Q.

You are starting a new manufacturing company. What phases would you go through to select
your employees?

Solution:

When will we get the requirement or when does the need arise to select employees?

We will get the requirement in 2 cases (generally)

 Exit of the Employee (Retirement, Resignation, Dismissal / Termination.)

 Business Growth / Expansion

For every organization it is important to have a right person on a right job. Recruitment and Selection
plays a vital role in this situation. Every organization needs to look after recruitment and selection
when additional manpower is required due to expansion and development of business activities.

Now what is this recruitment and selection?

Recruitment is a positive action, which results in receiving lots of application. Recruitment is a

scientific and continuous process where by the firm attempts to develop a pool of qualified applicants
for the future human resources needs even though the existing vacancies do not exist.

But we are concerned and paid for selecting the right candidate from the whole bunch of applications
that we receive. But when we talk about hiring or filling a position, we don’t refer to has selection
process, rather it is referred to as recruitment process. For the very reason, that selection is the end
result of recruitment. It doesn't finish until after the appointment has been made.

If we follow the process of recruitment thoroughly, then we are sure to achieve the end result of
“selecting the right candidate” at the right time and at the right cost. In short:

RECRUITMENT – Placing the RIGHT PERSON in the RIGHT PLACE at the RIGHT TIME.

Now let us see exactly as to which all phases we need to cross to select the best employees especially
when we are starting a new manufacturing company.

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Phase 1: Manpower planning

Selecting employees can be a real minefield. The right ones will add value to your business and help
you scale up. Bad employees will cause untold amounts of damage and could destroy your business.
The recruitment and selection is the major function of the human resource department and recruitment
process is the first step towards creating the competitive strength and the recruitment strategic
advantage for the organization. The key here is start as you mean to go on. Your initial meeting of a
potential employee is your golden opportunity to assess if they are suitable for the job and if they are
the kind of person you are looking for to represent your business. Remember - your company is only
as good as its staff.

Paying staff is an expensive business, so before you advertise a vacancy, ask yourself if you really
need another pair of hands. Then look at the basics. What specific skills are you looking for? Do you
need the new staff member to be full-time? Or are you expanding in a new area, meaning you will
need a set of skills and experience perhaps not already existent in your business.

Once you have got a clear picture of the skills, experience and level of cover you need, draft a job
description to attract the desired candidate. First and foremost, include skills, knowledge and
experience. Highlight the general nature and objective of the job, along with main duties and tasks.
Also, give a job title and location where the job is based. This is known as Manpower Planning.
Today, in every organization personnel planning as an activity is necessary. It is an important part of
an organization. Human Resource Planning is a vital ingredient for the success of the organization in
the long run.

The essentials details for a new recruit could be as follows:

• Task analysis - Draw up a detailed list of tasks that the person will have to do. This helps in
determining the qualities and qualifications genuinely required for the job.
• Job description - Produce an outline of the broad responsibilities (rather than detailed tasks)
involved in the job.
• Person specification - Decide what skills, experience, qualifications and attributes someone
will need to do the job as defined in the task analysis and job description.

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 Human Resource Requisition Form (HRRF)

Position:
Reporting to:
Department:
Experience Level:
When the position is to be recruited:
Job Requirements:
Signature of the Department: Approved By:

Phase 2: Sources of Recruitment

How we will attract the candidates for your firm? This is another vital issue for any firm. The means of
acquiring the pool of candidates should be reliable and should incur minimum cost. Below are several
sources for attracting candidates. They could be classified as internal or external.

INTERNAL SOURCES OF RECRUITMENT

1. TRANSFERS
The employees are transferred from one department to another according to their efficiency
and experience.

2. PROMOTIONS
the employees are promoted from one department to another with more benefits and greater
responsibility based on efficiency and experience.

3. Others are Upgrading and Demotion of present employees according to their performance.

4. Retired and Retrenched employees may also be recruited once again in case of shortage of
qualified personnel or increase in load of work. Recruitment such people save time and costs of
the organizations as the people are already aware of the organizational culture and the policies
and procedures.

