Douglas Murray McGregor's : Theory Y & Theory X

Theory X & Theory Y

Douglas  McGregor  was a  management professor at MIT  Sloan School of Management and president of Antioch College  from 1948 to 1954. He also taught in IIM Calcutta . In his book The Human Side of Enterprise, he talked about two theories called Theory X and Theory Y. McGregor identified an approach of creating an environment within which employees are motivated via authoritative, direction and control or integration and self-control, which he called Theory X and Theory Y.

THEORY X

Theory X is an authoritarian style where the emphasis is on “productivity, on the concept of a fair day's work, on the evils of feather-bedding and restriction of output, on rewards for performance … [it] reflects an underlying belief that management must counteract an inherent human tendency to avoid work”. Theory X is the style that predominated in business after the mechanistic system of scientific management had swept everything before it in the first few decades of the 20th century.

Following are the assumption made by  Theory X style of management :

• An average employee intrinsically does not like work and tries to escape it whenever possible
• Since the employee does not want to work, he must be persuaded, compelled, or warned with punishment so as to achieve organizational goals. A close supervision is required on part of managers. The managers adopt a more dictatorial style
• Many employees rank job security on top, and they have little or no aspiration/ ambition
• Employees generally dislike responsibilities
• Employees resist change
• An average employee needs formal direction

Managing your X theory boss

Working for an X theory boss isn't easy - some extreme X theory managers make extremely unpleasant managers, but there are ways of managing these people upwards. Avoiding confrontation and delivering results are the key tactics. Following points should help in managing Theory X managers :-

• Theory X managers are primarily results oriented - so orientate your your own discussions and dealings with them around results - ie what you can deliver and when
• Theory X managers are facts and figures oriented - so cut out the incidentals, be able to measure and substantiate anything you say and do for them, especially reporting on results and activities
• Theory X managers generally don't understand or have an interest in the human issues, so don't try to appeal to their sense of humanity or morality. Set your own objectives to meet their organisational aims and agree these with the managers; be seen to be self-starting, self-motivating, self-disciplined and well-organised - the more the X theory manager sees you are managing yourself and producing results, the less they'll feel the need to do it for you
• Always deliver your commitments and promises. If you are given an unrealistic task and/or deadline state the reasons why it's not realistic, but be very sure of your ground, don't be negative; be constructive as to how the overall aim can be achieved in a way that you know you can deliver
• Stand up for yourself, but constructively - avoid confrontation. Never threaten or go over their heads if you are dissatisfied or you'll be in big trouble afterwards and life will be a lot more difficult
• If an X theory boss tells you how to do things in ways that are not comfortable or right for you, then don't questioning the process, simply confirm the end-result that is required, and check that it's okay to 'streamline the process' or 'get things done more efficiently' if the chance arises - they'll normally agree to this, which effectively gives you control over the 'how', provided you deliver the 'what' and 'when'.

THEORY Y

Theory Y is a participative style of management which “assumes that people will exercise self-direction and self-control in the achievement of organisational objectives to the degree that they are committed to those objectives”. It is management's main task in such a system to maximise that commitment

Following are the assumptions made by Theory Y style of management :-

• Employees can perceive their job as relaxing and normal. They exercise their physical and mental efforts in an inherent manner in their jobs
• Employees may not require only threat, external control and coercion to work, but they can use self-direction and self-control if they are dedicated and sincere to achieve the organizational objectives
• If the job is rewarding and satisfying, then it will result in employees’ loyalty and commitment to organization
• An average employee can learn to admit and recognize the responsibility. In fact, he can even learn to obtain responsibility
• The employees have skills and capabilities. Their logical capabilities should be fully utilized. In other words, the creativity, resourcefulness and innovative potentiality of the employees can be utilized to solve organizational problems

Many people interpret Theory Y as a positive set of assumptions about workers. A close reading of The Human Side of Enterprise reveals that McGregor simply argues for managers to be open to a more positive view of workers and the possibilities that create enthusiasm

CONCLUSION

Though these theories are very basic in nature, they provide a platform for future generations of management theorists and practitioners to understand the changing dynamics of human behavior. Taken too literally, Theories X and Y seem to represent unrealistic extremes. Most employees (including managers) fall somewhere in between these poles. Recent studies have questioned the rigidity of the model, yet McGregor's X-Y Theories remain guiding principles to the management to evolve processes which help in organizational development. A mix of practices which ensure a healthy blend of systems and the freedom to perform at the work place is likely to motivate the employees more. This mix of practices calls for induction of technology into HR. How we can practice Talent Management in all types of organizations will indicate how well we have understood & deployed these theories X and Y in our real time environment

Really want to check whether your company follows Theory X or Theory Y style of management or You your self is Theory X  worker or Theory Y worker. Visit Theory X & Theory Y

Social Entrepreneurship : Bringing change to the lives of poor people

INTRODUCTION

How many of us ever go on to create something  that will benefit the people belonging to the lowest strata of society ?

