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Unit IV: Leadership and Motivation

Leadership: Importance, functions and Styles of Leadership


Motivation: Importance, Major motivation theories: Maslow’s Need Hierarchy Theory,
Hertzberg’s Two-factor Theory and McGregor’s Theory.

Leader
A leader is the one in the charge, the person who convinces other people to follow. A great
leader inspires confidence in other people and moves them to action.
A leader is someone who inspires passion and motivation in followers.
A leader is someone with a vision and the path to realizing it.
A leader is someone who ensures their team has support and tools to achieve their goals.

A leader is someone who has the capacity to create a compelling vision that takes people to a
new place, and to translate that vision into action. Leaders draw other people to them by
enrolling them in their vision. What a leader does is inspire people and empower them. Thus, a
leader is a person who has a vision, a drive and a commitment to achieve that vision, and the
skills to make it happen.

Definition of a Leader

According to john C maxwell, “A leader is one who knows the way, goes the way, and shows
the way”.

A leader is "a person who influences a group of people towards the achievement of a goal". A
mnemonic for this definition would be 3P's - Person, People and Purpose as illustrated by the
following diagram.
LEADERSHIP:
Leadership is an activity on the part of the managers to get something done by others, willingly
and not by compulsion. Leadership is a process of influence on a group. Leadership is the ability
of a manager to induce subordinates to work with confidence.

Define leadership.
According to Allen: "Leadership is the activity to persuade people to coordinate and co-operate
in the achievement of a common objective."
According to La-Plere: "Leadership is a behaviour that effects the behaviour of other people,
than their behaviour affects that of the leader." Mazumdar: "The leadership is one who has
authority and power."
According to George Terry: "The activity of influencing people to strive willingly for group
objective."

IMPORTANCE OF LEADERSHIP

Without a good leader, organization cannot function efficiently and effectively. The leader
guides the action of others in accomplishing the organizational goals. A good leader motivates
his subordinates, creates confidence and increases the morale of workers. The importance of
leadership can be discussed as follows

1. Accountability:
Effective leaders take responsibility for their decisions and actions. They set an example for
accountability, which encourages the same behavior from their team members. When everyone is
accountable, it fosters a sense of responsibility and ownership within the organization.
2. To motivate
An effective leader motivates the subordinates for higher level performance. Effective leaders
inspire and motivate their teams. They understand the individual and collective needs of their
team members and use various strategies to encourage them to perform at their best. Motivated
employees are more likely to be productive and committed to their work.
3. To have team work:
Leadership promotes team spirit and team work which is quite essential for the success of any
organization. A leader is responsible for building and maintaining a strong, cohesive team. This
involves understanding the strengths and weaknesses of team members, fostering collaboration,
and creating a positive work environment. A well-functioning team is more likely to achieve its
goals and overcome challenges.
4. Innovation:
Leaders play a crucial role in fostering a culture of innovation. They encourage creativity,
experimentation, and the pursuit of new ideas. A leader who promotes innovation helps the
organization stay competitive and adapt to evolving market conditions.
5. To guide:
Leadership creates confidence in the subordinates by giving them proper guidance and advice.
Leaders provide a clear vision and direction for the organization. They set goals, define
objectives, and create a roadmap for the entire team. This guidance helps employees understand
their roles and how their efforts contribute to the overall success of the organization.

FUNCTIONS AND
1. Defining the task: Leader should beclear of what task, he and its team want to achieve. Task
means the work to done and this task should be clear, concrete, time bound, realistic, challenging
and capable for evaluation.
2. Planning for the task: It includesdoing a mental thinking of what to do (or) achieve in future.
So, a leader plans what to achieve, set standard for achieving and influence his followers to
execute the planning.
3. Briefing: Here leader will establisha clear organisational vision for future.
4. Controlling: The leader will alsomonitor the progress of plan by the executives. control
means that the leader will watch carefully the plans are not going out from the established
procedures and direction.
5. Evaluating: The final results whichobtained after the implementation and execution of plans
should be evaluated by the leader. Evaluation is comparing the results with the task which is
planned before. Evaluation may be positive, negative or neutral.
6. Motivation: All the above saidfunctions can be performed well only when the employees are
motivated throughout the project. A leader performs this with the help of key called motivation.
Motivation word comes from a Latin word “TO MOVE”. So, the leader motivates their
employees either by rewards or by threats.

