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UID-D20MBA11200

ASSIGNMENT COVER PAGE (Theory)


Assignment No: 1
Programme Name : MBA Semester: 1st Credit: 3
Course Title: MANAGEMENT Course Code:MBA603
PRACTICE & ORGANISATIONAL
BEHAVIOUR
Submitted Date: 29/01/2021 Last date of Submission: 30/01/2021
Max. Marks: 30 Weightage: 15 Marks (50%)

Assignment Submission Guidelines:


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Fill page numbers as per your theory assignment in the table below:
Question No. Sec.A 1-10 Sec.B-1 Sec.B-2 Sec.B-3 Sec.B-4 Sec.B-5 Sec.B-6 Sec.B-7

Page No 2 3-4 5-6 6-9 9-11 11-13

Harmender.
SECTION A
Answer 1 : A

Answer 2 : B

Answer 3 : C

Answer 4 : A

Answer 5 : C

Answer 6 : D

Answer 7 : D

Answer 8 : A

Answer 9 : D

Answer 10 : A
SECTION B

Answer 1

There are multiple definitions of Organisational behaviour :


“Organisational behaviour is a subset of management activities concerned with understanding,
predicting and influencing individual behaviour in organisational setting.”—Callahan, Fleenor and
Kudson. “Organisational behaviour is a branch of the Social Sciences that seeks to build theories that
can be applied” to predicting, understanding and controlling behaviour in work
organisations.”Raman J. Aldag.
“Organisational behaviour is the study and application of knowledge about how people act within an
organisation. It is a human tool for human benefit. It applies broadly to the behaviour of people in all
types of organisation.”— Newstrom and Davis.
“Organisational behaviour is directly concerned with the understanding, production and control of
human behaviour in organisations.”—Fred Luthans.
“Organisational behaviour is a field of study that investigates the impact that individuals, groups and
structure have on behaviour within the organisations for the purpose of applying such knowledge
toward improving an organization’s effectiveness.”—Stephens P. Robbins.
In short, organisational behaviour revolves around two fundamental components:
1. The nature of the man.
2. The nature of the organisation.
In other words, organisational behaviour may be organisation of individual’s behaviour in relation to
physical means and resources so as to achieve the desired objective of the organisation.
Organisational Behaviour, Organisational Theory, Organisational Psychology and Human Resource
Management:
Organisational behaviour is generally confused with organisational theory, organisational
psychology, and human resource management. Organisational psychology restricts itself to
psychological factors only whereas organisational behaviour considers and combines all the branches
of study e.g. Science, technology, economics, anthropology, psychology and so on and so forth.
Organisational behaviour is the basis of human resource management and development. The former
is concept oriented whereas the latter is concerned with the technology of human development. The
variables influencing human development are scientifically studied under organisational behaviour.
Human resource management, is activated, directed and channelized by the application of the
knowledge of organisational behaviour which has become a field of study, research and application
for the development of human resources and the organisation as a whole. Thus, we can say that all
these terms are interrelated but not synonymous with each other.
Characteristics of Organisational Behavior:
From The Above Definitions, The Following Features of Organisational Behaviour Emerge:
1. Behavioural Approach to Management:
Organisational behaviour is that part of whole management which represents the behavioural
approach to management. Organisational behaviour has emerged as a distinct field of study because
of the importance of human behaviour in organisations.
2. Cause and Effect Relationship:
Human behaviour is generally taken in terms of cause and effect relationship and not in philosophical
terms. It helps in predicting the behaviour of individuals. It provides generalizations that managers
can use to anticipate the effect of certain activities on human behaviour.
3. Organisational Behaviour is a Branch of Social Sciences:
Organisational behaviour is heavily influenced by several other social sciences viz. psychology,
sociology and anthropology. It draws a rich array of research from these disciplines.
4. Three Levels of Analysis:
Organisational behaviour encompasses the study of three levels of analysis namely individual
behaviour, inter-individual behaviour and the behaviour of organisations themselves. The field of
organisational behaviour embraces all these levels as being complementary to each other.
5. A Science as well as an Art:
Organisational behaviour is a science as well as an art. The systematic knowledge about human
behaviour is a science and the application of behavioural knowledge and skills is an art.
Organisational behaviour is not an exact science because it cannot exactly predict the behaviour of
people in organisations. At best a manager can generalize to a limited extent and in many cases, he
has to act on the basis of partial information.
6. A Body of Theory, Research and Application:
Organisational behaviour consists of a body of theory, research and application which helps in
understanding the human behaviour in organisation. All these techniques help the managers to solve
human problems in organisations.
7. Beneficial to both Organisation and Individuals:
Organisational behaviour creates an atmosphere whereby both organisation and individuals are
benefitted by each other. A reasonable climate is created so that employees may get much needed
satisfaction and the organisation may attain its objectives.
8. Rational Thinking:
Organisational behaviour provides a rational thinking about people and their behaviour. The major
objective of organisational behaviour is to explain and predict human behaviour in organisations, so
that result yielding situations can be created.
Nature of Organisational Behavior:
Organisational behaviour in the study of human behaviour in the organisations. Whenever an
individual joins an organisation he brings with him unique set of personal characteristics,
experiences from other organisations and a personal background. At the first stage organisational
behaviour must look at the unique perspective that each individual brings to the work setting.
The second stage of organisational behaviour is to study the dynamics of how the incoming
individuals interact with the broader organisation. No individual can work in isolation. He comes
into contact with other individuals and the organisation in a variety of ways. The individual who
joins a new organisation has to come into contact with the co-workers, managers, formal policies and
procedures of the organisation etc.
Over the time, he is affected by his work experience and the organisation as well as his personal
experiences and maturity. On the other hand, the organisation is also affected by the presence or
absence of the individual. Thus, it is essential that OB must study the ways in which the individuals
and organisation interact with each other.
The organisational behaviour must be studied from the perspective of the organisation itself because
an organisation exists before a particular individual joins in and continues to exist after he or she has
left the organisation. Thus, OB is the study of human behaviour in the organisation, the individual-
organisation interaction and the organisation itself. And these factors are influenced by the external
environment in which the individuals and the organisation exist.
Thus, we can say that we cannot study individual behaviour completely without learning something
about the organisation. On the other hand, we cannot study the organisations without studying the
behaviour of the individuals working in it. This is because the organisation influences and is
influenced by the people working in it. Moreover, both the individuals and the organisation are
influenced by the external environment. Thus, the field of organisational behaviour is a complex
field. It seeks to throw light on the entire canvas of human factor in the organisations which will
include the causes and effects of such behaviour.
Answer 2

