ASSIGNMENT:01

INTRODUTION OF THEORY X AND THEORY Y

Theory X and Theory Y were first explained by McGregor in his book, "The Human Side
of Enterprise," and they refer to two styles of Management .
1) Authoritarian (Theory X)
2) Participative (Theory Y).
THEORY X:-
If you believe that your team members dislike their work and have little motivation, then,
according to McGregor, you'll likely use an authoritarian style of management. This
approach is very "hands-on" and usually involves micromanaging people's work to
ensure that it gets done properly. McGregor called this Theory X.

Theory X management assumes the following:

1) Employees inherently dislike work and, whenever possible, will attempt to avoid
it.
2) Most workers place security above all other factors and will display little ambition.
3) Need to be supervised at every step.
4) People have a little ambition and are unwilling to take responsibility.

Application Of X Theory:
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:-

If you believe that your people take pride in their work and see it as a challenge, then
you'll more likely adopt a participative management style. Managers who use this
approach trust their people to take ownership of their work and do it effectively by
themselves. McGregor called this Theory Y.

Theory Y management assumes the following

1) Employees can view work as being as natural as rest or play.
2) Solve problems creatively and imaginatively.
3) View work as fulfilling and challenging.

Application of Theory Y:
Theory Y Style management is suited to knowledge work and professional services
Professional services organizations naturally evolve and its principles to encourage
knowledge sharing and continuous improvement.

Conclusion:
Theory Y seems more applicable in the banking industry rather than theory X according
to the respondents. Banking job is well structured and well-disciplined job that ensure
an environment suitable for the employees to show the assumptions of theory Y through
their performance and characteristics But managers are used to treat the employees
with the characteristics of theory X managers due to hyper competition among banks
and high target set out by the head office regarding deposit collection, loan
disbursement, and smooth recovery of loan under the pressure of Non-Performing
Loan.