STYLES OF LEADERSHIP
1. Based on authority retained:

The following are main types of leadership styles:


(1) Autocratic Leadership Style
This style is also known as the leader-centred style.Under this style, the leader keeps all the
authority centred in his hands and theemployees have to perform the work exactly as per his
orders. If any employee iscareless in his work performance, he is punished. The authoritarian
leadershipstyle or autocratic leader keeps strict, close control over followers by keeping
closeregulation of policies and procedures given to followers. To keep main emphasis onthe
distinction of the authoritarian leader and their followers, these types of leadersmake sure to only
create a distinct professional relationship. Direct supervision is whatthey believe to be key in
maintaining a successful environment and follower ship. Infear of followers being unproductive,
authoritarian leaders keep close supervision andfeel this is necessary in order for anything to be
done. Authoritarian leadership stylesoften follow the vision of those that are in control, and may
not necessarily becompatible with those that are being led. Authoritarian leaders have a focus
onefficiency, as other styles, such as a democratic style, may be seen as a hindrance onprogress.

(2) Paternalistic Leadership Style


The way a Paternalistic leader works is by acting as a father figure by taking care of their
subordinates as a parent would. In this style of leadership the leader supplies complete concern
for his followers or workers. In return he receives the complete trust and loyalty of his people.
Workers under this style of leader are expected to become totally committed to what the leader
believes and will not strive off and work independently. The relationship between these co-
workers and leader are extremely solid. The workers are expected to stay with a company for a
longer period of time because of the loyalty and trust. Not only do they treat each other like
family inside the work force, but outside too. These workers are able to go to each other with any
problems they have regarding something because they believe in what they say is going to truly
help them. One of the downsides to a paternalistic leader is that the leader could start to play
favourites in decisions. This leader would include the workers more apt to follow and start to
exclude the ones who were less loyal. In today’s market paternalism is more difficult to come by
according to Padavic and Earnest who wrote “business dimensional and Organizational
Counselling.” They believe this because there have become more lay-offs and stronger
unionization. This affects paternalistic leaders because the co-workers may not believe that their
jobs are 100% ensured. When this happens, workers begin to look for bigger and better job
opportunities instead of staying at one company for a longer period of time. Because of this, the
leader may be thinking that you could be leaving and not fully believe you when you tell them
something about a job opportunity. This could put the workers and leader at risk for a bad
situation. According to B. M. Bass who wrote Leadership and Performance beyond Expectations,
workers who follow paternalistic leadership also have better organization skills. The leader
encourages organization because they allow the workers to complete tasks so that they can stay
on top of their work. The workers complete tasks this boosts self-confidence and it makes them
work harder to reach a goal and exceed the goal to prove to their boss they are working hard.
Having this style of leadership can also help implement a reward system. This system will allow
their workers to work even better because there is something for them at the end of the tunnel.
While doing this they will also be able to accomplish more work in a set time frame.
(3) Democratic Leadership Style
This style is also known as group-centred leadership style. These days this leadership style is
very much in vogue. Under this style, decisions regarding different works are not taken by the
manager alone but they are taken in consultation with the employees. This leadership style is
based on decentralisation. The manager respects the suggestions made by his subordinates, and
also makes efforts to fulfil their necessities. This style of leadership encompasses discussion,
debate and sharing of ideas and encouragement of people to feel good about their involvement.
The boundaries of democratic participation tend to be circumscribed by the organization or the
group needs and the instrumental value of people's attributes (skills, attitudes, etc.). However, the
democratic style of leadership still requires guidance and control by a specific leader. The
democratic style demands the leader to make decisions on who should be called upon within the
group and who is given the right to participate in, make and vote on decisions.
Traits of a Good Leader compiled by the Santa Clara University and the Tom Peters Group:
 Honest - Display sincerity, integrity, and candor in all your actions. Deceptive behaviour will
not inspire trust.
 Competent - Base your actions on reason and moral principles. Do not make decisions based
on childlike emotional desires or feelings.
 Forward-looking - Set goals and have a vision of the future. The vision must be owned
throughout the organization. Effective leaders envision what they want and how to get it. They
habitually pick priorities stemming from their basic values.
 Inspiring - Display confidence in all that you do. By showing endurance in mental, physical,
and spiritual stamina, you will inspire others to reach for new heights. Take charge when
necessary.
 Intelligent - Read, study, and seek challenging assignments.
 Fair-minded - Show fair treatment to all people. Prejudice is the enemy of justice. Display
empathy by being sensitive to the feelings, values, interests, and well- being of others.
 Broad-minded - Seek out diversity.
 Courageous - Have the perseverance to accomplish a goal, regardless of the seemingly
insurmountable obstacles. Display a confident calmness when under stress.
 Straightforward - Use sound judgment to make a good decision at the right time.
 Imaginative - Make timely and appropriate changes in your thinking, plans, and methods.
Show creativity by thinking of new and better goals, ideas, and solutions to problems. Be
innovative.
Research has found that this leadership style is one of the most effective and creates higher
productivity, better contributions from group members and increased group morale. Democratic
leadership can lead to better ideas and more creative solutions to problems because group
members are encouraged to share their thoughts and ideas. While democratic leadership is one of
the most effective leadership styles, it does have some potential downsides. In situations where
roles are unclear or time is of the essence, democratic leadership can lead to communication
failures and uncompleted projects. Democratic leadership works best in situations where group
members are skilled and eager to share their knowledge. It is also important to have plenty of
time to allow people to contribute, develop a plan and then vote on the best course of action.