In a world with decreasing birth rates, longer life expectancy and better working conditions, the
employee longevity is increasing. The results are Baby Boomer, Generation X, and Millennial
cohorts working alongside each other. As each generation has different work expectations, this
multigenerational workforce presents a critical challenge for business managers.
The workplace is becoming multigenerational. Now and in the future, different generations with
different backgrounds, cultures, expectations and work styles will be expected to work alongside
each other in an efficient manner.
Managing across generations is not an easy tasks, however, and a recent human resource
management study of organizations with more than 500 employees reported that 58% of the
managers experience conflicts between younger and older employees on a frequent basis.
For managers, an understanding of the multigenerational working behaviours is necessary in order to
be able to handle these conflicts and create an efficient and inclusive workplace. Below we present
some of the key challenges in this modern workforce, and how managers effectively can deal with
them.

Challenge no. 1: Age


A preference exists among employees to work and interact with people of similar age. In a world of
age-diverse organizations, this will create new workplace challenges for managers to learn the
intentions and specific traits of all ages and find a way to integrate them in cohesive teams. It will
require creating teams in such a way where older generations of employees best can apply their
extensive experience, and young generations can add to the quality of the workforce through
providing newer skillsets and techniques.
To make this work, managers must create a workplace environment that is flexible enough to suit the
different work styles and attitudes across age groups. For older generations, this might mean
focusing on employee wellness and work-life balance, whereas it for younger generations might
mean a flexible work environment with a chance to work from whenever, wherever.
Emphasis must also be placed on improving communication between the diverse generations to
enhance the cross-generational understanding of each other’s strengths and weaknesses.
Managers who can build on the strengths of each generation and address the arising problems will
without a doubt be the most successful in the future.

