Organizational Behaviour in 21st Century - Theory A' For Managing People For Performance
Organizational Behaviour in 21st Century - Theory A' For Managing People For Performance
Organizational Behaviour in 21st Century - Theory A' For Managing People For Performance
5 July 2016
Online at https://mpra.ub.uni-muenchen.de/72393/
MPRA Paper No. 72393, posted 07 Jul 2016 14:59 UTC
ABSTRACT
Theory X, Theory Y and Theory Z in organizational behaviour (OB) are related to human
motivation and management. Theory X and Y were coined by Douglas McGregor in the late
1960s, says that the average human being is lazy and self-centred, lacks ambition, dislikes
change, and longs to be told what to do. The corresponding managerial approach emphasizes
total control. Theory Y maintains that human beings are active rather than passive shapers of
themselves and of their environment. They long to grow and assume responsibility. Theory
Z of Dr. William Ouchi's also called "Japanese Management" focused on increasing
employee loyalty to the company by providing a job for life with a strong focus on the well-
being of the employee, both on and off the job. The above theories were developed based on
research conducted in various production related organizations in the 20th century. But in the
21st century, changes in business models, automation of production process, changes in
technology & business environment, and changes in people’s perception, are transforming
organizations into global entities. In the context of emergence of service industries and global
e-business organizations, these are no longer applicable and need modification. In this paper,
we have made an attempt to relook into human motivational theories and developed a new
Organizational Attitude Theory called “Theory of Accountability” (Theory A). The four
major constructs of Theory A are fixing Responsibility, maintaining Accountability,
continuous Monitoring, and fulfilling pre-determined Target (RAMT). In this paper, some of
the existing theories of organizational behaviour are examined and basic postulates and
detailed organizational model for Theory A is depicted.
Keywords : Organizational theories, Theory X, Theory Y, Theory Z, Theory A. Theory of
Accountability.
1. Introduction
Organizational behaviour (OB) is a scientific subject of study of organizations performance
based on analysis of human behaviour individually and in groups while making decisions. It
mainly focuses on impact of individuals, groups, and structures on human behaviour within
the organizations. Normally OB is applied in an attempt to create more efficient business
organizations in changing internal and external environment. A large number of research
studies and conceptual developments are constantly adding to its knowledge base. It is also an
applied science, in that information about effective practices in one organization is being
extended to many others. "Micro" organizational behaviour refers to individual and group
dynamics in organizations. "Macro" strategic management and organizational theory studies
whole organizations and industries, especially how they adapt, and the strategies, structures,
and contingencies that guide them. The major goals of Organizational behaviour are: (1) To
describe systematically how people behave under variety of conditions, (2) To understand
why people behave as they do, (3) Predicting future employee behaviour, and (4) Control at
least partially and develop some human activity at work. (5) To know how people can be
motivated and directed on to their responsibility to enhance the individual and group
performance to boost the productivity of the organization. Effectiveness in Organizations is
usually accomplished through practicing certain values such as
(1) Openness in behaviour – which indicates direct and openness to influence, commitment to
Benefits :
(1) Motivators result in positive attitude to work.
(2) Eliminates dissatisfaction.
(3) Enhances decide behaviour through optimum inputs.
Constraints :
(1) Approach to influence work centred behaviour gets divided focus.
(2) Measures to approaches differ.
(3) It is practically difficult to differentiate the factors in watertight compartments.
Disadvantages :
(1) Human tendency to compare with others may reduce the efficiency outcome.
(2) Change in behaviour calls for individual likeness of the organization.
(3) Raises employee expectations limitlessly.
3. Motivational Theories X, Y, and Z
'Theory X' and 'Theory Y' were created and developed by Douglas McGregor in the 1960s
[10]. These theories describe two contrasting models of workforce motivation applied by
managers in human resource management, organizational behaviour, organizational
communication and organizational development. According to the models, the two opposing
sets of general assumptions of how workers are motivated form the basis for two different
managerial styles. Theory X stresses the importance of strict supervision, external rewards,
and penalties: in contrast, Theory Y highlights the motivating role of job satisfaction and
encourages workers to approach tasks without direct supervision.
