Theory X and Theory Y

The eminent psychologist Douglas McGregor has given his theory of motivation called Theory X and Theory Y. He first presented his theory in a classic article titled 'The Human Side of Enterprise'. He treated traditional approach to management as 'Theory X' and the professional approach to management as 'Theory Y'. His theory refers to two sets of employees based on the perception of human nature. Here, theory X and theory Y are two sets of assumptions about the nature of Managers.

Theory X 

Theory X led managers to refuse to relinquish control over work and to use harsh methods of behavior management. Theory X managers would favor the hierarchical chain of command, motivation through punishment or reward and supervision within narrow and rigid parameters.

•      Employees are considered to be lazy by default and dislike work.
•      Employees must be coerced, threatened to work.
•      They must be directed or controlled in order to meet the objectives
•      They dislike additional responsibility
•      They seek security above all else.

 Theory Y 

In contrast to the notions in Theory X that made negative, resistant and lazy assumptions about managers’ beliefs about their subordinates in the workplace, McGregor developed a management view that was in most ways in direct opposition. Theory Y suggests a contrary view. Work is a natural human behaviour and it is something they want do, for the most part. Theory Y holds that humans are problem solvers, innovative and creative and are self-motivated by self-actualization needs much more than by punishments or rewards. Managers believe and trust their employees and the environment created is an ‘us and them’ relationship, instead of a Theory X ‘us versus them’ view, where collegiality is not only possible, but also encouraged.

•    Employees are self-motivated and tend to seek responsibility

•    Organisation is easy to steer towards strategic goals because of acceptance from employees

•    People are creative and have the imagination to come up with breakthrough innovations

•    Work is natural and is distributed easily

•    Managers tend to have liberal control due to natural growth

Theory Z:

Theory Z deals with the way in which workers are perceived by managers, as well as how managers are perceived by workers; is created and developed by William Ouchi. Theory Z offers the notion of a hybrid management style which is a combination of a strict American management style and a strict Japanese management style this theory speaks of Ringi System of Management. This decision-making system is the collective decision-making process and is highly decentralized. Only after the consensus is reached the decision is taken. If the decision is successful, then the one who has advocated it gets the credit but interesting part is that in the event of unsuccessful decision-making, top management takes the responsibility for the failure. Theory Z emphasizes things such as job rotation, broadening of skills, generalization versus specialization, and the need for continuous training of workers.

Theory Z assumes that workers tend to want to build co-operative and intimate working relationships with those that they work for and with, as well as the people that work for them. Also, Theory Z workers have a high need to be supported by the company, and highly value a working environment in which such things as family, cultures and traditions, and social institutions are regarded as equally important as the work itself. These types of workers have a very well developed sense of order, discipline, and moral obligation to work hard, and a sense of cohesion with their fellow workers. Finally, Theory Z workers, it is assumed, can be trusted to do their jobs to their utmost ability, so long as management can be trusted to support them and look out for their well being.

Comparison of Management Theory:

Conclusion:

No theory is bad or good. If we take into consideration of Maslow’s hierarchy of needs, then it can be said that at the bottom of the pyramid, money is the main motivator for work. Theory X managers exploit this human behavior characteristics to maximize organizational profit. It is predominately seen in labour intensive work like steel plants in India. However as we go up in the pyramid, self-actualization is the main motivator. Theory Y managers tries to maximize organizational growth to promote self-esteem, confidence, achievement, respect of others, and respect by others.

Problem solving and decision making.

In this session we learnt the process of identifying root causes of problems, generating solutions to problems, establishing decision-making criteria, and using those criteria to select the best alternative solution to problems. We learnt to evaluate the benefits and risks of individual versus group decision-making approaches. Sir taught us how to apply the problem solving and decision making Processes to the work situations.  

Definition of a Problem: A problem exists when there is a gap between what you expect to happen and what actually happens.

• ·         Problems must be resolved for organizations to function properly.
• ·         Manager must be aware of current situations to recognize whether a problem exists.

Definition of Decision Making: Decision making is selecting a course of action from the available alternatives.Process of analyzing critical data to determine the best decision. We do not always select the best choice when faced with alternatives.

•  Need a rational, systematic, and effective approach for deciding on a course of action.
• Organization has limited resources (number of employees, time, money, etc.) and those limits require managers and supervisors to make choices.