Challenge no. 2: Values


Each of the generational cohorts brings different values to the workplace. Influential events such as
economic recessions, periods of war and developments within technology shaped values in a way
differing from one generation to the other.
While Baby Boomers value individuality and place importance on material success, Generation X
are more focused on flexible work arrangements, family time and faster promotional opportunities.
And Millennials value social activities, personal freedom and workplace engagement.
These values transmit to the workplace. Baby Boomers expect younger generations of employees to
have the same commitment to long work hours and respect hierarchical structures which they grew
up with.
With strong emphasis on the family, Generation X on the other hand enjoy flexible work hours and
prefer less supervision as well. This combined with the generation of Millennials, who value time off
of work, sets a stage for a conflicting atmosphere at work.
Understanding the differences in values will be vital to manage the diverse attitudes and drive the
organization forward. Business managers must be focused on honoring the diverse ways of
contributing to the workplace and acknowledge the efforts of each team member, regardless of the
work style.
Challenge no. 3: Communication
The differences in styles of communication between young and older employees may be obvious.
Millennial rely on utilizing social media or other digital technologies to communicate with people in
their environment, whereas Baby Boomers and older Generation X’s prefer communicating face-to-
face or via phone calls and emails.
Also, the communication style of the younger generations is more informal and relies heavily on the
use of abbreviations, compared to older generations of employees. If not handled correctly, these
communicational differences can lead to serious organizational battles.

Breaking the multigenerational barriers


There is no doubt that business managers must adjust the style of management to improve
effectiveness among the generations. The multigenerational setting requires managers to educate
themselves and address the needs of all ages within the respective workplaces.
For business managers to be successful, the following management techniques and strategies can be
considered to overcome the generational barriers in the workplace:
 Demonstrate flexibility. Different age groups have different personal and professional needs.
Make sure to create a workplace that is open and flexible to different ways of working and
work attitudes.
 Managers must make sure to use multiple communication channels when addressing their
employees. This includes different meeting formats, style of personal communication and use
digital media.
 As different generations bring different expectations to the office, frequent feedback,
evaluation and encouragement will be increasingly important for managers to implement as
part of the daily work routines.
 Create space for knowledge sharing. Let the older and more experienced generations of
employees act as career mentors for the younger generation, while at the same time creating
an environment where younger generations can inspire the older workers with new innovative
solutions and ways of working.