(4) Laissez-faire Leadership Style


This leadership style is also described as Individual- centred style. In this style, the manager or the leader takes little
interest in managerial functions and the subordinates are left on their own. It refers to that leadership style in which
the leader gives his subordinates complete freedom to make decisions. The laissez-faire leadership style is where all
the rights and power to make decisions is fully given to the worker. This was first described by Lewin, Lippitt, and
White in 1938, along with the autocratic leadership and the democratic leadership styles. The laissez-faire style is
sometimes described as a "hands off" leadership style because the leader delegates the tasks to their followers while
providing little or no direction to the follow. If the leader withdraws too much from their followers it can sometimes
result in a lack of productivity, cohesiveness, and satisfaction.
Laissez-faire leaders allow followers to have complete freedom to make decisions concerning the completion of
their work. It allows followers a high degree of autonomy and self-rule, while at the same time offering guidance
and support when requested. The laissez-faire leader using guided freedom provides the followers with all materials
necessary to accomplish their goals, but does not directly participate in decision making unless the followers request
their assistance.
This is an effective style to use when:
 Followers are highly skilled, experienced, and educated.
 Followers have pride in their work and the drive to do it successfully on their own.
 Outside experts, such as staff specialists or consultants are being used.
 Followers are trustworthy and experienced.
This style should NOT be used when:
 Followers feel insecure at the unavailability of a leader.
 The leader cannot or will not provide regular feedback to their followers

2. Based on task versus people emphasis

3. Based on assumptions about people


4. Likert’s four styles
 Exploitative-Authoritative
Decision-making takes place at the top of the organization and these decisions are imposed on
others without consultation.There is little sense of teamwork and not much communication,
other than threats, which form the primary means of driving performance (motivation).
Consequently, it is only upper management who feel any sense of responsibility for the
organization’s goals.
 Benevolent-Authoritative
This is a patriarchal, patronizing system based on a master-servant relationship between
management and employees. Rewards are the motivators and teamwork, communication, and a
sense of ownership of the organization’s goals are still minimal.
 Consultative
In this style, managers trust subordinates but not wholly. They motivate with both rewards and
involvement, and expect a higher level of responsibility for meeting goals. There is a moderate
amount of teamwork and some communication across and between levels.
 Participative
Participative management is based on trust and confidence in employees. Goals are determined
collectively and form a basis for motivation and rewards. This fosters a collective sense of
responsibility for meeting company goals, and incentivizes collaborative teamwork and open
communication.

5. Entrepreneurship leader styles.


 A heavy task orientation combined with a very direct-approach to giving instructions to
employees.
 A charismatic personality that inspires others to do business with him.
 A much stronger interest in dealing with customers than employees.
 A strong dislike for bureaucratic rules and regulations.
 Anxiety to consolidate business gains as quickly as possible.

