Business management in the present times has become complex as compared to the early years. Market competition continues to exert pressure on managers to do their best in providing goods and services. Employees form a vital part in a business organization because their dedication and motivation leads to an improvement in organizational performance. Managers have formulated policies to enhance workers productivity through research.
McGregor’s theory x and y are managerial theories that explain certain worker behaviors in business institutions. These theories help managers deal with certain types of workers with regards to the best interest. The thesis of my paper is to focus on theory y of McGregor’s theories and its success in business management.
According to McGregor’s theories, workers are described in two ways. First, theory x describes workers as lazy and they lack motivation. On the other hand, theory y describes workers as creative, self motivated and ambitious. However, in my essay I will focus on theory y. Theory y asserts that most workers posses a psychological urge to work. McGregor insists that if these workers are given the right working environment, such as job security and financial rewards, they will improve their work motivation.
Theory y is a participative leadership style that has the following basic assumptions. Workers show self direction and self control in achieving the company’s objectives and goals without punishment threats and external control. Workers show commitment to objectives as a result of rewards attached to their job attainment. In addition, the theory reiterates that employees crave for responsibility and their motivation to work is high. In addition, worker’s creativity, imagination and ingenuity are highly regarded among workers.
Theory y mostly applies to skillful professions such as specialists and engineers. An evaluation of theory y according to Peter Drucker’s hierarchy of needs reveals that, most of the workers in theory y strain for success, accountability and class (Mackenzie, 76). A majority of workers who are guided by theory y appear motivated by achieving self-actualization in terms of personal growth and personal realization. Conversely, some employees do not accord value on responsibility and achievement. For such workers, theory y would not be the ideal managerial strategy.
According to Herzberg, some provisions such as superior working conditions, good labor relations, job security, benefits and wages may not motivate workers but rather satisfy them. He argues that there are motivators and satisfiers. Workers mostly take satisfiers for granted. Motivators include; recognition, promotions, responsibility, and an interesting job. Unmotivated workers perform poorly. Therefore, it is essential for managers to come up with ways to motivate workers (Mackenzie, 53).
According to McGregor’s theory y, worker motivation is a key strategy to achieve business success. Some workers may find themselves in boring working conditions where procedures are repetitive. As a good manager, one needs to employ proper motivational measures (Schermerhorn, 97). For instance, job rotation and team work may help boost the levels of motivation amongst employees. Hence, offering an excellent job reputation for an organization may also help boost workers performance with respect to theory y. Some companies have created a good job reputation by ranking themselves as the best. The reputation creates a professional working environment where workers feel proud to be part of the company.
Theory y explains the essence of participative style of leadership. This involves equipping employees with more responsibility and encouraging their creativity. For instance, in some supermarkets, workers who fill shelves are encouraged to come up with better ways to stock the m, as a group. This boosts teamwork and it also motivates workers to express their creativity. Another example of the success of theory y is the Proctor & Gamble Augusta plant. The detergent plant had a different managerial structure. It had no hierarchical structure and the company focused more on employee motivation. The organization adopted personality motivating teams using McGregor’s theory y. surprisingly, within a short time the company grew substantially than all the other Proctor & Gamble companies (Schermerhorn, 42).
The current business world is highly dynamic due to frequent economic distortions. Some companies regard labor as a cost. Therefore, they struggle to ensure regulation in costs associated with labor. Conversely, labor is inseparable from the aspect individual motivation. As a result, in guaranteeing improved labor efficiency, incentives and other motivational measures have to come into play. Theory y focuses on directing workers skills and energy towards establishment of the organization’s goals and objectives. It is more knowledgeable to view workers as human assets rather than labor costs (Gitman & Carl, 40). Companies that value their workers work well than those which treat workers as mere laborers.
Consequently, the business sector has transformed widely from the simple industrial era to a competitive work organization. This has led to many changes in how companies are managed. The current business sector is a knowledge – based structure where organizations are required to utilize inputs efficiently so as to maximize outputs. Productivity relies majorly on workers contribution. This simulates the potential of theory y in improving productivity and quality of labor.