5. The dependents and relatives of Deceased employees and Disabled employees are also done by
many companies so that the members of the family do not become dependent on the mercy of
others.

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 EXTERNAL SOURCES OF RECRUITMENT

1. PRESS ADVERTISEMENTS: Advertisements of the vacancy in newspapers and journals are

a widely used source of recruitment. The main advantage of this method is that it has a wide
reach.

2. LABOUR CONTRACTORS: Manual workers can be recruited through contractors who

maintain close contacts with the sources of such workers. This source is used to recruit labor
for construction jobs.

3. EDUCATIONAL INSTITUTES: Various management institutes, engineering colleges,

medical Colleges etc. are a good source of recruiting well qualified executives, engineers,
medical staff etc. They provide facilities for campus interviews and placements. This source is
known as Campus Recruitment.

4. PLACEMENT AGENCIES: Several private consultancy firms perform recruitment functions

on behalf of client companies by charging a fee. These agencies are particularly suitable for
recruitment of executives and specialists. It is also known as RPO (Recruitment Process
Outsourcing)

5. EMPLOYMENT EXCHANGES: Government establishes public employment exchanges

throughout the country. These exchanges provide job information to job seekers and help
employers in identifying suitable candidates.

6. UNSOLICITED APPLICANTS: Many job seekers visit the office of well-known companies
on their own. Such callers are considered nuisance to the daily work routine of the enterprise.
But can help in creating the talent pool or the database of the probable candidates for the
organization.

7. EMPLOYEE REFERRALS / RECOMMENDATIONS: Many organizations have structured

system where the current employees of the organization can refer their friends and relatives for
some position in their organization. Also, the office bearers of trade unions are often aware of
the suitability of candidates. Management can inquire these leaders for suitable jobs. In some
organizations these are formal agreements to give priority in recruitment to the candidates
recommended by the trade union.

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Phase 3: Selection Process

Selection is defined as the process of differentiating between applicants in order to identify (and hire)
those with a greater likelihood of success in a job. Selection is basically picking an applicant from (a
pool of applicants) who has the appropriate qualification and competency to do the job.

Selection is a long process, commencing from the preliminary interview of the applicants and ending
with the contract of employment. Select your candidate being objective and unbiased. Choose the
person who best fits your person specification.

• Short listing / scrutiny: Review applications on the basis of the person specification. Ensure
that you select for interview those who match the specifications, regardless of age, sex, race
etc, and that the specifications are not themselves discriminatory. Scrutiny enables the HR
specialists to eliminate unqualified jobseekers based on the information supplied in their
application forms. Evaluation of a candidate is done because there should not be any bias
between the employer and the candidates. Evaluation can be done based on 3 parameters.
Attitude: Here we will see the Behavior, Etiquette/appearance, Positive attitude, mingling
nature of the candidate, and whether he is Argumentative or not.

Skills: Here we will see Communication and Presentation Skills, required Skill in that
Particular area, Technical Skill, etc.

Knowledge: Here we will see Job Knowledge, Subject/functional Knowledge. He is not

expected to do all the things but we will check whether he has the knowledge on that or not.

• Interviews: Interview your short-listed candidates remembering that your job is not only to
assess the best candidate for the job, but also to create a great impression of your organization.
Inform the candidates about the appropriate date and time of interview and how much time will
the interview take, and what would be the subsequent steps in recruitment process. Inform well
in advance to everyone who is required and responsible for the interview.

• Tests: Job seekers who pass the screening and the preliminary interview are called for tests.
Different types of tests may be administered, depending on the job and the company.
Generally, tests are used to determine the applicant’s ability, aptitude and personality.