Honestly speaking only few of us has the vision to create something like this. Harish Hande and Nand Kishore Chaudhary. 

Chaudhary started  Jaipur Rugs and Harish started  Selco. 

JAIPUR RUGS

Jaipur Rugs  is a Indian carpet making company based in Jaipur founded by Nand Kishore Chaudhary . Jaipur Rugs is the largest manufacturer and exporter of Indian hand-knotted rugs. Jaipur Rugs procure wool from different sources and then it give to 28,000 traditional weavers who are living in nine different states of India. 

Jaipur Rugs operates with the help of a complex web of humanresources:Approximately 300 direct, full-time employees:

• 7 family members
• 226 headquarters employees
• 70 regional branch office staff, including 40 area commanders approximately 
• 40,000 contractors (indirect employees): 28,000 weavers and 12,000 other laborers involved in the manufacturing process

Jaipur Rugs is changing the traditional model of middleman-ownedlooms to enable weavers to own their own looms. They support weaversto obtain subsidies from the government that help finance 50 to 75percent of the cost of the looms in some regions. For example, JaipurRugs began working in Sonbhadra district (in the Mirzapur region) in2006. In this district, a number of weavers had transitioned fromworking on looms owned by middlemen to purchasing their own looms.It cost Rs 7000–8000 (USD $152–USD $174) for a locally-made loom,and Rs 16,000–20,000 (USD $348–USD $435) for a higher-qualityloom. In this region, it is common to see double looms on which twosumak rugs can be made at the same time. Weavers can start with justhalf the loom at a cost of Rs 3000–4000 (USD $65–USD $87) andupgrade later to the full double loom. In some cases, the company loanslooms to weavers until the weavers gain enough credibility to get amonetary loan to purchase their own looms. For example Mr. Sakir Ali was a weaver in Sonbhadra district, who had been working directly for Jaipur Rugs since 2006. Within his first 1.5 years of working for Jaipur Rugs, he bought two new double looms and said that he earned more income than he did previously when he worked for a middleman. His wife and two daughters were trained by Jaipur Rugs Foundation. He was happy that his two daughters were weaving because they could earn money in the home without having to work in the fields.His wife also said that she was happy because she could earn money forher family and work beside her two daughters.

Jaipur Rugs  is not only  facilitating  weavers in their daily wage earning but also creating entrepreneur out of them.  Rohitari is an entrepreneur in Sonbhadra district, who used to be a weaver. He used his own resources to purchase three looms and as of May,2008, he employed 12 people. He produces rugs exclusively for Jaipur Rugs and uses the revenues to pay back his loom loans and reinvest in his business, which he plans to continue to expand.

Below given is a snapshot which shows how Jaipur Rugs is making a difference. 

The company’s social values are reflected in its commitment toprovide the following:

Competitive wages

—Wages paid by the company give peopleoptions to have a better quality of life than the alternative workavailable in villages.

Investment in skills training

—The main activities of the JaipurRugs Foundation are to recruit and train new weavers for thecompany.Because of the social impact that Jaipur Rugs has onmany regions of the country, the government subsidizes the cost of looms and training in certain regions.

Access to healthcare and education

—The Jaipur Rugs Foundation leverages alliances with other NGOs that provide healthcare and education to the weavers.

Opportunities for aspiring entrepreneurs

—When he recognizes contractors who do good work and have the right attitude,Chaudhary believes in giving them loans so that they can becomekey links in the overall production process. As a result of hisrecognition of their talents, many contractors see their incomes,social standing, and capabilities multiply

SELCO

SELCO India is a Bangalore based social enterprise that makes solar lightingtechnology accessible to the economically impoverished people of India. SELCO’smission is based on a simple but powerful idea that the economic conditions of theimpoverished can be improved substantially if they are made productive.And one of the biggest hurdles before such productivity of the Indian poor is their inaccessibility to clean andcost effective sources of electricity. Most of India’s rural population does not have access toelectricity. Instead, they are dependent on highly polluting and inefficient sources of energysuch as kerosene or forest wood. Solar lights are free from pollution and provide greater illumination. However, given an average rural income of less than US$ 50 per month, upfrontinvestment in solar lighting, ranging from US$200 to US$500, can be expensive andseemingly unviable for the average rural household. To tide over this situation, SELCO madesustained efforts to persuade state owned rural banks to lend money to households so thatthey can make the purchase. They worked extensively with these state owned bank, anarduous task in India, to ensure that the repayment pattern matched the cash flow that would be generated as a result of the additional income facilitated by the purchase of solar lights.

