ADMASS UNIVERSITY

SCHOOL OF POST GRADUATE

MASTER OF BUSINESS ADMINISTRATION

Assignment (Individual)
Management Theories and Practice

By Nardos Negussie PGMGA/1317/22

Submitted to: Gebrekidan Fisseha

Submission Date: Mar12, 2023

 1. Define theory X and theory Y.
Theory X and theory Y are part of motivational theories. Both the theories, which are very
different from each other, are used by managers to motivate their employees. Theory X and
theory Y follow different methodologies of keeping people motivated.

Theory X

 Theory X is formulated on the traditional approach to human behavior, which states that
severe form of leadership must be used to persuade workers towards achieving the
organizational goals. Some of the assumptions adopted in this theory include;
 People dislike work and are geared towards searching reasons to avoid working
 Workers avoid responsibilities and my lack ambitions or goals.
 Employees are lazy, and as such, they must be threatened or forced to work.

 Follows an authoritarian approach to motivate people. One of the key assumption in this
approach is that the average employee doesn't like work and will do anything to avoid it
and Gives importance to supervision.

 The other assumption under theory X is that the employees need to be threatened or
forced to work towards the organizational goals. They will avoid responsibility and the
managers have to supervise them at every step.

 In an organization where theory X is followed, the management too follows an

authoritarian style. There is little delegation of authority from the management.

 Theory X works on the idea of punishing people to keep the work going.
Theory Y

 This is the modern approach to management, which emphasizes on a harmonious

corporation between employees and control of the company. According to this theory,
employees’ goals and those of the organization do not contradict one another. Theory Y
has its fundamental concern on the satisfaction of employees. The following are some of
the assumptions have in this theory.

 Employees love to work, and they treat work as natural

 People are innovative and will formulate creative decisions for their growth and growth
of the company
  People are self-controlled and self-directed on the way to achieving their set goals and
objectives
 Lastly, proper working conditions help people to learn and seek responsibilities.

 On the other hand, companies who follow theory Y have a more decentralized approach,
which means that the authority is distributed among employees. This keeps them
motivated.

 There are some key assumptions under theory Y. One of them is that employees take
responsibility of their actions and work towards achieving the goals of the organization
without much supervision.

 The workers are more participative and try to solve problems on their own without
relying on supervisors for guidance. This type of management style is more common than
theory X. In this type of management style, even a small employee can participate in the
decision-making process.

 Promotions, rewards, and recognition play an important part. This keeps employees
motivated to work hard towards achieving goals of the organization.

2. Elaborate the controlling process.

The controlling process is when managers set, measure and refine their business operations and
manage cost control.
Through the process of controlling in management, a company can accurately tell if plans are
moving in the right direction and are fully implemented. If those plans aren’t working and take
the company off-track, they can right the ship and stay on course.
There is a four-step procedure for controlling processes
1. Set/ establish Performance Standards
We need guidance for our team to keep them working towards that goal. Without such standards,
it’s possible that they’ll move away from the plan, whether intentionally or not.

Standards are like goals that are tasked to a specific department or team member. They must
achieve these standards through cooperation, teamwork and a collaborative effort. To ensure
these standards are being met, though, you must-have criteria to measure them by.
By setting up rules you can measure with, you can judge or rate performance to keep the results
standard. This helps management understand how production is progressing, and whether it’s on
track or needs adjustment. Having standards to base performance on means that work doesn’t
have to stop to get a picture of how it’s progressing.
2. Measure Performance
Setting a standard makes it possible to measure performance using a control function. Through
this measurement of performance, you can quickly catch and correct any deviation from the plan
before it goes off-track and runs production into the ground.

Measurements are easier when dealing with tangible standards that can be seen and counted.
This is naturally more difficult with intangible standards. By definition, intangible performance
is difficult to measure in an information system, as you cannot quantify it.

3. Compare Actual Performance against Performance Standards

Once you have a baseline for how your teams are performing you can compare the actual to the
planned performance and determine the extent of the deviation. This is called variance, or the
difference between actual performance and goals. Schedules can be immensely helpful when it
comes to analyzing variance.

