User:Glaiza Mae N. Ogad (MBA Student)

The Manager’s Secret Technique

After the World War II, when organizations are starting to become bigger and more complex, that differences in management approach and philosophy became a serious-minded of academic research and executive concern. In the late 1960’s, Douglas McGregor was one of the first widely read authors to distinguish the differences between his theory X and Theory Y definitions of management as drafted in his influential book, The Human Slide of Enterprise.

In Theory X most employees hate work and will avoid it as much as possible and they are being controlled, have low ambition and lastly they are motivated by fear and money. Work in organizations that are managed like this can be monotonous and people are often motivated with a “carrot and stick approach”. Performance appraisal and remuneration are usually based on tangible result such as sales figures or product output and are used to control staff. In this theory managers are more authoritarian and actively intervene to get things done and tend to take a pessimistic view of their people.

In Theory Y, employees like to work toward goals and commitment to goals increases based on perceived reward for achieving them. Most of them seek responsibility and their imagination, creativity and cleverness can be used to solve problems and lastly they are motivated by a variety of rewards. In this theory managers have optimistic positive opinion of their people and they use decentralized, participative management styles. This encourages a more collaborative, trust based relationship between manager and their team members.

Let me tell you a story that is applying this theory.

''In a big city, there is one company that was engaged in buying and selling of product. The general manager noticed that the sales every month was decreasing. He did arrange an emergency meeting with the team leader of the three teams. During meeting the General Manager said that there will be a competition between them. The team with a higher rate of sales will receive a reward. He also said that they can use different techniques on selling the product. The competition result will be out at the end of the month.''

''           In Team A, the team manager was very strict with his member. He gives a strict rules and guidelines on selling the product. He always checks if there is an improvement on the sales and always reminding them that need they to win the competition.''

''           In Team B, the team manager was very carefree. He didn’t give a rules and guidelines to his member. He never checks the sales and doesn’t care about the techniques that his member uses. He ignored the deadlines of the general manager.''

''           In Team C, the team manager has a rules and guidelines to his member but not a strict one. He asks everyone what kind of technique they should use on selling the product and everybody gives an idea. Sometimes he checks them if there’s a problem in selling the product. He said to his member that they must enjoy their job and disregards the deadlines and the rewards that they will receive if they won the competition.''

''           At the end of the month the general manager announced that Team C won the competition. He said that the approach that Team C use make them won which is the Theory X and Theory Y of Douglas McGregor because they applied it equally.''

Managers tend to be more practical, reasonable, and decisive. That’s why they will likely use a mixture of Theory X and Theory Y.