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Phase 4: Follow Up

Follow up diligently with the technical people / supervisors for the feedback on the candidate. Ensure
to get written comments on the candidate and attach the same with the resume. If it is a final interview
and the candidate is selected, please don’t wait until you or the responsible person drafts an offer
letter. Brief the candidate informally about the feedback and subsequent offer. Try to get the nerve of
the candidate to better understand how keen he/she is to join your company. And in case if the
candidate is to be called for the next level of interview; try to schedule subsequent levels of interview
with as little gap of days as possible. Candidates lose out interest pretty fast because of the various
other opportunities available these days.

Phase 5: Salary Negotiations

Salary negotiation is most critical & crucial aspect of the entire hiring process. It is for sure requires
great attitude of diplomacy. This has to be learnt with all your diligence, as this is a most important for
both the candidate and the company. We have to negotiate the salary based on the company
compensation policy and have to attract the candidate showing the benefits he will get apart from the
salary with a min hike in his present salary.

Phase 6: Joining Formalities

Finally if the candidate is decided to be absorbed by the company, the joining formalities come into
picture. This includes processes from filling up of essential forms to induction and orientation where
the candidates selected are briefed about the company rules and policies and also introduced to their
team members. A candidate is usually kept on probation period which is 3 - 6 months period given to
the candidate to check whether the candidate can fulfill his job requirements or not. If the management
is not satisfied with his performance, then they can terminate the candidate. On the successful
completion of the probation period, the candidate receives appointment letter. Only if the candidate
receives the appointment letter, we can say it as End to End Recruitment Process.

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Q.1

What is job analysis? How can you make use of the information it provides?

Solution:

Job analysis is a systematic approach to defining the job role, description, requirements,
responsibilities, evaluation, etc. It helps in finding out required level of education, skills, knowledge,
training, etc for the job position. It also depicts the job worth i.e. measurable effectiveness of the job
and contribution of job to the organization. Thus, it effectively contributes to setting up the
compensation package for the job position.

An accurate job description, based on the careful analysis of the tasks performed, is essential not only
for the staffing process but for job evaluation and the full range of Human Resources functions.
Without job description as a guideline, interviewing job candidates would be difficult; selecting the
right person would be a gamble. Performance appraisals would be more guess work, evaluations for
promotions would be subject to personal rather than professional considerations and comparison
structure might be invalid.

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Job Position

Job position refers to the designation of the job and employee in the organization. Job position forms
an important part of the compensation strategy as it determines the level of the job in the organization.
For example management level employees receive greater pay scale than non-managerial employees.
The non-monetary benefits offered to two different levels in the organization also vary.

Job Description

Job description refers the requirements an organization looks for a particular job position. It states the
key skill requirements, the level of experience needed, level of education required, etc. It also
describes the roles and responsibilities attached with the job position. The roles and responsibilities are
key determinant factor in estimating the level of experience, education, skill, etc required for the job. It
also helps in benchmarking the performance standards.

Job Worth

Job Worth refers to estimating the job worthiness i.e. how much the job contributes to the
organization. It is also known as job evaluation. Job description is used to analyze the job worthiness.
It is also known as job evaluation. Roles and responsibilities helps in determining the outcome from
the job profile. Once it is determined that how much the job is worth, it becomes easy to define the
compensation strategy for the position.

In order to develop an effective system of job analysis the analyst must ensure that certain vital steps
are followed. They are:

a) Gain the support of management at higher and lower levels.

b) Make sure that the purpose of the activity is clearly communicated to the employees whose jobs
are to be analyzed.
c) Do the necessary organisational and background research. This information may be gathered from
statement of function or objectives of the organization.
d) Gather the necessary specific information about the jobs as they are analyzed and verify them.

