repetitive and tedious; this can be noted, for instance, in assembly lines and fast-food restaurants. Taylor's methods began from his observation that, in general, workers forced to perform repetitive tasks work at the slowest rate that goes unpunished. This slow rate of work (which he called "soldiering", but might nowadays be termed by those in charge as "loafing" or "malingering" or by those on the assembly line as "getting through the day"), he opined, was based on the observation that, when paid the same amount, workers will tend to do the amount of work the slowest among them does: this reflects the idea that workers have a vested interest in their own well-being, and do not benefit from working above the defined rate of work when it will not increase their compensation. He therefore proposed that the work practice that had been developed in most work environments was crafted, intentionally or unintentionally, to be very inefficient in its execution. From this he posited that there was one best method for performing a particular task, and that if it were taught to workers, their productivity would go up. Taylor introduced many concepts that were not widely accepted at the time. For example, by observing workers, he decided that labor should include rest breaks so that the worker has time to recover from fatigue. He proved this with the task of unloading ore: workers were taught to take rest during work and as a result production increased. Today's armies employ scientific management. Of the key points listed, all but wage incentives for increased output are used by modern military organizations. Wage incentives rather appear in the form of skill bonuses for enlistments.

Division of labor
Unless people manage themselves, somebody has to take care of administration, and thus there is a division of work between workers and administrators. One of the tasks of administration is to select the right person for the right job: the labor should include rest breaks so that the worker has time to recover from fatigue.Now one of the very first requirements for a man who is fit to handle pig iron as a regular occupation is that he shall be so stupid and so phlegmatic that he more nearly resembles in his mental make-up the ox than any other type. The man who is mentally alert and intelligent is for this very reason entirely unsuited to what would, for him, be the grinding monotony of work of this character. Therefore the workman who is best suited to handling pig iron is unable to understand the real science of doing this class of work. (Taylor 1911, 59) anagers specifically.

The behavioral management theory is often called the human relations movement because it addresses the human dimension of work. Behavioral theorists believed that a better understanding of human behavior at work, such as motivation, conflict, expectations, and group dynamics, improved productivity.

The theorists who contributed to this school viewed employees as individuals, resources, and assets to be developed and worked with — not as machines, as in the past. Several individuals and experiments contributed to this theory. Elton Mayo's contributions came as part of the Hawthorne studies, a series of experiments that rigorously applied classical management theory only to reveal its shortcomings. The Hawthorne experiments consisted of two studies conducted at the Hawthorne Works of the Western Electric Company in Chicago from 1924 to 1932. The first study was conducted by a group of engineers seeking to determine the relationship of lighting levels to worker productivity. Surprisingly enough, they discovered that worker productivity increased as the lighting levels decreased — that is, until the employees were unable to see what they were doing, after which performance naturally declined. A few years later, a second group of experiments began. Harvard researchers Mayo and F. J. Roethlisberger supervised a group of five women in a bank wiring room. They gave the women special privileges, such as the right to leave their workstations without permission, take rest periods, enjoy free lunches, and have variations in pay levels and workdays. This experiment also resulted in significantly increased rates of productivity. In this case, Mayo and Roethlisberger concluded that the increase in productivity resulted from the supervisory arrangement rather than the changes in lighting or other associated worker benefits. Because the experimenters became the primary supervisors of the employees, the intense interest they displayed for the workers was the basis for the increased motivation and resulting productivity. Essentially, the experimenters became a part of the study and influenced its outcome. This is the origin of the term Hawthorne effect, which describes the special attention researchers give to a study's subjects and the impact that attention has on the study's findings. The general conclusion from the Hawthorne studies was that human relations and the social needs of workers are crucial aspects of business management. This principle of human motivation helped revolutionize theories and practices of management. Abraham Maslow, a practicing psychologist, developed one of the most widely recognized need theories, a theory of motivation based upon a consideration of human needs . His theory of human needs had three assumptions:

• Human needs are never completely satisfied. • Human behavior is purposeful and is motivated by the need for satisfaction. • Needs can be classified according to a hierarchical structure of importance, from the lowest to
highest. Maslow broke down the needs hierarchy into five specific areas:

• Physiological needs. Maslow grouped all physical needs necessary for maintaining basic human
well-being, such as food and drink, into this category. After the need is satisfied, however, it is no longer is a motivator.

Safety needs. These needs include the need for basic security, stability, protection, and freedom from fear. A normal state exists for an individual to have all these needs generally satisfied. Otherwise, they become primary motivators. rewards, shifting the focus to the role of individuals in an organization's performance.

Bureaucracy is the collective organizational structure, procedures, protocols, and set of regulations in place to manage activity, usually in large organizations and government. As opposed to adhocracy, it is represented by standardized procedure (rule-following) that guides the execution of most or all processes within the body; formal division of powers; hierarchy; and relationships, intended to anticipate needs and improve efficiency. A bureaucracy traditionally does not create policy but, rather, enacts it. Law, policy, and regulation normally originates from a leadership, which creates the bureaucracy to put them into practice. In reality, the interpretation and execution of policy, etc. can lead to informal influence. A bureaucracy is directly responsible to the leadership that creates it, such as a government executive or board of directors. Conversely, the leadership is usually responsible to an electorate, shareholders, membership or whoever is intended to benefit. As a matter of practicality, the bureaucracy is where the individual will interface with an organization such as a government etc., rather than directly with its leadership. Generally, larger organizations result in a greater distancing of the individual from the leadership, which can be consequential or intentional by design.

Bureaucracy is an important macrolevel unit of analysis, but not so all-important that every theory of bureaucracy is a theory of public administration or a theory about society as a whole. Opinions vary over the importance as well as definition of bureaucracy. Hill (1991) boils down the scientific debate into three opinions: (1) those who say bureaucracies are powerful and inevitably dominate the policy process; (2) those who say bureaucracies are in-between powerful and powerless and best described as pathological entities which only have instrumental influence on policy; and (3) those who say bureaucracies may be significant, but are not all that powerful as actors in the political process. Clearly, a diversity of opinion exists, and the literature is full of value-laden (normative) as well as value-neutral (empirical) conceptualizations Bureaucracies have been blamed for everything from "passing the buck" to the downfall of civilization. Some common stereotypes include being wasteful, inefficient, overly large, and a threat to liberty. Bureaucracies are often criticized for being "out of touch" and exhibiting the qualities of sluggishness, complacency, and arrogance. Everybody seems quick to point the finger of blame at bureaucracy when things go wrong, including media, politicians, special interests, academicians, and average citizens. Working in a bureaucracy is supposed to be thankless, boring, mindless, stupid work. It's not that they don't return your calls (that would be pre-bureaucratic behavior, or laziness), it's just that bureaucracies can only handle routine matters, and if something is out of the ordinary, it's "I have to check with my supervisor." Bureaucracy is the whipping boy for when people are really referring to organizations which don't work, don't plan, and don't innovate.