Business issues and the context of HR

Management is the allocation of scarce resources against an organization 's objective, the setting of priorities, the design of work and the achievement of results. Most important, it 's about controlling.

Theory X & Y was officially expounded (and named) by Douglas McGregor, a social psychologist at MIT in the 1960s. His idea was that there are two fundamentally different styles of management. Theory X is an authoritarian concept where one assumes that individuals work reluctantly, without motivation. On the other hand, Theory Y is a libertarian concept where one assumes that people will perform beyond their duties if they are motivated and are dedicated to the overall goals set forth for them.

It is depicted that modern organizations tend to incorporate the aspects of the open systems with those of the natural and rational perspectives. Examples include the institutional, transaction cost, and the contingency and the contingency theories. Organizations adopt the open system that accommodates the other two theoretical perspectives for it to exist (Davis & Scott, 2006). These organizations tend to have structures that are based on the processes, the products, and the function.

Theory Y is a theory that says humans are natural good and that they are hard workers and tries their best. (Schriver, 402) This theory fits because 7 Hills believe in people no mater where their lives have taken them. 7 Hills has a mission to help these people get back on their feet, they believe with the right about of support any one can get back up.

A leaked report, obtained by the Labour Party and compiled by the Association of Chief Executives of Voluntary Organisations (Acevo) has claimed that the charity sector is facing local and national government funding cuts of between £1bn and £5.5bn in the current financial year.

LO3: Understand the role of HR in the managing of contemporary business issues and external contents.

Theory Y was created by McGregor because he believed that its assumptions would lead to a more effective style of management. McGregor stated that peoples work effort was as

On the other hand, here comes to the theory Y. On the contrary, it based on positive assumptions, and also more positive view of workers and the possibilities that create. For instance, they assumed that employees are ambitious, self-motivated and anxious to accept greater responsibility. Employees exercise self-control, self-direction, autonomy and empowerment, also exercise creativity and become forward looking. So, once the managers are adopted this theory, they believes that people want to do well at work, have a pool of unused creativity and that the satisfaction of doing a job

According to Kreitner and Kinicki (2013) McGregor contrasted two views on human nature by insisting that Theory Y assumes that people are more positive at work, and believed managers could accomplish more by viewing employees as such (p.9). The other outdated theory, is Theory X, which is a more negative and pessimistic assumption about workers.

Douglas McGregor was a management professor at the MIT Sloan School of Management. He introduced a new motivational theory in his book ‘The Human Side of Enterprise’, stating that all workers were divided into two groups: Theory X and Theory Y. Theory X workers were lazy, irrational and unreliable, and were only motivated by money and threatened by punishment. Theory Y workers were able to seek and accept responsibilities and fulfil any goals given.

Theory X describes a results-driven manager who issues deadlines and ultimatums, is elitist, does not build teams, is a one-way communicator and a poor listener, and a whole host of other negative traits. This is the "authoritarian" style, and while MacGregor's (Chapman, n.d.) treatment of this manager is overwhelmingly negative, these types of people often become managers because they deliver results. Theory Y managers, by contrast, as known as "participative" and are characterized by a host of positive adjectives.

organization (a group of one or more people or entities) or efforts for the purpose of

10. McGregor’s Theory X and Theory Y • Taught psychology at MIT. • At Antioch College, McGregor found that his classroom teaching of human relations did not always work in practice. • From these experiences, his ideas evolve and lead him to recognize the influence of assumptions we make about people and our managerial style. Content Theories of Motivation McGregor‟s Theory X and Theory Y – Theory X • Assumes that workers have little ambition, dislike work, avoid responsibility, and require close supervision. – Theory Y • Assumes that workers can exercise self- direction, desire responsibility, and like to work. – Motivation is maximized by participative decision making, interesting jobs, and good group relations.

The X-Y theory is included in organization behavior. "Organizational behavior studies and identifies management activities that promote employee effectiveness through an understanding of the complex nature of individual, group, and organizational process." (Bateman, Snell). The X-Y theory says that there are two types of managers differentiating in management style. Theory X says the average employee dislikes working and if at all possible, would avoid working. Because of their nonexistent desire to work, management must apply force with threats of punishment to enable the employee to work towards organizational goals. Management must continually observe the worker to ensure they are doing as they are told. Theory Y says that people will willingly apply themselves in their work. They will apply self control and

Theory X assumes employees are inherently lazy and will avoid work if they can and that they inherently dislike work. As a result of this, management believes that workers need to be