The effect of worker motivation is widely felt in any organization. Participative leadership with respect to theory y has had its fair share of success. The success of theory y left many companies that used theory x stunned. Most companies have appreciated McGregor’s theory y aspects of participative leadership. The business sector is a dynamic sector and managers should engage in consistent researches over managerial techniques (Schermerhorn, 12). However, some critics argue that this style of leadership has its flaws too. For instance, it may fail where workers have low self realization. These are workers who require guidance and they cannot work well independently. However, theory z is actively incorporated in such organizational situations.
Theory z comprises aspects of theory y and other theories which are all merged to form the theory. The theory is therefore, a combination of diverse management theories. Consequently, it is a hybrid style of management. It basically speaks of a culture in the organization, where there is a hierarchical managerial arrangement. This theory is also made up of employee participation and it advocates for consistent training of employees. The theory puts emphasis on employee’s motivation issues such as broadening of skills, job rotation and generalization of employee’s skills. Hence, this theory develops a friendly and co operative working environment among workers and the company. There is a strong relationship between the workers and the company they work for (Hindle, 34).
External economical factors trigger managerial changes. Just like how theory y preference rose over theory x during the industrial revolution, theory z has grown its potential over the other theories of motivation. This is caused by the emergence of fresh external factors such as technology. This has made it essential for managers to come up with ways to improve business management. Theory z comprises the core aspects of theory y such as worker motivation, together with other principles such as worker training (Hindle, 41). Workers training and diversity in roles has paved way for technology. The improved technology has been helpful in enabling companies to grow globally. With the introduction of the internet and online markets, international marketing has become much easier. Theory z hierarchical structure ensures that businesses are well organized to fit into the technological market. This is evident by Japan’s dominancy in the current business economy. The system creates efficiency and room for expansion without neglecting worker motivation.
The system is more productive and better organized than the other theories. This system has enhanced participative management and job designs. I am looking forward to working as an executive in a world renowned company. I clearly recognize the level of competence required for the executive role especially in the current economy. The role of technology in the current economy is continuously increasing over the past few years. Therefore, technology is a key driver in economic success in today’s world. Nevertheless, labor unions have come out strongly to advocate for the rights of employees. Poor employee management has resulted to a number business failures and strong criticism from the people. Theory z does not only focus on the need for workers’ motivation but also on their contribution. The system improves employee’s job performance in the long term. This is through training and promotions. Furthermore, it considers participative leadership in making decisions and changes. Thus, using this theory in today’s economy, will lead to high business success in terms of productivity. It also reduces labor costs as workers are employed in long-term contracts. This creates a good worker- manager environment, which in turn leads to increased output and service quality.
Consequently, technology and ICT is improving over years. Therefore, it would be wiser to use this theory because it paves way for adjusting technology through workers training. Thus, it will help me adjust my leadership position over time with regards to economical adjustments. In addition, the success of Japanese companies in the current economy is enough evidence of the theory’s potential.
Theory z has its flaws as well. For instance, workers are limited to little time outside work. Most of their time revolves around work and there is less family and personal time (Gitman & Carl, 67). However, in my opinion, the theory’s flaws can be corrected in an informed manner. For example, employees can receive compensation through financial incentives and longer vacations. Proper managerial skills can be employed to compensate workers on the inconveniences brought about by their high participation in work. Even though the system has long working hours, workers are sure of job security, which is a distressing element in many organizations.
Theory z has improved the core aspects of theory y. This has created a more efficient managerial system where business growth is encouraged without ignoring workers participation. These theory ads on the positive aspects of theory y making them work effectively in the current economical scenario. Change is inevitable. Theory y might have been perfect during the past years but the current economical situation needs a stronger and more complex management strategy (Hindle, 89). There would be a better management theory in the future, but theory z creates room for adjustments.
Business management is dynamic in relationship to economic fluctuation. Thus, future economical occurrences may require further improvement of the system. Through proper change and research, managers can be able to choose the managerial system that suits their company best.
Works cited
Mackenzie, I. English for Business Studies: A Course for Business Studies and Economics Students. United Kingdom: Cambridge University Press, 2010. Print.
Schermerhorn, John. Management. Hoboken, N.J: Wiley, 2010. Print.
Gitman, Lawrence, and Carl, McDaniel. The Future of Business: The Essentials. Ohio: South-Western Cengage Learning, 2009. Print.
Hindle, Tim. Guides to Management Ideas and Gurus. London: Profile, 2008. Print.
