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The Human Side of Enterprise

Theory X Theory Y
A) By nature… NOT passive or resistant
A) Indolent, works as little as possible
to organizational needs
B) Lacks ambition, dislikes
responsibility, prefers to be led B) Effect of their experience in the
organization
C) Resistant to change, gullible
C) Already present in people:
Management Responsibility :
Motivation
Development potential
1) Organizing the elements of production
Capacity to assume responsibility
2) Directing , motivating, controlling, Readiness to direct behavior
modifying behavior of people
towards organizational goals
Activities of Persuaded
Rewarded
people must
Punished
Management Responsibility :
be directed
Controlled
Make it possible for people to recognize and
develop these human potential characteristics for
c) Without this ACTIVE themselves
intervention….passive…..resistant to change
Arrange organizational conditions and methods
of operation for people to achieve THEIR
own goals BEST by directing THEIR effort
towards organizational goals
……..S I L O…….

EM
Prodn R&T
MM
SILO THINKING….
*Inward Focus

*Hamper Effective Communication

*Hinders Collaboration

*Bad Decision Making Process

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