PROBLEM-SOLVING MODEL

 The problem-solving model shown below represents another approach that manager can use to help them find solutions to problems and to make wise decisions. Within its three steps are numerous procedures that manger can use as guides to solve a problem.

 Step 1: Understanding the Problem

• Review the issue again.

• Write down what you know.

• Look for key phrases.

• Find the important information.

• Tell it in your own words.

• Tell what you are trying to find.

 Step 2: Selecting Strategies  

• Make a model — involve the senses.

• Make an organized list or table.

• Look for a pattern — find relationships.

• Guess (or conjecture) and test.

• Make an organized drawing or sketch.

• Work backwards — start with the consequence.

• Role-play — become an active player.

• Solve a simpler matter — try simulations.

• Use estimation.

Step 3: Looking Back: Checking the Answer

• Does the answer make sense?

• Is it reasonable?

• Can the issue be generalized?

• Is there a pattern?

• Are there other similar situations?

Four steps in the Problem Solving - Decision Making process:

1: Situation Analysis. We need to do some valuing and we need to set priorities of what is urgent and what is important.

 2: Problem Analysis. This first needs information gathering from various sources both internal and external. Then we need to properly DEFINE the problem at hand.

 3: Solution Analysis.  First we need to GET IDEAS. This can be from brain storming sessions. Then we need to MAKE A DECISION. By nature, both these are contradictory. IDEA GETTING is an expanding or selection process while the DECISION MAKING process is a contracting or eliminating process. Usually we use the Dialectical Method to reach a decision.

4: Implementation. This is extremely important. Without this then all the decision making is an utter waste of time. We need to get others involved as they are also stakeholders and we need to make a proper plan for implementation.

The Dream is now a Reality!!

Sustainable societies are more important than sustainable construction.

Sustainable humans can provide for themselves, stand on their own two feet.

But there are many people today who live in extreme poverty, with no opportunity to lead sustainable lives. These people we must help first. At the start of the millennium a goal was set to halve the number of poverty-stricken people by 2015. A great effort is required if we want to achieve a sustainable world.                                            

- Muhammad Yunus   

     Muhammad Yunus is a great nonconformist personality who has been instrumental as a banker, economist and has received a Noble peace prize.

A brief introduction of Dr. Muhammad Yunus:-

-           Muhammad Yunus is a Bangladeshi banker, economist and Nobel Peace Prize recipient.

-           Muhammad Yunus was born in 28th June, 1940 in the village of Bathua, in Hathazari,         Chittagong, the business centre of what was then Eastern Bengal.

-            Inspired by his mother to help the poor, he committed himself to eradicating poverty.

-            Professor Yunus studied in Dhaka University and later received a Ph.D. economics from    Vanderbilt in 1969 and became an assistant professor at Middle Tennessee University the    following  year.

-           He served as an instrumental member in International Advisory Group for the Fourth World  Conference on Women, Global Commission of Women's Health, the Advisory Council for Sustainable Economic Development and the UN Expert Group on Women and Finance.

-          He came up with the concept of micro-credit and micro – finance.

-          In 2006 Yunus and Grameen Bank received the Nobel Peace Prize "for their efforts through  microcredit.

The four pillar on which Grameen bank is established:

Conventional Banks	Grameen Banks
Cater to rich –“more you have, more you get”	Cater to poor with a little or no money
More than 99% of the borrowers are men	97% of the borrowers are women out of a total 8 million borrowers
Collateral is needed by talking loans	Collateral is not needed
Rich own the banks	Borrowers are the owners of the bank

• The sole aim behind the  foundation of Graameen Bank is to 'give to the poor, uneducated, women of Bangladesh

• The simple belief that anyone can do the thing when the opportunity is given and this belief paid off well hen children who were given small education loans to finish primary education began entering World -class universities. 

• The function of Grameen Bank is very Unorthodox compared to conventional bank and that is one of the reason of its success

Genesis of  Grameen Bank:-

The origin of Grameen Bank can be traced back to 1976 when Professor Muhammad Yunus, Head of the Rural Economics Program at the University  of Chittagong, launched an action research project to examine the possibility of designing a credit delivery system to provide banking services targeted at the rural poor.

