Theory X And Theory Of The Open System View

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Waddell, Jones and George (2013, p. 4) define management as, ‘ planning, organizing, leading

and controlling of human and other resources to achieve organizational goals effectively and

efficiently. ’ For establishing efficient and effective organization, many management practices

have developed gradually to arrange with the political, economic and cultural forces of their

time. This paper critically evaluates the theory established by McGregor i.e. Theory X and

Theory Y and also theory of The Open System View. The paper will initially introduce to the

theory. This will be followed by their contributions and limitations in managing employees

today. According to Douglas, human behavior is motivated by the style
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According to Theory X, the only method to motivate people to work are self interest or coercive

methods (Fisher, 2009, p. 356).

According to Theory Y, Management is responsible for organizing humans, machines and

materials to achieve desired results (Halepota, 2005, p. 16) The difference in Theory Y is that

workers are not lazy and they have a hope of achieving something. In this theory workers have

prospective to achieve something and be motivated and are also given freedom to work in their

own way and express their own ideas to dedicate in the success of organization (Halepota, 2005,

p. 16). It is natural for human beings to put effort into work. Employees like to use their

imagination and creativity to make decisions and in solving problems of organization.(Kermally,

2005, p. 38). When Theory Y is applied, employees attain self determination and ample of

opportunities which results in close relationship and mutual trust of employees and

managers.(Sait, Faruk, Onur 2014). Managers are not always idle. They spend time with people,

are engaged in one or the other stuff of organization and are engaged with people who form unity

(Brunsson, 2008). Training and sharing information are important for higher performance of an
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