In contrast, Theory Y holds the view that work can be child’s play. People are committed, can work autonomous and still reach their work objectives, act responsible and are creative in fulfilling their tasks and dealing with problems. In principle, Theory X and Y are managerial theories, they reflect the propositions managers hold about their subordinates. Typical Theory X management is the traditional management style. Table 1 summarizes the underlying assumptions of both theories.
The classical management perspective represents the first well-developed framework of management (Davidson. P. et al, 2000). It’s the framework from which later theories evolved and concerns efficiency and productivity, which in turn leads to effective and efficient management. Scientific management and the Administrative theory are both classical management theories, which provide information on managing in the workplace, which are very useful and vital to have in the workplace. These theories are very different in many ways as they both have different purposes when managing in the workplace although there are one or two similarities, which illustrate its importance in the workplace. Both these theories contribute greatly to the understanding of management in many ways and can impact on contemporary management practices. The following analysis will further explain the classical management theories, which are scientific management, and the administrative theory. In analysing scientific management and the administrative theory one gains a greater knowledge of management and how it contributes to the workplace. It will then go onto comparing and contrasting the two theories and how they contribute to the understanding of management. And finally it will go into the importance, if any, for contemporary management practices. Through scientific management and the administrative theory one is able to understand management in the workplace and the importance of the theories.
The evolution of Organizational/Management Theory has evolved over 110 years to an extremely complex science. The beginning of the modern organization theory began during the middle of the nineteenth century with the rise of the factory system, where efficiency and mass production became the focus of productivity. Management theory on the other hand was slow to evolve over this time. During the late nineteenth and early twentieth century’s, the classical school of management emerged in an effort to develop an overlapping and comprehensive management theory with the emphasis on increasing the effectiveness of management in organizations.
Douglas McGregor, born in 1906, is considered to be “one of the most popular management writer of all time”( Economist, 2008, para. 3). His best known composition focused on a simple question: “What are your assumptions (implicit as well as explicit) about the most effective way to manage people?” which has resonated throughout management schools around the world. In his composition, The Human Side of Enterprise, McGregor revolutionized Theory X and Theory Y, which was greatly influenced by working along transient laborers at his grandfather’s business in Detroit, MI. Theory X management style, considered “soft” and always prone to failure, speculates people are lazy and irresponsible by nature, gullible, resistant to change, and lacks ambition. Therefore, Theory X manager must be authoritarian, responsible for organizing elements of productive enterprises – money, materials, equipment, people, - providing only the minimum level of human psychology, ego, social, and physical needs to get . In contrast, McGregor’s Theory Y is a libertarian manager, focusing on finding new methods of motivation and innovation though the goals are impossible to reach. By doing this, only then will people reach full potential (PSGoodrich, n.d., p. 24). McGregor’s Theory Y was criticized by other leaders, especially Abraham Maslow, who believed Theory Y is being “too tough on the weaker members of society” (Economist, 2008, para. 8).
Management is about bringing organisations or workers together to achieve the aims and objectives of the business. Management must do this using its existing resources in an efficient and effect way to benefit the goals. Within management you will find different type of people such as leaders and managers. The key distinctions between theses two are that leaders will have people follow them whereas managers have people work for them. The managers core is to
In sharp contrast to theory X, Douglas McGregor introduced a total difference thing called theory Y. He believes people want to work and learn, not only for paid, self-development is more important to them, they enjoy working while challenge themselves. Therefore what managers do, is to design the plan for the best outcome, for both employees and the organization, and ensure the plan works properly.
...useful to practicing managers’ to underpin management. I am surprised as I watch the literature, that some people are discovering what we’ve known for years. For example, some things like this: that technology affects management organization. I found that out when I was in the airline industry a few years ago and I never thought it was anything very interesting. Another, that the actual managing depends on the situation….I thought, my gosh, there must be something new there. Only to find, after spending a lot of time reading, that management theory and science should underpin practice, otherwise why develop it?” (420).
Management is an important element of an organization which coordinates organizational activities and its future plans. It adopts the whole organization to its environment and shapes it up to make it more suitable to the organization itself. Its main work is to organize,plan,actuate and control which are done to accomplish the company objective.
Management has progressed far since the days of traditional bookkeeping attributed by the Ancient Sumerians. However, there were two great comings that would change the scope of management forever. The first was contributed by one of the most prominent minds in history, Adam Smith, known as the father of economics and capitalism. The second would come from a great wave that would sweep over the shores of Europe and the rest of the western world, The Industrial Revolution. With the introduction of The Wealth of Nations, the Industrial Revolution and countless other contributions, our ideas of management were reformed and still improving.
To show the practicality of these theories I have chosen an IT company which uses some of the theories to deal with its employees. These theories have helped in the overall growth of the company, globally.