Objectives of Grameen Bank:-

-          The Grameen Bank Project (Grameen means "rural" or "village" in Bangla language) came into operation with the following objectives:

-          Extend banking facilities to poor men and women;

-          Eliminate the exploitation of the poor by money lenders;

-          Create opportunities for self-employment for the vast multitude of unemployed people in rural Bangladesh;

-          Bring the disadvantaged, mostly the women from the poorest households, within the fold of an organizational format which they can understand and manage by themselves;

-          To reverse the age-old vicious circle of "low income, low saving & low investment", into virtuous circle of "low income, injection of credit, investment, more income, more s avings, more investment, more income".

Achievements of Grameen Bank:-

The United Nations has declared 2005 the “International Year of Microcredit.” This counts as an achievement for Muhammad Yunus. With his Grameen Bank in Bangladesh, the economics professor spurns social, political, and economic prejudice and shows how to help the poorest of the poor: by lending them a few dollars and requiring them to pay back their microcredit. Yunus’ concept has been copied in over a hundred countries, producing lasting improvement around the world. At the Holcim Forum, Muhammad Yunus impressed the international audience with his lively lecture and with his charisma. As a member of the Advisory Board, Yunus will help shape the future of the Holcim Foundation for Sustainable Construction – and help shape the definition of sustainable construction.

Muhammad Yunus spoke plain English at the Holcim Forum: “People are not poor because they are stupid or lazy. People are poor because they have no financial structures to help them! Poverty is a structural problem, not a personal problem.”

Working of Grameen Bank:-

The mode of operation of Grameen Bank is as follows:-

 A bank branch is set up with a branch manager and a number of center managers and covers an area of about 15 to 22 villages. The manager and the workers start by visiting villages to familiarize themselves with the local milieu in which they will be operating and identify the prospective clientele, as well as explain the purpose, the functions, and the mode of operation of the bank to the local population. Groups of five prospective borrowers are formed; in the first stage, only two of them are eligible for, and receive, a loan. The group is observed for a month to see if the members are conforming to the rules of the bank. Only if the first two borrowers begin to repay the principal plus interest over a period of six weeks, do the other members of the group become eligible themselves for a loan. Because of these restrictions, there is substantial group pressure to keep individual records clear. In this sense, the collective responsibility of the group serves as the collateral on the loan.

Highlights of the operation:-

Of the total equity of the bank, 94 % is owned by borrowers and 6 % by Government of Bangladesh. It has more than 8 million borrowers of which 97 % are women. The bank has a loan recovery rate of 96.67 %.

 Grameen Bank is a reality which was dreamt by this great personality, the dream to eradicate poverty, the dream to provide opportunities, the dream of their development and above all the dream to make their dreams come true.

“One day our grandchildren will go to museums to see what poverty was like.”

-Muhammad Yunus

Valley Crossing Exercise

Valley Crossing Exercise – Yet another exercise to understand management concepts!

 Famous Quotes:

Talent win games, but teamwork and intelligence win championships

                                                                                             – Michael Jordan

If everyone is moving forward together, then success takes care of itself

                                                                                               - Henry Ford

“Valley Crossing Exercise” is a very useful management exercise to understand the importance of teamwork. Teamwork is a mixture of action process, interpersonal process and transition period in between. Teamwork consists of leadership, team formation, team norms, outcome interdependence, competition and cooperation.

The following image clearly depicts why teamwork is so much useful and what it can lead to:

“Together Everyone Achieves More.”

As can be seen in the above image, when the multiple people work as part of a team, the overall output obtained is much higher than the one obtained by working individually.

Explanation of valley crossing exercise through a picture is as below:

Understanding from the exercise:

·              Three people who are one side of a valley have to cross the valley using a rod. The gap between the valleys is more than one step long but less than two steps. At any time, all the three people have to hold the rod and using synchronous movements, cross the valley.

·              Any person, while on top of the valley (the “risky” position to be in) will be supported by other two people. All the three members here have interchanging roles in the completion of task. As can be noticed in the above image, all the three members have equal distribution of risky, half-risky and safe situations.

·              Success of this exercise will depend upon how closely the three people work as part of a team, coordinate and communicate with each other through sound/signals and follow a synchronous movement.

Problem in hand

There are three people trying to cross a valley. The gap of the valley is in the range of one foot to two feet. Assume that each of them has the same footstep. They have a rod of a convenient size and they have to cross the valley using the rod as a support. Direct jumping is considered fatal assuming the valley is fathomless.

Solution:

The following are the steps to be followed sequentially to complete the task.

·              Initially, the first person puts his leg forward and hid first foot remains in air and so he is only half safe. The remaining are fully safe.

