NAME – AKASHDEEP SENGUPTA

ROLL No. – 0026

CLASS – BCom. LLB

CIA OTHER COMPONENT – FOUNDATION COURSE

1) Identify the leadership style of the division head from the angle of
Managerial Grid.

The leadership style of the division head is, Authority-Compliance Management

(9,1) as per the Managerial Grid. Here the leaders are more concerned about the
output/production and less concerned about the people. The style is based on
Theory X of McGregor. The employee’s needs are not taken care of and they
are simply a means to an end. Such a style can definitely increase the output of
the organization in short run but due to strict policies and procedures, high labor
turnover is inevitable.

Here, we can see that the new division head designed his employees work
environment on his own decision, without thinking whether the employees
could survive in them or not. He sets several new rules for the workers which
resembles a full-scale military operation like, there will be no informal
gathering during the office hours. It is also clearly mentioned that the
employees’ feelings are being considered as an afterthought, which shows a
typical trait of Authority-Compliance Management. And due to decreased level
of productivity, the supervisors have also been advised to “shape up their
subordinates” or they will be in grave danger, mentioned as “the axe will fall on
several heads”. Because of these strict rules and pressure to increase production,
the supervisory personnel and their subordinates showed signs of anger and
frustration. This are all the facts which clearly shows us that the new division
head follows the Authority-Compliance Management.

2) From the view point of Theory of X and Y, what assumption did the new
head make about the way in which people work most effectively?

The new head from the view point of Theory X and Y assumed that Theory X is
the way in which people work most effectively.

In 1960, Douglas McGregor formulated Theory X and Theory Y suggesting two

aspects of human behavior at work. One of which is negative, called as Theory
X and the other is positive, called as Theory Y.

Theory X is a negative view of people that assumes workers have little

ambitions, dislike work, want to avoid responsibility, and need to be closely
controlled to work effectively.

Whereas on the other hand, Theory Y is a positive view that assumes employees
enjoy work, seek out and accept responsibility, and exercise self-discipline.

These are how a manager who follows Theory X works –

a) Theory X managers tends to take a pessimistic view of their people, and

assume that they are naturally unmotivated and dislike work.

b) As a result, they think that team members need to be prompted, rewarded or

punished constantly to make sure that they complete their tasks.

c) Work in organizations that are managed like this can be repetitive, and people
are more often motivated with a “carrot and stick” approach.

d) Performance appraisals and remuneration are usually based on tangible

results, such as scales figures or product output, and are used to control staff and
“keep tabs” on them.
e) According to McGregor, organizations with a Theory X approach tends to
have several tiers of managers and supervisors to oversee and direct workers.

f) Authority is rarely delegated, and control remains firmly centralized.

Managers are more authoritarian and actively intervene to get things done.

Here, in the above-mentioned case, the new division head, based on the
assumptions, focused more on increased production than the concern of the
employees. He set a strong idea of the new working environment for the
workers. He set strong rules and measures for the workers, so that they can
work effectively. He cut off all sorts of informal gathering during the working
hours. The employees’ feelings were considered as an afterthought and the
changes in the work structure made them disappointed. Because of the
decreased productivity levels, the head ordered the supervisory personnel to
shape up their workers or else “the axe will fall on several heads”. As a result,
the workers got more frustrated and anger were clearly found on their face.
Their work performance got decreased and they themselves decided to meet and
discuss the situation. Hence, we can see a complete negative impact on the
employees and the supervisory personnel regarding their willing to work and
their work performance. This clearly shows that the new division head follows
the Theory X.