Question

YOU ARE THE NEW C.E.O OF A COMPANY THAT IS FAILING...REASON...NOT THE BEST ORGANIZATONAL CULTURE SET UP BY THE PREVIOUS OWNER! WOULD YOU IMPLEMENT THEORY X OR THEORY Y IN TURNING THE COMPANY AROUND? HOW CAN CHANGING THE POWER AND THE CONTROL OF THE CO-WORKERS CHANGE THE PROFITABILITY OF THE BUSINESS? GIVE REAL LIFE EXAMPLES - WRITE AN ESSAY OF 250 - 300 WORDS.

Answer 1

I am CEO of the company which is falling due to bad organisational culture set by the previous owner.

I would probably use the mixture of theory X and theory Y in order to turn the company.

Theory X: This style of manangement assumes that the workers do not like their work and try to avoid the work as much as possible.So in order to get work done strictness is required.

Theory Y: This style of management assumes that the workers are happy with their work and they do not need to be punished in order to get work done as they understand their responsibility.

If the workers are too lazy to work and do not like their work,they need to be strictly handled but if the strictness exceeds the limits it may become problamatic. So i need to make sure which workers nedd to be tackled and which not.

For eg: A company XYZ has hired 10 new employees, 8 of them are freshers and 2 of them are skilled and experienced but all of them do not like to work. Manager checked the performance of evryone of them but all were below average. It repeated for 3 times. Now the manager got strict and told the workers to maintain efficiency or else they will be paid less than told. Due to this threat the employees started working efficiently, so theory X says that we need to be a bit strict in order to get work done. However you should not exceed the strictness limits, it may result to the demotivation of employees and eventually leaving the office destroying your reputation.

If the workers are self motivated to work and they are performing well in their fields , they do not need to be strict with infact they should be given motivation so that they keep on with their work, but you should also keep in mind that unncessary freedom might allow the workers to become careless and lose interest and focus in the work. They may also take advantage of the relaxed environment. So do appreciate them but along with that motivate them to perform more.

For eg: In company XYZ, there are 7 employees who work very hard and very efficiently. The manager appreciated all of them and gave them a leave of 1 week to enjoy, after that 1 week they came back to office but were not working with the same enthusiasm as earlier because they have taken the manager for granted , now the manager knows how to tackle them, he kept them motivated by saying that the workers who work  extraordinary will be given gift vouchers and incentives. Now those workers who were shirking their work have started working more hard.

Changing the power and control of the workers lead to profitability of the business because the work is done by the workers, if there is no worker in the office, the busines will eventually be in loss, so when they are motivated to do work and their powers are changed they ultimately work very hard bringing profit to the business.