Q1) Discuss why learning about Theory X and Theory Y is important

Q2- How does efficiency differ from effectiveness? Give an example of a goal that has been achieved efficiently and effectively.

Q3- What is benchmarking? And how should it be implemented? 

 

Ans 1- These theories are given by Douglas McGregor.

Theory X is based on classical thinkers who believe that money is the greatest motivator in the organisation. According to this theory, for getting higher productivity from the employees there must be centralized authority, specialized jobs, job security and rewards and punishments should be performance based in the organisation.

This theory believes that employees are lazy, irresponsible and non creative by nature.

Theory Y believes that employees are active , responsible, imaginative, creative and ambitious by nature.

They are willing to work under congenial environment and they treat work as natural. This theory says that employees are not lazy and they do not need supervision.

Learning about these theories is important because they are the two sides of a coin. These theories should be used by the managers according the prevailing situation in the organisation.

For example, if the employees have become undisciplined or there is strike in the organisation or there is an urgency to meet production targets then Theory X should be adopted.

Theory Y is adopted in the long run. It is based on the positive assumptions about workers. When the employees are responsible, self directed, self controlled or there is a friendly environment in the organisation then Theory Y is a preferred choice.

Ans 2- Efficiency is the ability to achieve the targets with minimum resources . This is the ability of getting things done without wasting the time, money and efforts.

Efficiency improves the performance. It is about reducing the cost and increasing the productivity.

Effectiveness means to achieve the desired targets in a specified time.

It is about what is right and what should be done in a particular situation. Effectiveness leads to growth of the organisation. 

For example, if a manager's target is to produce 1000 units of goods per month at a cost of Rs. 3 per unit.

And if he achieve this target on time without wasting any resources or without increasing the cost or without delaying the specified period, then the goal is said to be achieved effectively and efficiently. 

Ans 3 - Benchmarking is making meaningful comparisons to others and identifying opportunities to improve. Benchmarking is done to compare to others that are " best in class" . Benchmarking is often seen as a way to identify the current leader in a field, identify the gap with that leader, and take action to close the gap.

Benchmarking should be implemented by the following process:

• Select the subject areas important to your business.

• Define the process that exists in these subject areas.

• Identify the partners you want to benchmark with.

• Determine the gap between business and partners and establish the process difference between them.

• Set targets for future business performance.

• Communicate what the company is doing to business teams.

• Implement change.

Celebrate the results of benchmarking in terms of improved operational performance and profitability