Organizational Management the Theory X and Theory Y

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On the other hand, Theory Y presumes that the workforce is self-motivated, ambitious, exercise self-control, empowerment, self-direction and autonomy and is anxious to acknowledge greater responsibility. Consequently, the workers exhibit creativity at work when given a chance, which subsequently leads to greater productivity. According to Griffin and Moorhead (2011), the manager gives the employees to conduct their responsibilities to the best of their capability, without the hindrance of rules. In this case, satisfaction is the strong motivation for the employees. The manager has a positive attitude towards his employees, which creates enthusiasm for both the manager and the employees.Both theories determine the leadership style that a manager can employ depending on the employees. For example, Theory X shows that a manager can adopt an authoritarian leadership style, which will allow him to give threats of punishment for the lazy employees. However, democratic leadership is more appropriate in Theory Y, since the employees are self-motivated, self-directed and ambitious (Tosi and Pilati, 2011). Moreover, the theories bring out the comparisons and contrasts of the different characteristics that influence work behavior and organizational effectiveness. As a manager, an employee who was lazy and constantly absent from work, I had to design with a working plan and incentive plan to motivate him to work. Failure for the employee to improve meant I give him a compulsory leave….
oreover, the theoriesbringout the comparisons and contrasts of thedifferentcharacteristics thatinfluencework behavior and organizational effectiveness. As a manager, an employee who was lazy .constantlyabsent from work, I had todesignwith a workingplanand incentiveplantomotivatehim towork. Failure for the employee to improve meant I give him acompulsoryleavewithoutpaymentas punishment. In the case of a motivated,ambitiousand driven employee, I allowed the employee to make the decision regarding the task at hand. In Business Finance, Arbitrage Pricing Theory addresses the overallconceptofpropertypricing. Properpropertypricing is essential for the accurate pricing of shares. The Arbitrage Pricing Theory asserts that the expected return from a financialassetcan be obtained as a linearutilityofseveralmacro-economic factors .theoreticalmarketindices. These factors correspond to a factor-specific beta coefficient and aresensitiveto changes (Griffin and Moorhead, 2011). The Arbitrage Pricing Theory allows theanalysisof the alternative solutions to the business problems, especiallyfinancial.assetproblems. A company may obtain additional financial resources from its assets, debentures, preference shares and ordinary shares, whose pricing isdependenton asset pricing. In addition, it allows theformationoffinancialdecisions, for instance, acquisitions and mergers. The company wanted tofloatordinaryand preference shares in a right issue as awayof raising capital. The proper pricing of the company’s assets wasdecisivein determining the share price, and subsequently, thecapitalthat could be raised from the rights issue (Oppong, 2011). A majortheoryin