X and Y Theory

According to McGregor, Theory X attitudes, that man was lazy and work was bad were
both pessimistic and counter productive. Theory X assumes that people have little
ambition, dislike work, want to avoid responsibility, and need to be closely supervised to
work effectively.
Theory Y, view that man wanted to work and work was good should become the
standard for humanizing the workplace. Theory Y offers a positive view, assuming that
people can exercise self-direction, accept responsibility and consider work to be as
natural as rest of play. McGregor believed that Theory Y assumptions best captured the
true nature of workers and should guide management practice. Table-2.4 depicts the
assumptions of both these theories:
Table-2.4: Theory X and Y Theory
Traditional Theory X Modern Theory Y
1) Man by nature is sluggish and shirker1 Man wants to work provided the conditions
are favourable.
2) Mostly people are not ambitious and are afraid to take responsibility.
2This theory takes people as enthusiastic, responsible and full of effort.
3) Under this people want to be directed, meaning thereby that they want somebody to
tell them to work and only they will work. 3It is thought that the employee has the quality
of self-direction and they do not feel the necessity of being directed by somebody else.
4) Motivation is limited to only physical and security needs. 4According to this, physical
and security needs motivate for a short time while it is continuous in case of selfactualization and esteem and status needs.
5) Strict control, threat and punishment are used in order to get work.
5If proper environment is provided a person himself performs his work laboriously.

Process of organisation
The managerial function of organizing may be called as the 'process of organizing'.
When the objectives have been set and policies framed, the necessary infrastructure of
organization has to be built up. The concentration goes to activities and functions.

These form 'the building blocks' of the organizational structure. There are no such rules
as to which will lead to the best organizational structure. But the following steps can be
of great help in the designing a suitable structure, which will laid in achieving enterprise
objectives :
1.Clear definition of objectives : The first step in developing an organizational structure
is to lay down its objectives in very clear terms. This will help in determining the type,
stability and basic characteristics of the organization. In fact, organization activities are
detailed in terms of objective to be achieved.
2. Determining activities : In order to achieve the objectives of the enterprise, certain
activities are necessary. The activities will depend upon the nature and size of the
enterprise. For example, a manufacturing concern will have production, marketing and
other activities. There is no production activity in retail establishment.
Each major activity is divided into smaller parts. For instance, production activity may be
further divided into purchasing of materials, plant layout, quality control, repairs and
maintenance, production research etc.
3. Assigning duties : The individual groups of activities are then allotted to different
individuals according to their ability and aptitude. The responsibility of every individual
should be defined clearly to avoid duplication and overlapping of efforts. Each person is
given a specific job suited to him and he is made responsible for its execution. Right
man is put in the right job.
4. Delegating authority : Every individual is given the authority necessary to perform the
assigned activity effectively. By authority we mean power to take decisions, issue
instructions, guiding the subordinates, supervise and control them. Authority delegated
to a person should commensurate with his responsibility. An individual cannot perform
his job without the necessary authority or power.
Authority flows from top to bottom and responsibility from bottom. Coordinating
activities : The activities and efforts of different individuals are then synchronized. Such
coordination is necessary to ensure effective performance of specialized functions.
Interrelationship between different job and individuals are clearly defined so that
everybody knows from whom he has to take orders and to whom he is answerable.
6. Providing physical facilities and right environment : The success of an organization
depends upon the provision of proper physical facilities and right environment. Whereas
it is important to have right persons on right jobs, it is equally important to have right
working environment. This is necessary for the smooth running and the prosperity of the
enterprise.

7. Establishment of structural relationship for overall control : It is very essential to

establish well defined clear-cut structural relationships among individuals and groups.
This will ensure overall control over the working of all departments and their coordinated
direction towards the achievements of predetermined goals of business.
It is thus clear from the foregoing analysis that organization provides a structural
framework of duties and responsibilities. It not only establishes authority relationship but
also provides a system of communication. The various processes of organization
explained above are technically performed through
(a) departmentation (b) delegation of authority and fixation of responsibilities and (c)
decentralization of authority subject to central control through centralization of decisionmaking.
3 PROCESS OF MOTIVATION
Motivated people are ill constant state of tension. This tension is relieved by drives
towards an activity and outcome that is meant to reduce or relieve such tension. The
greater the tension, the more activity will, be needed to bring about relief and hence
higher the motivation. Thus the basic motivation process can be depicted as follows:
12.3.1 Effort: The amount of effort put into the activity identifies the strength of the
person's work-related behaviour. Hard work usually reflects high motivation.
1Unsatisfied
2Need
3Tension or disequilbrium
4Action, movement or behaviour
5Goal,Equilibrium
6Feedback, possible modification of unsatisfied need

McCLELLAND'S THEORY OF NEEDS

Since the lower level needs in Maslow's model are generally satisfied by the business,
societal and legal systems, they are no longer strong motivators. Studies conducted by
Harvard psychologist David McClelland concluded that from the 373 organizational
behaviour point of view the most prominent need is the need for achievement, power
and affiliation. The primary motive is the "achievement motive" and is defined as a

desire to succeed in competitive situations based upon an established or perceived

standard of excellence."
Individuals with a strong "need for achievement" (known as n Ach), ask for, accept and
perform, well in challenging tasks which require creativity, ingenuity and hard work.
They are constantly preoccupied with a desire for improvement and look for situations in
which successful outcomes are directly correlated with their efforts so that they can
claim credit for success. They take- moderate and calculated risks and prefer to get
quick and precise feedback on their performance. They set more difficult but achievable
goals. For themselves, because; success with easily achievable goals hardly provides a
sense of achievement. They desire greater pleasure and excitement from solving a
complex problem than from financial incentives or simple praise.
The "need for power" (n Paw) is the desire is the desire to affect and control the
behaviour of other people and to manipulate the surroundings. Power motivation then
applied positively results in successful managers and leaders who prefer democratic
style of leadership. Power motivation, applied-negatively tends to create arrogant
autocratic leadership. The "need for affiliation" (n Aff) is related to social needs and
reflects a desire for friendly and warm relationships with others. Individuals tend to seek
affiliation with others who have similar beliefs, backgrounds and outlook on life. This
results in information of informal groups and informal organizations. It is evident in
social circles also that people mix with people of their own kind. Individuals with high "n
Aff tend to get involved in jobs that require a high amount of interpersonal contact; and
relations such as jobs in teaching and public relations. From organizational behaviour
point of view, these individuals are highly motivated to perform better in situations where
personal support and approval are tied to performance. They tend to avoid conflict and
exhibit strong conformity to the wishes of their friends.