Answer 3

A. Functions of management
Management has been described as a social process involving responsibility for economical and
effective planning & regulation of operation of an enterprise in the fulfillment of given purposes. It is
a dynamic process consisting of various elements and activities. These activities are different from
operative functions like marketing, finance, purchase etc. Rather these activities are common to each
and every manger irrespective of his level or status.
Different experts have classified functions of management. According to George & Jerry, “There are
four fundamental functions of management i.e. planning, organizing, actuating and controlling”.
According to Henry Fayol, “To manage is to forecast and plan, to organize, to command, & to
control”. Whereas Luther Gullick has given a keyword ’POSDCORB’ where P stands for Planning,
O for Organizing, S for Staffing, D for Directing, Co for Co-ordination, R for reporting & B for
Budgeting. But the most widely accepted are functions of management given by KOONTZ and
O’DONNEL i.e. Planning, Organizing, Staffing, Directing and Controlling.
For theoretical purposes, it may be convenient to separate the function of management but practically
these functions are overlapping in nature i.e. they are highly inseparable. Each function blends into
the other & each affects the performance of others.
1. Planning
It is the basic function of management. It deals with chalking out a future course of action &
deciding in advance the most appropriate course of actions for achievement of pre-
determined goals. According to KOONTZ, “Planning is deciding in advance - what to do,
when to do & how to do. It bridges the gap from where we are & where we want to be”. A
plan is a future course of actions. It is an exercise in problem solving & decision making.
Planning is determination of courses of action to achieve desired goals. Thus, planning is a
systematic thinking about ways & means for accomplishment of pre-determined goals.
Planning is necessary to ensure proper utilization of human & non-human resources. It is all
pervasive, it is an intellectual activity and it also helps in avoiding confusion, uncertainties,
risks, wastages etc.
2. Organizing
It is the process of bringing together physical, financial and human resources and developing
productive relationship amongst them for achievement of organizational goals. According to
Henry Fayol, “To organize a business is to provide it with everything useful or its functioning
i.e. raw material, tools, capital and personnel’s”. To organize a business involves determining
& providing human and non-human resources to the organizational structure. Organizing as a
process involves:
1. Identification of activities.
2. Classification of grouping of activities.
3. Assignment of duties.
4. Delegation of authority and creation of responsibility.
5. Coordinating authority and responsibility relationships.
3. Staffing
It is the function of manning the organization structure and keeping it manned. Staffing has
assumed greater importance in the recent years due to advancement of technology, increase in
size of business, complexity of human behavior etc. The main purpose o staffing is to put
right man on right job i.e. square pegs in square holes and round pegs in round holes.
According to Kootz & O’Donell, “Managerial function of staffing involves manning the
organization structure through proper and effective selection, appraisal & development of
personnel to fill the roles designed un the structure”. Staffing involves:
1. Manpower Planning (estimating man power in terms of searching, choose the person
and giving the right place).
2. Recruitment, Selection & Placement.
3. Training & Development.
4. Remuneration.
5. Performance Appraisal.
6. Promotions & Transfer.
4. Directing
It is that part of managerial function which actuates the organizational methods to work
efficiently for achievement of organizational purposes. It is considered life-spark of the
enterprise which sets it in motion the action of people because planning, organizing and
staffing are the mere preparations for doing the work. Direction is that inert-personnel aspect
of management which deals directly with influencing, guiding, supervising, motivating sub-
ordinate for the achievement of organizational goals. Direction has following elements:
1. Supervision
2. Motivation
3. Leadership
4. Communication
5. Supervision- implies overseeing the work of subordinates by their superiors. It is the act of
watching & directing work & workers.
Motivation- means inspiring, stimulating or encouraging the sub-ordinates with zeal to work.
Positive, negative, monetary, non-monetary incentives may be used for this purpose.
Leadership- may be defined as a process by which manager guides and influences the work
of subordinates in desired direction.
Communications- is the process of passing information, experience, opinion etc from one
person to another. It is a bridge of understanding.
6. Controlling
It implies measurement of accomplishment against the standards and correction of deviation
if any to ensure achievement of organizational goals. The purpose of controlling is to ensure
that everything occurs in conformities with the standards. An efficient system of control helps
to predict deviations before they actually occur. According to Theo Haimann, “Controlling is
the process of checking whether or not proper progress is being made towards the objectives
and goals and acting if necessary, to correct any deviation”. According to Koontz & O’Donell
“Controlling is the measurement & correction of performance activities of subordinates in
order to make sure that the enterprise objectives and plans desired to obtain them as being
accomplished”. Therefore controlling has following steps:
1. Establishment of standard performance.
2. Measurement of actual performance.
3. Comparison of actual performance with the standards and finding out deviation if any.
4. Corrective action.

B. Process of MBO

Management by objectives (MBO) is a strategic management model that aims to improve the
performance of an organization by clearly defining objectives that are agreed to by both management
and employees. According to the theory, having a say in goal setting and action plans encourages
participation and commitment among employees, as well as aligning objectives across the
organization.
 
KEY TAKEAWAYS
 Management by objectives (MBO) is a strategic management model that aims to improve
organizational performance by clearly defining objectives that are agreed to by both
management and employees.
 According to the theory, having a say in goal setting and action plans encourages
participation and commitment among employees, as well as aligning objectives across the
organization.
 The strategy was formulated by Peter Drucker in the 1950s, detailing five steps that
organizations should follow.
 Critics of MBO argue that it leads to employees trying to achieve the set goals by any means
necessary, often at the cost of the company.
Management by Objectives (MBO) in Practice
Management by objectives outlines five steps that organizations should use to put the management
technique into practice.

