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Theory X and Theory Y
You are probably wondering why the first section in your organizational behavior text is focused on management theory. Like most modern-day theories and ideologies, organizational behavior has evolved over time as people adapt to changes in society. In order to understand organizational behavior, we must first understand management theory and how the people before us used these theories to guide and direct formal organizations to be more successful.
It is important to remember that organizational behavior has developed from management theory into a distinct field of its own. So what is management theory? Theories help us understand our experiences by using research and observable facts. Management is the act of supervising and directing people, tasks, and things .
So, simply put, management theory is a collection of understandings and findings that help managers best support their teams and goals. Management theories help organizations to focus, communicate, and evolve. Using management theory in the workplace allows leadership to focus on their main goals.
When a management style or theory is implemented, it automatically streamlines the top priorities for the organization. Management theory also allows us to better communicate with people we work with which in turn allows us to work more efficiently.
By understanding management theory, basic assumptions about management styles and goals can be assumed and can save time during daily interactions and meetings within an organization.
Theories can only reach so far, and management theories are no exception. There is no such thing as a one-size-fits-all management theory. What may work for one organization may not be relevant for another. Therefore, when one theory does not fit a particular situation, it is important to explore the option of developing a new theory that would lead in a new, more applicable direction. While some theories can stand the test of time, other theories may grow to be irrelevant and new theories will develop in their place.
While the next section will get into the nitty-gritty behind the history of different types of management theory, it is important to have a basic understanding as to why management theory was such an important and ground-breaking idea.
The industrial revolution is at the center of management theory. From the late s through the early s, the industrial revolution brought extraordinary change to the workplace and forever transformed the way companies operate.
The industrial revolution brought better and faster technology allowing companies to perform more efficiently than ever before and gave them the ability to dramatically increase their output. However, increased output meant lower prices which increased demand which in turn required more employees.
Companies that once had a couple dozen employees were now growing into gigantic corporations. No longer was it possible for a manager to know each and every one of their employees on a friendly level. In order to meet demand, company leadership had to ensure their employees were productive.
Sounds simple, right? Not exactly. While productivity goals can be set easily, managing a team to meet productivity goals was not so simple. For the first time, managers had to find new and innovative ways to motivate a sizable number of employees to perform.
Since this was a new concept, research, observations, experiments, and trial and error were all used to find new and better ways to manage employees. In addition, many management theories have developed since the end of the industrial revolution as society continues to evolve.
Each management theory plays a role in modern management theory and how it is implemented. During the Industrial Revolution, it became obvious that the ways companies operated their businesses had to drastically change.
While many people were in agreement that change was inevitable, pioneers in management theory differed in how they believed things should change and operate. In this page, we are going to explore six different management theories, all of which helped to form the base of management as it is known today.
Keep in mind as you read about each one, that while some parts of the theories may be common sense to us today, at the time they were developed, they were groundbreaking. While the industrial revolution sparked these new theories, even more innovation came in the decades that followed as companies changed to adapt to business needs. At its core, scientific management theory believes that it is vital to find the most effective way to complete each and every task, no matter how small.
In the early s, managers would give orders to their workers with no guidance on how to accomplish them. Managers and employees rarely, if ever, had interaction with one another. Taylor believed this was an inefficient way to operate a business and recommended some key changes. Taylor argued each task should be completed as efficiently as possible. In addition, everyone should be assigned a particular job based on their skills and abilities and must be evaluated based on the quantity and quality of their work.
Taylor did not think it was fair or cost effective to pay every employee the same amount, regardless of their output. While this may sound like common sense today, this was a groundbreaking idea in the early s.
Another big component of scientific management theory is the idea of training and development. Taylor argued it was extremely important to monitor and train your employees on the tasks they are assigned to. By ensuring your employees are efficient at their work, the output will be larger and of a higher quality.
One part of the scientific management theory that is not common today is the idea that managers strictly manage and employees simply work. Nowadays, most companies offer room for growth and advancement for their employees as opposed to keeping a distinct barrier between management and employees.
This theory had a huge impact on the way companies operated and were able to create a more balanced pay system, better training, and a more efficient workforce.
Administrative management theory was developed by Henri Fayol in the early s and is considered to be highly relevant even today. Fayol created fourteen principles which he believed outlined the basis for strong and successful companies. Fayol believed that organizational structure was vital to the success and productivity of a company.
The word bureaucracy tends to give off a negative vibe, implying that a bureaucratic organization is an impersonal machine that focuses more on numbers and output than on the wellbeing of its employees. However, its intended meaning is quite different. At the end of the 19th century, Max Weber created the bureaucratic management theory. While this included developing a hierarchy of command within the company, it also included supporting and developing employees.