SELCO was founded in 1995 by Dr Harish Hande, who did his Masters and PhD fromUniversity of Massachusetts, Lowel, at the Centre for Sustainable Energy. Since his graduatestudent days, Harish firmly believed in the potential of solar energy for improving productivity of rural households. He was confident that the economically backward would be able to leverage solar technology and it was possible to build a profitable business model even while such business met a larger social objective. However, to make it sustainable, the users of solar lights should be provided with doorstep financing and doorstep services. It wouldalso necessitate customizing the product and associated services for specific needs of the poor.Till date, SELCO has sold solar lighting to more than 100,000 rural homes and institutions inthe Indian state of Karnataka. Employing about 170 people, SELCO services thesehouseholds from 25 service centers scattered all across rural Karnataka. For its efforts SELCO and Harish has received several awards and recognition. While SELCO has been ableto establish a sustainable business model that realizes Harish’s vision of bringing low cos tenergy solution to the economically impoverished, its challenge today is to create greater impact by scaling their business as well as creating an organization that sustains its success beyond the tenure of its founding members.

Till date, SELCO has sold solar lighting to more than 100,000 rural homes and institutions inthe Indian state of Karnataka. Employing about 170 people, SELCO services thesehouseholds from 25 service centers scattered all across rural Karnataka. For its effortsSELCO and Harish has received several awards and recognition. While SELCO has been ableto establish a sustainable business model that realizes Harish’s vision of bringing low costenergy solution to the economically impoverished, its challenge today is to create greater impact by scaling their business as well as creating an organization that sustains its success beyond the tenure of its founding members.

Educating World Through Innovation : KHAN ACADEMY

Introduction:

Salman Khan founder of KHAN ACADEMY says : "Changing education for the better by providing a free world-class education to anyone anywhere" . Salman Khan education???? he is a bollywood hero right! 


I'm talking about Bangladeshi American educator Salman Khan, a graduate of MIT and Harvard Business School who quit his plump job to pursue a not for profit organisation in the field of education.


Khan Academy is the  most happening  thing happen to the field of education in the last decde.

Organisation Structure:

Khan Academy organisation structure consist a team of 28 core members and hundreds of volunteer who contributed  hundreds of videos,lectures on different subjects.
One can look in to the core team by vistin the below given link :
http://www.khanacademy.org/about/the-team

Business Model:

Khan Academy as I stated earlier is a not for profit organisation. Now the obvious question arises is that how this organisation is running?


Currently, Khan Academy is supported by three big donors, Bill and Melinda Gates, Google and the O’Sullivan Foundation and number of small donors. I think, there is little doubt that others will follow suit in order to keep Khan Academy going for the next years. The interesting part begins when we start thinking what is going to happen when the first students will tie their financial success to what they learned for free at Khan Academy.

Universities receive large sums from their alumni every year who want to give something back to the institution that provided them with the tools to succeed in life. What happens when Khan Academy was responsible for the success of a new breed of entrepreneurs in developing countries. They might donate to their alma mater.

Effect & Impact:

Is really Khan Academy able to achieve its mission of ,"Changing education for the better by providing a free world-class education to anyone anywhere". Lets look at a video below and we will get the answer. 

Number of unique visitor to the khanacademy.org is estimated around 3.5 million. This number is growing by leaps and bound.


USP:


How khan academy is different from other educating sites?

• Students are free to learn anytime, anywhere
• Students can jump to where help is needed most, and spend as much time as necessary to master concepts
• The content is short, fun, approachable, and easily digestible
• There is a clear and continuous path to learning complex topics
• Students feel an increased sense of ownership - they are learning, not "being taught"
• The focus on core conceptual understanding ensures students build the necessary skills that are applicable in any curriculum used in schools
• Interactive practice ensures concepts truly sink in
• Rich data helps teachers monitor progress and provide focused support
• Teachers are empowered to make their classroom experiences much more fun, engaging, and social, with less lecturing and more project-based learning and peer tutoring.