1. The first step is to either determine or revise organizational objectives for the entire company.
This broad overview should be derived from the firm's mission and vision.
2. The second step is to translate the organizational objectives to employees. Drucker used the
acronym SMART (specific, measurable, acceptable, realistic, time-bound) to express the
concept.
3. Step three is stimulating the participation of employees in setting individual objectives. After
the organization's objectives are shared with employees, from the top to the bottom,
employees should be encouraged to help set their own objectives to achieve these larger
organizational objectives. This gives employees greater motivation since they have greater
empowerment.
4. Step four involves monitoring the progress of employees. In step two, a key component of the
objectives was that they are measurable in order for employees and managers to determine
how well they are met.
5. The fifth step is to evaluate and reward employee progress. This step includes honest
feedback on what was achieved and not achieved for each employee.

Answer 4

Learning theories are an organized set of principles explaining how individuals acquire, retain, and
recall knowledge.  By studying and knowing the different learning theories, we can better understand
how learning occurs.  The principles of the theories can be used as guidelines to help select
instructional tools, techniques and strategies that promote learning. 
Three learning theories:
 Behaviorism
 Cognitive Information Processing (Cognitivism)
 Constructivism    

Behaviorist
New behaviors or changes in behaviors are acquired through associations between stimuli and
responses

Cognitive
Information processing leads to understanding and retention

Constructivist
We construct our own knowledge of the world based on individual experiences 
 

 
 

Behaviorism
Behaviorism stems from the work of B.F. Skinner and the concept of operant conditioning. 
Behaviorism theorists believe that knowledge exists independently and outside of people.  They view
the learner as a blank slate who must be provided the experience.  Behaviorists believe that learning
actually occurs when new behaviors or changes in behaviors are acquired through associations
between stimuli and responses.  Thus, association leads to a change in behavior. 
 

Learning process
The learning process is based on objectively observable changes in behavior.  Behavior theorists
define learning simply as the acquisition of a new behavior or change in behavior.  The theory is that
learning begins when a cue or stimulus from the environment is presented and the learner reacts to
the stimulus with some type of response.  Consequences that reinforce the desired behavior are
arranged to follow the desired behavior (e.g. study for a test and get a good grade).  The new
behavioral pattern can be repeated so it becomes automatic.  The change in behavior of the learner
signifies that learning has occurred.  Teachers use Behaviorism when they reward or punish student
behaviors.
Examples and applications of behaviorist learning theory:
 Drill / Rote work
 Repetitive practice
 Bonus points (providing an incentive to do more)
 Participation points (providing an incentive to participate)
 Verbal Reinforcement (saying “good job”)
 Establishing Rules
Unfortunately, Behaviorism instruction does not prepare the learner for problem solving or creative
thinking.  Learners do what they are told and do not take the initiative to change or improve things. 
The learner is only prepared for recall of basic facts, automatic responses or performing tasks.  

Cognitive Information Processing (Cognitivism)


Cognitive information processing is based on the thought process behind the behavior.  The theory is
based on the idea that humans process the information they receive, rather than merely responding to
stimuli (i.e. that think about what is happening).  The changes in behavior are observed, but only as
an indictor to what is going on in the learner’s head.  The learner’s mind is like a mirror from which
new knowledge and skills will be reflected.
Cognitive information processing is used when the learner plays an active role in seeking ways to
understand and process information that he or she receives and relate it to what is already known and
stored within memory.  Cognitive learning theories are credited to Jean Piaget.
 Learning process
Cognitive learning theorists believe learning occurs through internal processing of information. 
Unlike behaviorism, cognitive information processing is governed by an internal process rather than
by external circumstance.  The cognitive approach to learning theory pays more attention to what
goes on inside the learner’s head and focuses on mental processes rather than observable behavior.  
Changes in behavior are observed, and used as indicators as to what is happening inside the learner’s
mind.  
Learning involves the reorganization of experiences, either by attaining new insights or changing old
ones.  Thus, learning is a change in knowledge which is stored in memory, and not just a change in
behavior.
Examples and applications of cognitive learning theory:
 Classifying or chunking information
 Linking Concepts (associate new content with something known)
 Providing Structure (organizing your lecture in efficient and meaningful ways)
 Real world examples
 Discussions
 Problem solving
 Analogies
 Imagery / providing pictures
 Mnemonics