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Basic consideration in Job analysis
a) The facts obtained and recorded must refer to the ‘Job’ and not the ‘Person’ employed in it.
b) The duties and responsibilities must reflect the content of the job as it exists now. Not how it has
existed in the past might exist in the future nor how it could exist under different circumstances.
c) The minimum requirements must be adequate to support satisfactory performance of such duties
and responsibilities by an average employee.
d) The Job Analyst must verify the facts and ensure that they are essential to the operation of the unit,
accurate, factual and realistic. The analyst’s role is to record them and not to reach conclusions
concerning them.
e) The duties of such job must be coordinated with the duties of other jobs, above and below, in the
organisational unit and with related and benchmark jobs in other parts of the organisation. Where
there is more than one incumbent in a job only one job analysis form is required.
f) Jobs of equal level of difficulty which are similar in nature should be combined wherever possible
under the same job title to provide uniformity and permit a greater degree of flexibility.
g) Where the job has more than one application such as Secretary or Clerk, it is advisable to obtain
details of the application in various units in order to ensure adequate coverage.

An ideal job analysis should include

Duties and Tasks: The basic unit of a job is the performance of specific tasks and duties. This
segment should include frequency, duration, effort, skill, complexity, equipment, standards, etc.
Environment: This segment identifies the working environment of a particular job. This may have a
significant impact on the physical requirements to be able to perform a job.
Tools and Equipment: Some duties and tasks are performed using specific equipment and tools.
These items need to be specified in a Job Analysis.
Relationships: The hierarchy of the organization must be clearly laid out. The employees should
know who is under them and who they have to report to.
Requirements: The knowledge, skills, and abilities required to perform the job should be clearly
listed.

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Importance of Job Analysis

Job analysis helps in analyzing the resources and establishing the strategies to accomplish the business
goals and strategic objectives. It forms the basis for demand-supply analysis, recruitments,
compensation management, and training need assessment and performance appraisal.

Therefore, job analysis forms an integral part in the formulation of compensation strategy of an
organization. Organizations should conduct the job analysis in a systematic at regular intervals. Job
analysis can be used for setting up the compensation packages, for reviewing employees’ performance
with the standard level of performance, determining the training needs for employees who are lacking
certain skills.

Training
Job Analysis can be used in training to identify or develop, training content, and assessment tests to
measure effectiveness of training, equipment to be used in delivering the training and methods of
training.

Compensation
Job Analysis can be used in compensation to identify or determine: skill levels, compensable job
factors, work environment, responsibilities and required level of education.

Selection procedures
Job Analysis can be used in selection procedures to identify or develop job duties that should be
included in advertisements of vacant positions, appropriate salary level for the position to help
determine what salary should be offered to a candidate, minimum requirements for screening
applicants, interview questions, selection tests/instruments (e.g., written tests; oral tests; job
simulations), applicant appraisal forms and orientation materials for new hires.

Performance review
Job Analysis can be used in performance review to identify or develop goals and objectives,
performance standards, evaluation criteria, length of probationary periods, and duties to be evaluated.

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 EXAMPLE OF JOB ANALYSIS FORM

PARTICIPANT________________ JOB TRAINER ______________________

COMPANY ___________________ CO. PH.ONE ________________________
ADDRESS ___________________ CONTACT__________________________
DATE JOB BEGINS ____________ SITE _______________________________
JOB TITLE_____________________ IMMEDIATE SUPERVISOR_____________
PROJECT YEAR _____________________________________

CORE WORK TASKS: EPISODIC WORK TASKS:

(Identified by employer) (Identified by employer)

JOB-RELATED TASKS: IMPORTANT CULTURAL ASPECTS:

(Identified during Job Negotiation) (Possible accommodations based on info in
Profile)

JOB DETAILS:
__________________________________________________________________________________
__________________________________________________________________________________

RATE OF PAY: ______ HOURS PER WEEK: _________ WORK DAYS: __________

BENEFITS: _________________________________________________________
HOLIDAYS/LEAVE TIME: _________ BREAKS/LUNCH: ____________________

WORK HOURS EACH DAY: ________ OVERTIME/WEEKEND: _____________________

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Q.3

Briefly explain the following theories of motivation:

• Maslow’s Model

• Herzberg’s Theory

• Theory X & Theory Y

Solution:

Before studying the theories, we shall 1st know what Motivation exactly means and how it can
transform an employee to work better and be more productive.