·              The next step, the first person is totally unsafe and he has hang from the rod, which is being supported by the other two with their weight.

·              The next step, the first person puts its first foot on the other side of the valley and hence half safe again. The second person now puts his first foot in air and hence even he is half safe.

·              At the end of next step, the first person totally reaches the other end of the valley and hence is totally safe again. The second person is totally unsafe hanging in the air with the support of the rod weighted by the first and third persons.

·              Next step, the second person puts his first step on the other side of the valley and the third person puts his first step in the air and hence both are half safe.

·              At the end of next step, the third person reaches the other end of the valley and hence totally safe again. The third person remains hanging in the air supported by the first two persons who have reached the other end of the valley. 

·             After two more steps, even the third person reaches the other end of the valley and the mission has been accomplished

At one point of time each one of them will be in different situation either safe, half safe and fully unsafe. There come nine steps which they have to follow to cross the valley.  

Here is the diagram that shows  the nine steps required to complete this exercise:

Management lessons learnt from this exercise:

1.   Responsibility:

      Everyone in an organization should feel equally responsible to achieve the objectives of the organization. Task can only be completed successfully if everyone in the team works collectively and in a responsible way.

2.   Planning:

Proper planning is required to be done for initiating any task so that the task is completed on time. In the valley crossing exercise, the plan was already formulated by the team members in the way they would cross the valley (take 9 steps with alternate and synchronous movement of left and right leg). The plan should be focused on how we can leverage our strength as a team.

3.   Communication:

     Effective communication is very much essential for the success of the team and the organization and as it has been proven in this exercise. Synchronous movements by communicating with each other through sounds/skills were very much essential for the success of this exercise.

4.   Shared vision:

      It is important to have a shared vision, which is clear and informs about where the organization wants to head in the future. Vision needs to be shared with all the members of the organization so as to enable the members to work collectively in achieving the organization’s defined goal.

5.   Trust:

      Organizations cannot be successful if there is no element of trust in it. As in the case of valley exercise, a person was ready to cross the valley while being in a “risky” and “half-risky” state only because he/she trusted the other members in the team. Similarly, in an organization, managers and employees need to trust each other.

6.   Defined roles and responsibilities:

      Roles and responsibilities need to be clearly defined for each and every individual in an organization since then, they will be aware of the kind of work that is expected from them. Valley crossing exercise was successful since each member knew when to move their leg (either left or right) and that it should be in sync with the other members of the team.

7.   Coordinative relationship:

      Signifies the bond between the team members to allow them to seamlessly coordinate their work to achieve both efficiency and effectiveness.

8.   Interdependent Task:

      It is the extent to which a member of the team needs to interact with the other team members to complete the work. As in the valley crossing exercise, it was of utmost importance for a member to be interdependent on other members so as to mitigate the risk and complete the task in hand.

      Interdependent task becomes more crucial once we go higher up the corporate ladder. It becomes more important to work with the team, take their inputs and consider their expertise/skills/opinions.

9.   No scope for “social loafing”:

There is no scope for social loafing while working in a team. Everyone is expected to work to achieve the set objectives.

NAVARANG PUZZLE

Navarang cube is cube consisting of 27 identical cubes of different colors It can be divided based on the colors of different cubes. We get 9 different sets of colors comprising of three groups each. When this cube was brought in to our class we thought it was a shuffled rubiks cube. But when Mandi sir dissembled the cube we came to know that it is much more than a rubik's cube. They were held together by a special arrangement among the blocks.

We were posed a challenge to reassemble the cube in such a way that all the faces of cube comprises of all the 9 colours. We tried our best by trying most of the permutations on the cube. And finally no one could make. Because there is a systematic procedure for arranging these cubes. And when we solved it then we learn the most important management lessons from the Navarang cubes.

Management lessons from the Navarang cubes.

•  Two blocks of the same color may represent people in any organization, who don't gel well with each other. And hence while forming a team, a structured approach is necessary.

•  The key to solving any problem in organization. The first step is to segregate the similar elements of the problem together. Once you have done that, everything else falls into place, and it is simply a matter of applying simple logic at each level,and then each Problem can be solved by systematic thinking
•  When the cube is not placed at the right place the puzzle cannot be completed. In the same way when a right person is not placed in right position in any organization .then, it adversely affects the whole organization.