Constructivism
Constructivism is based on the premise that we all construct our own perspective of the world, based
on individual experiences and internal knowledge.  Learning is based on how the individual
interprets and creates the meaning of his or her experiences.  Knowledge is constructed by the learner
and since everyone has a different set of experiences and perceptions, learning is unique and
different for each person.
Summary :
All three theories are important to understand.  When deciding which strategies to use, it is important
to consider:
 the level of knowledge of the learners
 the thought processing demands, and
 the desired outcome (generation of new ideas or a single answer)

Answer 6

What is Motivation ?
Motivation is the word derived from the word ’motive’ which means needs, desires, wants or drives
within the individuals. It is the process of stimulating people to actions to accomplish the goals. In
the work goal context the psychological factors stimulating the people’s behaviour can be -
 Desire for money
 Success
 Recognition
 Job-satisfaction
 Team work, etc
One of the most important functions of management is to create willingness amongst the employees
to perform in the best of their abilities. Therefore the role of a leader is to arouse interest in
performance of employees in their jobs. The process of motivation consists of three stages:-
1. A felt need or drive
2. A stimulus in which needs have to be aroused
3. When needs are satisfied, the satisfaction or accomplishment of goals.
Therefore, we can say that motivation is a psychological phenomenon which means needs and wants
of the individuals have to be tackled by framing an incentive plan.
 
McGregor’s Theory X and Theory Y
The idea that a manager’s attitude has an impact on employee motivation was originally proposed by
Douglas McGregor, a management professor at the Massachusetts Institute of Technology during
the 1950s and 1960s. In his 1960 book, The Human Side of Enterprise, McGregor proposed two
theories by which managers perceive and address employee motivation. He referred to these
opposing motivational methods as Theory X and Theory Y management. Each assumes that the
manager’s role is to organize resources, including people, to best benefit the company. However,
beyond this commonality, the attitudes and assumptions they embody are quite different.
Theory X
According to McGregor, Theory X management assumes the following:

 Work is inherently distasteful to most people, and they 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 aptitude 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 unintelligent.

Essentially, Theory X assumes that the primary source of employee motivation is monetary, with
security as a strong second. Under Theory X, one can take a hard or soft approach to getting results.
The hard approach to motivation relies on coercion, implicit threats, micromanagement, and tight
controls— essentially an environment of command and control. The soft approach, however, is to be
permissive and seek harmony in the hopes that, in return, employees will cooperate when asked.
However, neither of these extremes is optimal. The hard approach results in hostility, purposely low
output, and extreme union demands. The soft approach results in a growing desire for greater reward
in exchange for diminished work output.
It might seem that the optimal approach to human resource management would lie somewhere
between these extremes. However, McGregor asserts that neither approach is appropriate, since the
basic assumptions of Theory X are incorrect.
Drawing on Maslow’s hierarchy of needs, McGregor argues that a need, once satisfied, no longer
motivates. The company uses monetary rewards and benefits to satisfy employees’ lower-level
needs. Once those needs have been satisfied, the motivation disappears. Theory X management
hinders the satisfaction of higher-level needs because it doesn’t acknowledge that those needs are
relevant in the workplace. As a result, the only way that employees can attempt to meet higher-level
needs at work is to seek more compensation, so, predictably, they focus on monetary rewards. While
money may not be the most effective way to self-fulfillment, it may be the only way available.
People will use work to satisfy their lower needs and seek to satisfy their higher needs during their
leisure time. However, employees can be most productive when their work goals align with their
higher-level needs.
McGregor makes the point that a command-and-control environment is not effective because it relies
on lower needs for motivation, but in modern society those needs are mostly satisfied and thus are no
longer motivating. In this situation, one would expect employees to dislike their work, avoid
responsibility, have no interest in organizational goals, resist change, etc.—creating, in effect, a self-
fulfilling prophecy. To McGregor, a steady supply of motivation seemed more likely to occur under
Theory Y management.
Theory Y
The higher-level needs of esteem and self-actualization are ongoing needs that, for most people, 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, Theory Y management makes the following 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 may initially need tighter controls that can be relaxed as the employee develops.
If Theory Y holds true, an organization can apply the following 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 need
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 self-evaluation increases engagement and dedication.

If properly implemented, such an environment can increase and continually fuel motivation as
employees work to satisfy their higher-level personal needs through their jobs.

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