The Human Side Of Enterprise

Employee motivation is, or at least must be, one of the key issues for directors, managers and personnel managers. The leader must be able to find the sensitive strings of his subordinates, which can be motivated by influencing them to achieve high performance. The correct use of motivation encourages staff to make more efficient use of their knowledge, skills, and talents. In today's turbulent, often chaotic environment, commercial success depends on the employee's talent and effort. Despite the many existing theories and practices, some of the motivation of leaders today remains a mystical term. This is partly due to the fact that people are motivated by different things and techniques.

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.

Another problem with this management approach is that it acts as hindrance to the development of new products. The ramifications of taking this McGregor 's Theory x approach, neglects non economic factors such as performance appraisal and participation which are considered as key motivators. Moreover, Maslow 's theory supports the argument that autonomy and room for personal growth are the key motivators for employees to add value to their company through the process of satisfying their own need for self actualization.

Theory Y plays a big role at Whole Foods. Theory Y is a positive set of assumptions about people being responsible and creative (Kreitner & Kinicki, 2013). Manager could get more out of individuals by viewing them as self-energized positive people. Under theory Y, people enjoy working, they are self-motivated, committed to the organization, and are responsible human beings (Lawter, Kopelman & Prottas, 2015). Managers assume that individuals are capable of self-direction and they volunteer for additional responsibility. Managers that are consistent with Theory Y behaviors get higher performance out of employees and believe in empowering employees. When given the opportunity, managers with the theory Y principle feels people are creative and

Theory Y, adopts the participative management style, which operates on the idea that people are inherently motivated to work if they find the job fulfilling

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

Blanchard illustrates this when Jim Barnes implicitly threatens Wes Kingsley’s job because Wes is being too ‘soft.’ Jim assumes that since Wes, like every worker, lacks motivation and wants to do as little as possible while still collecting a pay check, it is his responsibility to provide a direct reward or punishment in order to ensure Wes’s performance. This contrasts sharply with the style Wes learns from Shamu and the Seaworld team, who believe that trust between whale and trainer (in Wes’s case, manager and employee) is most important. This falls in line with Theory Y management in its belief that under proper, caring (WRONG WORD) management, workers can be self-motivated and flourish. Similar to how Dave Yardley believes Shamu inherently enjoys performing (when treated well), Theory Y/Whale Done managers trust that their workers want to succeed and welcome responsibility above the bare minimum. The managers believe that it is just as much in their employees nature to work and complete tasks as it is to rest or play. Both Blanchard and MacGregor illustrate that Theory Y/Whale Done management is clearly best not only for employee morale, but also productivity. When a manager trusts his or her employees to excel and an

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

Motivation according to Kelley (2014) is the ‘process through which managers build the desire to be productive and effective in their employees’. If an employee is motivated, they are more likely to be productive and generally staff turnover is low. The problem of worker motivation is that workers are not seen as humans, they have a lack of freedom at the workplace and lack of job fulfilment. Taylor and McGregor Theory X argue that there is not a problem with worker motivation, workers will be obedient because of fear of losing their job motivates them to do well. Whereas Maslow and McGregor’s Theory Y argues that there is a problem with worker motivation because of class conflict between the worker and the manager. The

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.

that employees remain motivated if they are rewarded to achieve goals of a company. And when they are

Motivation in the workplace is one of the major concerns that managers face when trying to encourage their employees to work harder and do what is expected of them on a day-to-day basis. According to Organizational Behavior by John R. Schermerhorn, James G. Hunt and Richard N. Osborn the definition of motivation is "the individual forces that account for the direction, level, and persistence of a person's effort expended at work." They go on to say that "motivation is a key concern in firms across the globe." Through the years there have been several theories as to what motivates employees to do their best at work. In order to better understand these theories we will apply them to a fictitious organization that has the following

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.

Keeping employees motivated in addition to creating incentives and/or additional ways for employees to receive more compensation will create better performance overall within an organization. Contrary if company B gives their employees incentives to perform, without any motivational tactics they probably will not have as many top performances as company A, in addition the company may only seek short term rewards verses have long term success. Lack of motivation for employees within an organization, can cause long term damage for the company’s success. Different things motivate everyone; therefore there should be a system in place to keep employees motivated for the long term success of the company. In the MBM textbook under the concept of incentives, compensation, and motivation, there are a couple of different views of how it should be applied within an organization. We will discuss The Social Role of Profit, Personal Profit and Losses, and the way Market-Based Management view how incentives, compensation, and motivation should be applied and the things that effectively drive employees’ actions while at work.

As Douglas McGregor began working on his book, The Human Side of Enterprise, he encountered Abraham Maslow’s theory. Maslow believed that people had 5 basic ascending needs. It was this theory that not only supported McGregor’s thinking about a hierarchy of motivation, but it also provided a strong theoretical foundation for his assumptions (Bobic, 2003). With a firm foundation McGregor shared his theory with the world, and his theory has had a lasting impact on management theory.