Motivation

One of the most important factors that lead one to their goals is the drive. This drive is known as
motivation. It is a zest and determination with a kind of excitement that leads one to persevere to reach
greater heights, in no matter what avenue of their life; be it – personal or professional. The drive may
come from an internal or external source. The individual determines this. The factors that motivate an
individual keep changing as one climbs the ladder of age and maturity. And also, achievement of one
goal sets the ball rolling for another one to be achieved. Thus, to be motivated is a constant need.

For every individual there is a variable driving force. In fact, it is not just a single factor, but a
combination of factors that lead people to achieve their goals. With every job these is one common
problem that people face, which is getting stuck in the machine of time and routine. This leads to
boredom, and is known to be a de-motivator by the experts. It feels like there is nothing new. Breaking
this cycle of monotony has helped many bounce back with enthusiasm. This is why human resource
managers create a training calendar, managers are asked to ensure that there are activities and varied
ways and means to keep employees motivated from time to time, as well as enhance their skills in
various areas. Others pursue hobbies during the weekend, thus giving them something to look forward
to, as each week comes to a close. There are people who redefine their goals and ambitions from time
to time in order to fill them with newer levels of enthusiasm to achieve greater heights.

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The level of performance is often tied with the level of motivation. Work effective managers are
concerned with motivation because the work of their employees directly affects their productivity and
quality of work. People differ in nature not only in their ability to perform a task but also their will to
do so. This “will” is known as motivation. By understanding an employee’s ability and motivation, a
manager can predict his performance level. Therefore it is simply termed as:

Ability * Motivation = Performance

This means that either of Ability or Motivation is zero, then the result in Performance is also Zero.

Now that we know what motivation is, let us have a look at the various theories given by experts who
give their view point and help managers study the levels of human motivation.

1. Maslow’s Model - Hierarchy of Needs Theory

Abraham Maslow developed the Hierarchy of Needs model in 1940-50's USA, and the Hierarchy of
Needs theory remains valid today for understanding human motivation, management training, and
personal development. Abraham Maslow looked to expand on Human Relations Theory. His argument
was that if motivation could be driven by managers filling their employees’ needs, then managers
should look to understand which of these needs are the most important. This motivation theory is
based on two assumptions:

• Human beings have many needs which vary in nature ranging from Biological needs at the
lower level which is the level of survival to the Psychological needs at the upper extreme
level which is the level of growth.

• The second assumption is that these needs are in the order of a hierarchy and the lower
needs must be satisfied before the higher level needs arise. In this hierarchy 1st three level
are Biological needs and the uppermost 2 levels are Psychological needs.

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The model is shown below.

Physiological Needs

Physiological needs are those required to sustain life, such as:

• Air
• Water
• Food
• Sleep

According to this theory, if these fundamental needs are not satisfied then one will surely be motivated
to satisfy them. It forms the foundation of the hierarchy and tends to have the highest strength in terms
of motivation. Higher needs such as social needs and esteem are not recognized until one satisfies the
needs basic to existence.

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Safety Needs

These are the needs for self preservation as against physiological needs which are for survival. They
are essentially the need to be free from the threat of physical danger or threat or even emotional harm.
Such needs might be fulfilled by:

• Living in a safe area

• Medical insurance
• Job security
• Financial reserves

It also includes freedom and a structured environment. According to the Maslow hierarchy, if a person
feels threatened, further needs in the pyramid will not receive attention until that need has been
resolved.

Love / Social Needs

After the needs of the body and security are taken care of, a sense of belonging and acceptance
becomes an important motivating behavior. “Man” by virtue is a “social animal”. He craves fro the
need for love, affection and social interaction. He looks fro an environment where he is known,
respected, understood and wanted. Social needs may include:

• Friendship
• Belonging to a group
• Giving and receiving love

Esteem Needs

After a person feels that they "belong", the urge to attain a degree of importance emerges. Esteem
needs can be categorized as external motivators and internal motivators. Internally motivating esteem
needs are those such as self-esteem, accomplishment, and self respect. External esteem needs are
those such as reputation and recognition.