Features of Theory X :
The typical person dislikes work and avoids it if possible.
The typical person lacks responsibility, has little ambition and seeks security above
all.
Most people must be coerced, controlled, and threatened with punishment to get
them to work.
With these assumptions the managerial role is to coerce and control employees.
Theory X is based on pessimistic assumptions of the average worker. This management style
presupposes that the average employee has little or no ambition, shies away from work or
responsibilities, and is individual-goal oriented. Generally, Theory X style managers believe
their employees are less intelligent than the managers are, lazier than the managers are, or
work solely for a sustainable income. Due to these assumptions, Theory X concludes the
average workforce is more efficient under "hands-on" approach to management [11]. The
'Theory X' manager believes that all actions should be traced and the responsible individual
given a direct reward or a reprimand according to the action's outcomes.
(a) Advantages :
(1) Simplistic assumptions which could explain human behaviour in organizations.
(2) Easy to manage unproductive workforce.
(3) Suited to the early industrialization era.
(b) Benefits :
(1) Could be employed irrespective of deploying strategies.
(2) Quick results and easy management.
(3) Adaptive to prevailing culture and notions.
(c) Constraints :
(1) Negative and one sided assumptions about human nature.
(2) Yield short term results and become counterproductive.
(3) Managers tend to become autocratic.
(d) Disadvantages :
(a) Advantages :
(1) Employees tend to stay longer/permanently with the organization.
(2) Opportunity for participation in decision making.
(3) Employees shed fear of uncertainty over future.
(b) Benefits :
(1) Develop strong bond of unity and oneness with organization.
(2) Collective effort and productive teams.
(3) Increased loyalty to the organization.
(c) Constraints :
(1) Unproductive employees find comfortable haven.
(2) Staying longer does not increase loyalty.
(3) Consensus decisions may be disowned if it fails.
(d) Disadvantages :
(1) Opportunity for potential employees migrating from outside is minimized.
(2) Employees may give low priority to work than home and family.
(3) Consensus decision making will lead to delay.
4. Towards the Theory of Accountability (Theory A)
The theories discussed earlier are construed based on postulates of human behaviour in
organizations largely focused on motivation, support and socialization. A lot of changes in
external environment has taken place over time that the 21st century work force or otherwise
called new generation employees are subjected to changes which affect their psychological
and social outlook. Changes in technology have resulted in improving the quality of life,
making man a productive employee and aggressive consumer. Changes in economy have
resulted in increased earnings, now that he can afford many of the previously considered
luxuries which have become his essential needs now. Education has imparted knowledge and
skills required for employment in the competitive job market, but also induced liberal
thinking to confront diversities in all walks of life. Changes in civil society have changed his
perception of the society and the world around him. Fast growing information-
communication technology has made him receptive and fast responding. Today’s employee
is no more passive or lazy (theory X), or contended with rewards and support (theory Y), or
fascinated by social ties of affection and stability (theory Z). Instead we find him a self
centered professional who is trying to catch up with the fast pace of life yet fulfill the desires
of living. Share of commitment is vested not just in following the objectives but in fulfilling
the objectives. Therefore planning for realization of organizational and individual objectives
follows strategy adoptions which rely on role models of best performers as well as
exploration of one’s own self. Performance as well as responsibility towards targets is
realized through fulfilling accountability.
5. Theory A : Revolving around Accountability
Essential elements of Accountability Theory (Theory A) are
(1) Problem identification based on the objectives of the organization
(2) Planning based on set objectives
(3) Responsibility setting
(4) Target setting
(5) Resource allocation
(6) Working strategy
(6) Motivation
(7) Monitoring & Guiding
(8) Performance measurement metric
Accountability
Based on Focus group method, we have developed following postulates which connect the
above factors of organizational performance.
Postulate 1 : Employee outlook has changed over time.
Postulate 2 : The present day employee has considerable innate potential which the
organization is looking for.
Postulate 3 : His knowledge and skill could be enhanced in a conducive environment of
necessity and expediency.
Postulate 4 : The organization influence application of knowledge and skill into practice.
Postulate 5 : Identification of role models and self exploration can transform average
employee into real performer.