4. Take Corrective Actions

Once you have analyzed the deviation and determined its cause, the manager will have to set up
a plan in which corrective measures, critical point control and other means are used to resolve
the issue. This is to reduce the deviation and ensure the standard is met. This might involve
changes to processes and/or behaviors.

Some of the situations discovered in a controlling process might require corrective action to save
the business, while others might just be a below-standard performance that needs correcting to
improve processes and bring production back on schedule. Therefore, actions might be needed
immediately because of the urgency

3. Define the different type of leadership styles.

German-American psychologist Kurt Lewin is credited with branding the basic leadership styles
in 1939. Lewin and his researchers tasked schoolchildren with an arts and crafts project while the
team observed behaviors and responses to different styles of leadership.
Lewin identified three styles of leadership: Autocratic, Democratic, and Laissez-faire.
1. Autocratic Leadership
Also known as Authoritarian Leadership, an Autocratic Leadership style can easily be summed
up by the command, “Do as you’re told.”
In Autocratic Leadership, direction comes from the top, a singular figure who leads a company
or team. An autocratic leader determines strategy, policies, procedures, and the direction of the
organization, dictating everything to subordinates. Authoritarian leaders are not focused on
collaboration with those in their circle, they are rarely interested in feedback, and they prefer to
hold all of the power and be in charge.
Qualities: Autocratic leaders often possess qualities subordinates look up to, such as
decisiveness, self-confidence, and a steadfast, focused commitment to the goal.
When It Works: While Autocratic Leadership and the “Don’t question my commands” approach
doesn’t sound like fun, there are occasions when this leadership style can be appropriate and
effective, such as in urgent or chaotic situations that require someone to reign in the team and
make a prompt and effective decision.
When It Doesn’t Work: Employees working under an autocratic leader may feel micromanaged,
and because all directives come from one person at the top, they may become dependent on that
person for direction and incapable of making business decisions on their own.
2. Democratic Leadership
Also known as Participative Leadership, the Democratic Leadership approach involves gathering
input from your subordinates and team members so everyone has a chance to contribute to the
decision-making process. Democratic leaders are still the decision-makers, but their approach
allows others to feel engaged and have a stake in the final outcome. Democratic leaders excel at
sparking creativity among subordinates, and projects are enhanced when positive contributions
come from all sides.
A democratic leader encourages the free exchange of ideas throughout the team. All members
have a valued voice and the leader acts as a spokesperson or facilitator. Democratic leaders rely
on the participation of every member of the group. They emphasize the value and expertise each
member brings to the table. Every team member shares the freedoms and responsibilities of
leadership.
Qualities: Democratic leaders possess a curiosity that drives their desire for input from all sides.
Their desire for a participative environment also makes them great communicators, and
subordinates often find them easily approachable.
3. Laissez-faire Leadership
Don’t let the name deceive you. Laissez-faire Leadership is not a “Who cares?” approach.
Rather, it involves empowering your employees, being hands-off, and trusting them to
accomplish the task at hand without constant questions or micromanagement. Laissez-faire
leaders leave decisions to their employees, while staying available to provide feedback when
necessary.
Laissez-faire leaders are the hands-off type. They assign tasks and give general direction, but
they’re usually uninvolved in day-to-day tasks. Employees decide on the best approach to fulfill
their responsibilities. Laissez-faire leaders put a great amount of faith in the individual. They
trust them to remain self-motivated, on-task, and accountable. If issues arise, these leaders are
available to offer direction, but only upon request. Laissez-faire leaders allow each member of
their team to succeed or fail based on their own abilities.
Qualities: Laissez-faire leaders are excellent at delegating, and they instill confidence in
employees when assigning them tasks without oversight. They are capable of providing
constructive criticism when needed, and are often seen as trusting, as they willingly place
responsibilities in the hands of employees.

4. Explain the role of motivation in leadership.

Motivation is a critical ingredient for long-term success.

 Motivation can facilitate better decision making.

 Motivation can boost productivity

 Motivation can improve communication

 Motivation can increase job satisfaction

 Motivation can foster a positive work environment

 Motivated leaders are more likely to possess the ability to create a vision and inspire
those they lead to achieve it.

 Motivated employees are more likely to view their job positively, be more engaged in it
and show high productivity levels.