MOTIVATION:
The performance of employees depends mainly on their
 Ability to perform and
 Willingness to perform
Ability is functions of education and training
Willingness to perform depends upon the level of motivation
Thus, Performance = Ability X Motivation.
Motivation is a Latin word which means ‗to move ‘. Human motives are internalized
goals within individuals. Motivation may be defined as those forces that cause people to behave
in certain ways.Motivation is derived from the word motive, which means a need with required
satisfaction.
Meaning:

Motivation is the process of channelling a person‘s inner drives so that he wants to accomplish
the goals of the organization. Motivation concerns itself with the will to work. It seeks to know
the incentives for the work and tries to find out the ways and means whereby their realization can
be helped and encouraged.
This motivation is of two types.
If the motivation has been done or happened by another person or a third party, it is
known as extrinsic motivation. Because it happened with the help of outside forces. On
the other hand, if the motivation is done from the inside of the mind or soul and one gets
motivated by themselves, it is called intrinsic motivation.

Definition
According to Louis Allen, “motivation is the work of a manager performs to inspire, encourage
and impel people to take required action”

In the words of William G Scott, “motivation means a process of stimulating people to action to
accomplish desired goals”

IMPORTANCE,
 Improves Performance Level: - The motivation provided in the organisation gives
a special spirit and energy to work more. Also, they get satisfied with the proper
appraisal of the work they have done. All these factors will improve the
performance level of an employee.
 Productive Utility of Resources: - another outcome that explains the importance of
motivation is the productive utilisation of resources. If the motivation is good in the
organisational environment, the relationship will be smooth. Then everyone can
share their strengths and weaknesses. This results in making use of all the resources
optimally.
 Increased Efficiency and Output: - One of the best advantages of employee
motivation to the firm is the increase in the level of efficiency and output. As the
resources are utilised optimally, the output may get increased than before. As
already all the employees are working in satisfying conditions, they put their
maximum efforts to give maximum efficiency.
 Achievement of Goals: - All the advantages of employee motivation to the
company are interrelated. If the efficiency and output were increased, this is what
achieves the goal of an organisation. The primary purpose of each organisation is to
provide an effective output that earns a high income in return.
 Combines Ability with Willingness: - Work or a task can be achieved in two ways.
One is the ability, and the other one is the willingness to do. If both qualities were
merged due to the importance of inspiration, the effectiveness of output would be
infinite.

MAJOR MOTIVATION THEORIES:

There are many internal and external variables that affect the motivation to work. Behavioural
scientists started to search new facts and techniques for motivation. These are called as
motivation theories. The most important theories are
1. Maslow‘s Need Hierarchy Theory
2. Herzberg‘s Two Factor Theory and
3. McGregor‘s Theory X and Theory Y

1. MASLOW’S NEED HIERARCHY THEORY

Abraham Harold Maslow, an eminent US psychologist, gave a general theory of motivation


known as Need Hierarchy Theory in 1943. According to him, there seems to be a hierarchy into
which human needs are arranged. The needs are as follows

1. Physiological Needs – these needs are related to the survival and maintenance of life. These
include hunger, thirst, shelter, sex and other bodily needs. (or)these are biological requirements
forHuman survival, e.g. air, food, drink, shelter, clothing, warmth, sex,sleep.If these needs are
not satisfied the human body cannot functionoptimally. Maslow considered physiological needs
the most importantas all the other needs become secondary until these needs are met
2. Safety or Security Needs – These consist of physical safety against murder, fire accident,
security against unemployment etc. (or) protection from elements, security, order, law,stability,
freedom from fear.
3. Social or Love Needs – these needs are also called as affiliation needs. These consist of need
for love, affection, belonging or association with family, friends and other social groups. (or)
after physiological and safetyneeds have been fulfilled, the third level of human needs is social
andinvolves feelings of belongingness. The need for interpersonalrelationships motivates
behavior
Examples include friendship, intimacy, trust, and acceptance, receivingand giving affection and
love. Affiliating, being part of a group (family,friends, work).
4. Esteem or Ego Needs – The esteem needs are concerned with self-respect, self-confidence,
feeling of personal worth, feeling of being unique and recognition. Satisfaction of these needs
produces feeling of self-confidence, prestige, power and control. which Maslow classified into
two categories: (i)esteem for oneself (dignity, achievement, mastery, independence) and(ii) the
desire for reputation or respect from others (e.g., status,prestige).Maslow indicated that the need
for respect or reputation is mostimportant for children and adolescents and precedes real self-
esteem ordignity.
5. Self-Actualization or Self Fulfillment Needs – Self-actualization is the need to maximize one
‘s potential, whatever it may be. It is the need to fulfill what a person considers to be his real
mission in life. It helps in individual to realize one ‘s potentialities to the maximum. (or)
realizing personal potential, self-fulfillment, seeking personal growth and peak experiences. A
desire “tobecome everything one is capable of becoming”