Some examples of esteem needs are:

• Recognition (external motivator)

• Attention (external motivator)
• Social Status (external motivator)
• Accomplishment (internal motivator)
• Self-respect (internal motivator)

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Self-Actualization

Self-actualization is the summit of Maslow's motivation theory. It is about the quest of reaching one's
full potential as a person. Unlike lower level needs, this need is never fully satisfied; as one grows
psychologically there are always new opportunities to continue to grow.

Self-actualized people tend to have motivators such as:

• Truth
• Justice
• Wisdom
• Meaning

Self-actualized persons have frequent occurrences of peak experiences, which are energized moments
of profound happiness and harmony. According to Maslow, only a small percentage of the population
reaches the level of self-actualization.

Indeed, Maslow's ideas surrounding the Hierarchy of Needs concerning the responsibility of
employers to provide a workplace environment that encourages and enables employees to fulfill their
own unique potential (self-actualization) are today more relevant than ever. It is not enough for a
manager to simply pay their employees more, as pay eventually ceases to become a motivator once
people have enough money.

Limitation of the theory

The main limitation of Maslow’s theory is that different people will place different weightings on their
needs, and will have different relationships between motivating factors and their needs. For example,
some people may see money as merely fulfilling a security need, and will be happy to work to a
certain level of wages and achievement. In contrast, some people may see their earning power as a key
part of their self esteem, and will work harder and harder if they are given the opportunity for
increasing financial rewards. It is also difficult for a manager to determine what need is driving an
employee at any one time, particularly as employees’ needs will often be affected by external factors
such as their family life and social life outside of work. In addition, there is no empirical evidence to
support Maslow’s hierarchy as applying to all people, and there is evidence to support a different order
of needs in many circumstances. For example, people such as M K Gandhi and Mother Teresa
sacrificed some of their security to help others, hence achieving esteem and self actualization without
fulfilling their security needs.

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 2. Herzberg’s Dual Factor Theory - Motivation-Hygiene Theory

In an effort to better understand the factors which motivated employees, Frederick Herzberg
performed in dept interviews with employees looking to determine which aspects of their job they
liked, and which caused them displeasure. This study revealed that one set of factors caused job
satisfaction, while a different set of factors tended to cause job dissatisfaction.

These results led Herzberg to term the factors which could motivate employees as ‘motivators’ while
the factors which caused dissatisfaction if they were absent were referred to as ‘hygiene’ factors. As
such, Herzberg developed that Motivation-Hygiene theory, also known as the Two Factor theory, to
explain how managers could use these factors to motivate their employees.

Hygiene factors:

The word hygiene is taken from the medical field where it means taking steps to maintain your health,
but not necessarily improve it. Hygiene factors do not motivate people. They simply prevent
dissatisfaction. They produce no growth but prevent loss. The absence of these factors leads to job
dissatisfaction. But elimination of dissatisfaction does not mean satisfaction. These factors simply
maintain a zero level of motivation. Providing them doesn’t motivate employees to work harder,
except perhaps for a short period of time, after which they are taken for granted and people want new
improvements. Some of the factors are:

• Company policies
• Quality of supervision
• Employee’s relationship with their boss
• General working conditions
• Salary, wages and other employee benefits
• Employee’s relationship with their peers

Motivational factors:

These factors are related to the nature of work. The factors have a positive influence on morale,
satisfaction, efficiency and higher productivity. Being given extra responsibility and career
advancement are also motivation factors in Herzberg’s theory.

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Presumably these factors motivate employees to work harder because they can see a direct connection
between their efforts and an outcome that they feel is worth striving for. Hygiene factors, say a bigger
office, that are provided if an employee achieves a certain target or performance level, would then
become motivation factors because getting them is a direct result of the employee’s efforts.

