The Theory and Practice of Spin-Out Management Essay

Charles M. Carson, (2005),"A historical view of Douglas McGregor's Theory Y", Management Decision, Vol. 43 Iss 3 pp. 450 - 460

McGregor first published his ideas in his book, The Human Side of Enterprise. One of the experiences he had that influenced his thoughts was from work that he did at his grandfather’s establishment for temporary workers in Detroit. Because he was a close acquaintance of Abraham Maslow, who developed “Maslow’s Hierarchy of Needs,” McGregor wished to counter the scientific approach on management (“Douglas McGregor,” 2008) and named Theories X & Y.

They were unsure that DLJ could find new business lines to expand, in which would maintain its profits margins and growth rates. Anther problem addressed dealt with maintaining post-IPO profits.

Turnkey ventures are most regular in organizations that represent considerable authority in costly, complex generation innovations, for example, the "substance, pharmaceutical, oil refining, and metal refining businesses" (Hill, 2005, p. 488). There are preferences for these sorts of organizations, yet there are additionally chances.

The long-term strategies of a firm can be negatively affected if it is pursuing a diversification strategy. Rather than improving upon the factors that led to its competitive advantage, management focuses on running a diversified company, which could result in the company losing its core business advantage and severely hampering the future success of the firm. Opportunities in Going Public

When managing people, McGregor’s model, indicated below, shows to styles of management. Theory X is directive, whereas Theory Y is enabling, and looks at employee engagement/ teamwork in order to achieve the

The owner of Hansson Private Label (HPL) must determine whether or not to accept an aggressive expansion project that would preclude the company from pursuing any alternative investment opportunities for several years. The investment, if successful, would offer numerous benefits to the company, capturing greater market share, strengthening relationships with major customers, crowding out competition and increasing firm value. Nonetheless, the decision carries significant risks and could lead to a substantial decline in firm value, if not bankruptcy, should any number of variables prove unfavorable to HPL. Moreover, the project relies heavily on a contract with a single large

Each of the approaches for expansion – IPO, Acquisition, or Merger – also has weaknesses. An IPO can be expensive and may require 15-25% of the money raised to cover the costs of raising capital in this way. An IPO also requires a tremendous amount of reporting to meet the requirements of the SEC, both for the initial offering and for the future publicly traded company, which not only requires the time and effort of staff members but may also give valuable information to the company’s competitors. All this reporting then creates legal liability for errors and omissions in the prospectus, which adds a further layer of complication. In the end, the former owners lose some control over the business and must share future wealth with the new shareholders. Mergers

Theory X and Theory Y, developed by Douglas McGregor, grew out of opposition towards classical management methods. Classical management theorists, such as Fredrick Taylor, focused on scientific training and efficiency and did not account for personal and behavioral issues, such as management styles or job satisfaction. McGregor saw these deficiencies in the classical school of management which lead him to develop a theory of management that would factor the importance of the individual worker. If a manager could tap into the feelings and attitudes of their workers, then the manager would be able increase their employee’s motivation which would then increase production. McGregor’s theory viewed the employee as a person and not as a machine

This course for juniors and seniors explores firm strategies related to innovation and technological change. We focus on how the success of technological innovations—new products, processes, and services—depends on the firm’s business model. Other key topics include intellectual property rights and the management of technological uncertainty through organizational arrangements such as corporate venturing, spinoffs, and alliances.

“The Theory of evolution says continuous change is inevitable and if one does not evolve, they will perish” (Darwin's theory of evolution, 2006). This is true for businesses and companies. If companies do not evolve then their survival is in jeopardy. A key to survival is a core competency that the company has built over time. These competencies are what a company is built upon. Companies that are successful and continue to survive have shown that they focus on building core competency and in turn their ability to innovate increases. Based on their core competencies these companies have built products (line extension) or services (redirection) that can be applied to variety of applications. Successful companies are eager to build competencies that will help them become world leaders. They do not solely focus on products alone; they focus on System Thinking, how one piece affects the entire system (Dundon, 2002). This type of thinking shows a focus on core. A piece of the system is most likely

McGregor created two belief systems Theory X states that managers believe that subordinates need to be controlled if organizational goals are going to be met. These managers are most likely to uses reward and punishment to control employees. In contrast Theory Y managers believe employees are active and responsible, and they would be motivated to meet the goals without overbearing control form the organization (Landy & Corte, 2007). In the movie Intech's management was definitely managing the company by McGregor's Theory X. And Bills management skills made everyone feel small and controlled, the employees comfort was not the managements priority.

Over 30 divestitures in under 20 years in efforts to only keep business that would continue to add value

In the cases analyzed, we might infer that during a period of economic difficulties companies had gone through deep discontinuity. As such, this determined the need for a turnaround to realign the companies’ strategies with the external and internal environment. These changes impacted the four companies analyzed previously.

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.