Like Taylor, Weber believed efficiency in completing tasks was a key component to success and recommended detailed record keeping at all levels to monitor efficiency as well as areas of opportunity.
He agreed that all employees need to have clear job expectations and each job should be standardized to allow for maximum productivity. The greatest difference between the scientific theory and the bureaucratic theory is that Weber believed in the importance of human emotion.
Emotion in business? This was absolutely unheard of during the industrial revolution. However, Weber believed the two words were closely associated. Too much change can be harmful to company morale and create long lasting negative effects on company success. In addition, Weber argued it was extremely important to hire based on skill and, just as importantly, personality.
For example, the term management is often replaced with leadership. The argument for this is that management is a mundane and structured task while leadership is a unique and heroic act. With this thought process, managers are viewed in a negative light while leaders are appreciated and recognized. Now that you have read about three management theories, do any of them seem familiar?
Maybe you have experienced certain aspects of each of these theories first hand. During an interview process, onboarding process, or the day-to-day work environment, some parts of these theories are still active today. As the title implies, Human Relations Management Theory is centered around human interactions and relationships. Elton Mayo believed that all early management theories only focused on how money affects employee performance. He believed there were more factors that influenced how employees behaved and performed at work.
The initial goal of the study was to determine how changing the lighting would or would not affect employee productivity. They began the study with a small group of employees who they interacted with throughout the process.
The study found that regardless of how they changed the lighting, productivity increased. When they were unable to make a connection as to why productivity improved, they began branching out to other departments to see if the results were similar. They realized that the lighting changes did not affect productivity but instead the daily interactions with the employees throughout the process motivated them to work more efficiently and increase their output.
They allowed employees to voice their opinions, frustrations, and successes which in turn helped the employees feel more valuable. In addition, since they knew they were being monitored, they were more motivated to perform on a higher level. This was a revolutionary discovery that put the spotlight on human relations and highlighted the importance of individual and group dynamics.
Keep reading to see if you can connect the dots. Ludwig von Bertalanffy believed that your body is the sum of all parts. For example, your nervous system works together with your digestive system, which work with each organ and muscle group to allow a person to function.
If one function of the body fails to work, the body as a whole cannot effectively operate. Humans are most healthy and functional when all aspects of their being are working together effectively. He also argued that the environment can have an effect on each of the parts.
A broken leg can prevent you from walking or the flu can have you bedridden for days. Each of these issues can damage the overall productivity of a person. His work shows that external factors can prove to be toxic to an environment.
Although he was referring to the human body, the same can be said for the workplace. Negativity and other toxic outlooks can have a harmful effect on motivation and performance at all levels in an organization.
The first category known as Theory X explains that managers have a negative view of their employees and believe that employees need to be forced or coaxed into working. Theory X Managers tend to micromanage with the belief that employees will not motivate themselves to complete their work. This theory can be linked back to the scientific management theory and its focus on output above employee development and input.
On the opposite side of the spectrum, Theory Y Managers believe that employees are inherently motivated to work.
Theories of motivation
However, at the core of the theory is the cognitive process of how an individual processes the different motivational elements. This is done before making the ultimate choice. The outcome is not the sole determining factor in making the decision of how to behave. Expectancy theory is about the mental processes regarding choice , or choosing. It explains the processes that an individual undergoes to make choices. In the study of organizational behavior , expectancy theory is a motivation theory first proposed by Victor Vroom of the Yale School of Management. Victor H.
THEORIES OF MOTIVATION
Theory X and Theory Y are theories of human work motivation and management. The two theories proposed by McGregor describe contrasting models of workforce motivation applied by managers in human resource management , organizational behavior , organizational communication and organizational development. Theory X explains the importance of heightened supervision, external rewards, and penalties, while Theory Y highlights the motivating role of job satisfaction and encourages workers to approach tasks without direct supervision. Management use of Theory X and Theory Y can affect employee motivation and productivity in different ways, and managers may choose to implement strategies from both theories into their practices. McGregor also believed that self-actualization was the highest level of reward for employees.
Motivation is a state-of-mind, filled with energy and enthusiasm, which drives a person to work in a certain way to achieve desired goals. Motivation is a force which pushes a person to work with high level of commitment and focus even if things are against him. Motivation translates into a certain kind of human behaviour.
Some of the most important theories of motivation are as follows: 1. From the very beginning, when the human organisations were established, various thinkers have tried to find out the answer to what motivates people to work. Different approaches applied by them have resulted in a number of theories concerning motivation. Drawing chiefly on his clinical experience, he classified all human needs into a hierarchical manner from the lower to the higher order. In essence, he believed that once a given level of need is satisfied, it no longer serves to motivate man. Then, the next higher level of need has to be activated in order to motivate the man.