Some of the factors are:

• Potential for achievement

• Receiving recognition
• The work itself
• Being given responsibility
• The potential for advancement & growth

Herzberg's dual factor theory is tied to Maslow’s hierarchy of need theory. Let us see how.
• Maslow’s theory is helpful in identifying the needs and Herzberg's provides us with
directions that tend to satisfy these needs.

• Hygiene factors of Herzberg satisfy 1st three Biological levels of Maslow’s theory and the
motivational factors satisfy the Psychological levels.

The continuing relevance of Herzberg is the fact that there must be some direct connection between
performance and reward, whether extrinsic as in recognition or intrinsic as in naturally enjoyable
work, to motivate employees to work harder and to improve their job satisfaction. So, if you are
thinking creatively about how to recognize employees, make sure that whatever you offer is directly
dependent on the output you want to achieve.

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 3. Theory X & Theory Y

Douglas McGregor in his book, "The Human Side of Enterprise" published in 1960 has examined
theories on behavior of individuals at work, and he has formulated two models which he calls Theory
X and Theory Y.

Theory X Assumptions

The average human being has an inherent dislike of work and will avoid it if he can.

• Because of their dislike for work, most people must be controlled and threatened before they
will work hard enough.
• The average human prefers to be directed, dislikes responsibility, is unambiguous, and desires
security above everything.
• These assumptions lie behind most organizational principles today, and give rise both to
"tough" management with punishments and tight controls, and "soft" management which aims
at harmony at work.
• Both these are "wrong" because man needs more than financial rewards at work; he also needs
some deeper higher order motivation - the opportunity to fulfill himself.
• Theory X managers do not give their staff this opportunity so that the employees behave in the
expected fashion.

Theory Y Assumptions

• The expenditure of physical and mental effort in work is as natural as play or rest.
• Control and punishment are not the only ways to make people work, man will direct himself if
he is committed to the aims of the organization.
• If a job is satisfying, then the result will be commitment to the organization.
• The average man learns, under proper conditions, not only to accept but to seek responsibility.
• Imagination, creativity, and ingenuity can be used to solve work problems by a large number of
employees.
• Under the conditions of modern industrial life, the intellectual potentialities of the average man
are only partially utilized.

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Comments on Theory X and Theory Y Assumptions

These assumptions are based on social science research which has been carried out, and demonstrate
the potential which is present in man and which organizations should recognize in order to become
more effective.

McGregor sees these two theories as two quite separate attitudes. Theory Y is difficult to put into
practice on the shop floor in large mass production operations, but it can be used initially in the
managing of managers and professionals. In "The Human Side of Enterprise" McGregor shows how
Theory Y affects the management of promotions and salaries and the development of effective
managers. Mc Gregor also sees Theory Y as conducive to participative problem solving.

It is part of the manager's job to exercise authority, and there are cases in which this is the only method
of achieving the desired results because subordinates do not agree that the ends are desirable.
However, in situations where it is possible to obtain commitment to objectives, it is better to explain
the matter fully so that employees grasp the purpose of an action. They will then exert self-direction
and control to do better work - quite possibly by better methods - than if they had simply been carrying
out an order which the y did not fully understand.

The situation in which employees can be consulted is one where the individuals are emotionally
mature, and positively motivated towards their work; where the work is sufficiently responsible to
allow for flexibility and where the employee can see her or his own position in the management
hierarchy. If these conditions are present, managers will find that the participative approach to problem
solving leads to much improved results compared with the alternative approach of handing out
authoritarian orders. Once management becomes persuaded that it is under estimating the potential of
its human resources, and accepts the knowledge given by social science researchers and displayed in
Theory Y assumptions, then it can invest time, money and effort in developing improved applications
of the theory.

McGregor realizes that some of the theories he has put forward are unrealizable in practice, but wants
managers to put into operation the basic assumption that staff will contribute more to the organization
if they are treated as responsible and valued employees.

20 | Human Resources – ACL II Weekly Assignment

Prachi Bukkam