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4

Accounting

4. What are theory X and theory Y? Give example of Theory X and Theory Y management styles.

5. What have been the important changes in the way theorists and many managers view members of organizations and the nature of Effective organization? ( Describe the transition from " closed system" perspectives to more "open,adaptive systems" perspectives)

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Theory X

This theory believes that employees are naturally unmotivated and dislike working, and this encourages an authoritarian style of management. According to this theory, management must firmly intervene to get things done. This style of management concludes that workers −

  • Disfavor working.

  • Abstain responsibility and the need to be directed.

  • Need to be controlled, forced, and warned to deliver what's needed.

  • Demand to be supervised at each and every step, with controls put in place.

  • Require to be attracted to produce results, else they have no ambition or incentive to work.

McGregor observed that X-type workers are in fact mostly in minority, and yet in mass organizations, such as large scale production environment, X Theory management may be needed and can be unavoidable.

Examples of theory x

Theory X presumes all employees are lazy and will shirk working if given a chance. Most managers subscribeto this idea. An example is the time clock. You have to clock in partly because the management   thinks you'll arrive late and leave early if you don't

Theory Y

This theory explains a participative style of management, that is, distributive in nature. It concludes that employees are happy to work, are self-motivated and creative, and enjoy working with greater responsibility. It estimates that workers −

  • Take responsibility willingly and are encouraged to fulfill the goals they are given.

  • Explore and accept responsibility and do not need much guidance.

  • Assume work as a natural part of life and solve work issues imaginatively.

In Y-type organizations, people at lower levels are engaged in decision making and have more responsibility.

Examples of theory y

Theory Y presumes that workers want to do a good job and will do a good job if you let them. • An example is an artist on contract to produce art. You tell the artist what you want done but you leave it to him/her when and how to do it as long as they produce what you want within your timeline. She can paint at 2AM for all you care - as long as you get art by the deadline.

Firstly we understand meaning of Organization:

Organisation is a set/group of people which work for the organisation towards achieving / accomplishing common goals.

Nature of effective organizations are as follows:

1. Organization is a process of arranging and ddefining the activities and also helps employees in achieving their goals.

2. organisation helps employees in accomplishing company's goal.

3. organisation helps in segregating duties and roles of employees as per their qualification that means right job to a right person.

4. organisation is having structural framework in which hierarchy is made and works are delegated by higher level to lower level.

Closed System means a system which is not interactive with environment and even they are not change as per change in environment. they will take input that is energy from environment but not give output to them. These systems work in isolation and after sometime obsolate.

open system means a system which is adaptive in nature and changes as per change in environment. They take input from environment and provide output to environment. Due to their adaptive nature they will survive in changing environment.

some points which we observe at the time of trasform from close to open.

1.closed syestem are resistance to change but when it comes to open system they easily adjust and react as per environment.

2. for benefit of organisation it should be positive when they transform from close to open for accomplishment of goals as well as survival of organisation.

3.Adaptive approach helps in collection of ideas like we can say Brain storming method, where all ideas are welcomed and choose those idea which is benefited to organization.

4. This can also helps in maximum or optimumutilisattion of resources like men , machine, money , material etc.