Postulate 6 : Rewards are not only a matter of money or position, but ones own feeling of
inherent creativity and contribution to the organization.
Postulate 7 : Such employees are highly motivated and identifies with the organization.
Postulate 8 : Targets are not externally suggested but jointly arrived at and compliance to
target is out of will.
Postulate 9 : Responsibility is nothing but efficiency in delivering targets to the required
extent and time.
Postulate 10 : Efficiency in individual and organizational performance is based on
accountability to oneself, one’s own job and to the job giver.
Postulate 11 : Accountability is sin-qua-non to commitment. The more the commitment
greater is the Accountability.
6. Target, Responsibility and Monitoring Framework on Accountability
Out of five major goals of Organizational Behaviour mentioned in the introductory section of
this paper, all of them are covered in Theory A and the details are listed in table 1.
Table 1 : Explanation of how the major goals of OB can be achievable using Theory A.
S. No. Major OB Goals Solution by Theory of Accountability
1 To describe systematically how Organization influences application of
people behave under variety of knowledge and skills into action based on
conditions. conditions prevailing in the organization.
2 To understand why people behave as Employees own feeling of creativity levels
they do. vary.
3 Predicting future employee Rewards make sense in feeling of
behaviour. contribution to the organization ‘the more
the grater’.
4 Control at least partially and develop Targets are jointly arrived at and efficiency
some human activity at work. in delivering targets is construed as
responsibility.
5 To know how people can be Efficiency in performance can be boosted
motivated and directed on to their through increasing accountability to one-
responsibility to enhance the self, once own job and job giver.
individual and group performance to
boost the productivity of the
organization.
The four major constructs of Theory A are fixing Responsibility, maintaining Accountability,
continuous Monitoring, and fulfilling pre-determined Target (RAMT) and are controlling
aspects of the performance/productivity of an employee around the yard stick called
Accountability (Fig. 2).
Target
Accounta
bility
Responsibility Monitoring
With mutual target setting the institution published 400 research papers in a span of two year
covering six conferences. Each faculty contributed about 2 to 5 papers in every conference.
Some who showed better and faster result emerged role models. Self exploratory
opportunities yielded result [5].
Problems encountered and Resources required
At the time of introducing this system, the following problems were encountered and
necessitated the resources to implement it.
Themes were framed for the conferences such that it would provide a broad range of
topics to be included.
In order to give greater value to the publication, ISBN numbers were required by the
institution.
Conference days were declared holiday for students so that faculty could sit through
the session.
Financial support was sought from managing committee of the institution.
Arrangements for refreshments were done closer to the venue.
Faculty representatives became conference coordinators so that they own and manage
their own programme.
11. ABCD Analysis of Theory A
ABCD listing and Analysis using ABCD framework are two models of qualitative [17-23]
and quantitative ABCD analysis [24-30] respectively. In this section we have used ABCD
analysis for qualitative listing of advantages, benefits, constraints and disadvantages of
Theory A.
(a) Advantage
1. Suited to changes in the employee profile in the new century
2. Acknowledges human potential and capability to create change
3. Emphasizes quest for creativity
(b) Benefits
1. Assuming Responsibility utilizing opportunity to perform
2. Accountability results in sustainable organizational effectiveness
3. Utilizing creativity as operational energy
(c) Constraints
1. Differentiating talents is difficult in complex organisations
2. Not all employees may be proactive in setting targets
3. The strategy to the approach is subject to further test
(d) Disadvantages
1. Takes time to generate output from slow performers
2. Self exploration needs effort and demands genuineness
3. Inability to realize targets may give frustration
12. Conclusion
Human behaviour in organizations has always been an intriguing subject of study for
behavioural scientists. Postulates founded on positive and negative approaches to human
nature prevailed in the form of theory x, Theory Y and Subsequently theory Z. In all these
cases, consideration on ‘quest for creativity’ inherent in human nature was overlooked. The
proposed theory A revolves around accountability as the commitment arising from joint
target setting and assuming responsibility as opposed to fixing targets and assuming
responsibility. The 21st century workforce is different from its counterparts of the past. This
theory fits well as an alternative to explaining organizational behaviour in 21st century
changed workforce psychology and managerial practices.
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