•  The organisation should have a mix of people with different skill sets like how a Navarang puzzle consists of different sets of colors , and people must arranged on their respective position as the cubes of Navarang puzzle to ensure a balance and effective structure of organization.                                                      
• Each Block represents an entity (Labor, Machine etc.) in an organization and is to be assembled in a structured and hierarchical way like the Navarang cube,so the  people in an organisation must work efficiently with their assigned work,so generate maximum efficiency .

Management lessons from the story of” Three monks and no water”.

Background

The film is based on the ancient Chinese proverb "One monk will shoulder two buckets of water; two monks will share the load, but add a third and no one will want to fetch water. The film does not contain any dialogues, allowing it to be watched by any culture, and a different music instrument was used to signify each monk. The film tells the story from the aspect of the MONKS.

Directed by	A Da
Written by	Pao Lei
Cinematography	You Yong
Release date(s)	1980

In this play, main aim is to show essence of TEAM WORK and PRODUCTIVITY, these are explained by theme of fetching water from down the hill to top of hill, where Monastery is situated. Film of 'Three Monks' can be seen below

Twists and turns of movie :

The problem is above videos are fetching water from down hill to monastery at top.there were three monks each with different type of mentality. This is beautiful example with which we get to know the importance of TEAM work.

 1 single monk is present and  it is easier to bring two buckets of water on a bamboo stick balanced on his shoulder. However, when another monk arrives to monastery, the first monk initially thinks he would be relieved of his duties. However, this is not meant to be and the two monks together decides to share the load and carry a single bucket of water between them by balancing the bucket at the centre of the stick. But while coming along with water problem has come. Because of difference in heights of 2 monks bucket was shuttling from one end to another end incessantly. But finally first monk took initiative and took out scale and measured and both of them fixed mid point and attached bucket to that point.

Another problem has come when a third monk comes to monastery. Initially, both the monks in the scene decided to let the third monk do fetch water single. He went down hill and brought water but he felt so thirsty that he started drinking water which he brought and then all of them fought for water and finally nothing left. Finally each monk took one bucket and they waited for rainfall so that they get water with out any hard work. But cloud passes and these 3 monks disappointed. 

Now all of a sudden, a rat is interested to eat candle. As it eats, bottom part of candle, top part falls down and fire spreads and in a minutes entire monastery catches fire. As the fire spreads, 3 monks became horrified and one of the monk took bucket and ran down hill to fetch water and 2nd monk also ran behind him to fetch water but with no bucket. As first monk was in hurry, while returning back by mistake 2nd monk was hanged onto bamboo stick and surprisingly first monk could not even make out and after reaching top hill, he almost threw 2nd monk as if it is with bucket with full of water. Finally, third monk realizes and stops in doing so. Here all realizes that they should work as team  and decided to work. Now bottom half of hill is covered by first monk and top half by 2nd monk and brought water is thrown on to monastery by 3rd monk. After some times, they finally made fire to put off. 

Now they became friends and understood the meaning of TEAM work .they had employed new innovative technique of fetching water by fixing pulley at edge of hill and using rope they brought water to monastery. one monk at pulley, other at down-hill and other takes water into monastery from pulley point.

Management Learning

1.DISCIPLINE

There is possibility that people forget their responsibilities if there is no proper management  (rules,regulations and system).

2.INNOVATION

These monks are smart enough to innovate new method of using a pulley to carry the water bucket up the hill rather than going down and fetching. With this method, they have innovated and excelled in the function of bringing water to the monastery by reducing their own physical effort. Hence innovation is best part of management learnings. A successful manager should be innovative to survive in this fast growing and competitive world. 

3.PRODUCTIVITY    (Out put / Input ):

By inventing new innovative method of fetching water, their productivity has gone up very high.

Now with same inputs, they produced higher output.

Single man more effort (less productivity)

Three man with specified work, less effort by individual , more out put (more productivity) .

3.SYNERGY

Synergy means, sum of whole is greater than parts. Here two monks going and getting one bucket is more efficient and gives more productivity. Proper synergy should be present between workers/employees in organization they works towards a common goal as shown in above fig. of three monks and it should lead to high productivity and highly efficient.

4. INITIATION AT CRISES TIMES

During problem between monk 1 and monk 2, monk 1 has took initiative to solve problem rather than sitting silently like monk 2. He took out scale and measured and fixed point of bamboo stick to fix bucket. Hence, being a good team player one has to put all his egos a side and step towards crises elimination.