2. HERZBERG’S TWO-FACTOR THEORY


The motivation – hygiene theory was proposed by Fredrick Herzberg, a well known psychologist, in 1959.
According to Herzberg, there are two separate factors that influence motivation. They are
(i) hygiene or maintenance factors and
(ii) motivational factors.
Hygiene Factors –
Hygiene factors are those which decrease job dissatisfaction. Herzberg, Mausner, and
Snyderman used the term hygiene as “medical hygiene…[which] operates to remove health
hazards from the environment”
Herzberg also states that hygiene factors are extrinsic to the job and function in “the need to
avoid unpleasantness” (Herzberg, 1966).
Hygiene factors, rather than relating to the content of the job in itself, tend to relate to contextual
factors such as interpersonal relations, salary, company policies, and administration, relationship
with supervisors, and working conditions:
1. Interpersonal relations: Interpersonal relationships involve the personal and working
relationships between an employee and his supervisors, subordinates, and peers.
This can manifest in, for example, job-related interactions as well as social discussions in
both the work environment and during informal break times.
2. Salary: Salary includes wage or salary increases and negative unfulfilled expectations of
wage or salary increases.
3. Company policies and administration: Company policies and administration include
factors such as the extent to which company organization and management policies and
guidelines are clear or unclear.
For example, a lack of delegation of authority, vague policies and procedures, and
communication may lead to job dissatisfaction (Alshmemri et al., 2017).
4. Supervision: Supervision involves an employee’s judgments of the competence or
incompetence and fairness or unfairness of the supervisor or supervision.
For example, this could include a supervisor’s willingness to delegate responsibility or
teach and their knowledge of the job.
Poor leadership and management can decrease job dissatisfaction (Alshmemri et al.,
2017).
5. Working conditions: Finally, working conditions involve the physical surroundings of
the job and whether or not they are good or poor.
Motivation Factors –
Herzberg et al. (1959) argue that motivation factors are necessary to improve job satisfaction.
According to Herzberg, these motivators are intrinsic to the job and lead to job satisfaction
because they satisfy the needs for growth and self-actualization (Herzberg, 1966).
In his original paper, Herzberg examines 14 motivational and hygiene factors, of which there are
notable examples:
1. Advancement: Herzberg defined advancement as the upward and positive status or
position of someone in a workplace.
Meanwhile, a negative or neutral status at work represents negative advancement
(Alshmemri et al., 2017, 2017).
2. The work itself: The content of job tasks can positively or negatively affect employees.
The job’s difficulty and level of engagement can dramatically impact satisfaction or
dissatisfaction in the workplace (Alshmemri et al., 2017, 2017).
3. Possibility for growth: Possibilities for growth exist in the same vein as Maslow’s self-
actualization; they are opportunities for a person to experience personal growth and
promotion in the workplace.
Personal growth can result in professional growth, increased opportunities to develop
new skills and techniques, and gaining professional knowledge.
4. Responsibility: Responsibility encompasses both the responsibilities held by the
individual and the authority granted to the individual in their role.
People gain satisfaction from being given the responsibility and authority to make
decisions. Conversely, a mismatch between responsibility and level of authority
negatively affects job satisfaction.
5. Recognition: When employees receive praise or rewards for reaching goals or producing
high-quality work, they receive recognition.
6. Achievement: Positive achievement can involve, for example, completing a difficult task
on time, solving a job-related problem, or seeing positive results from one’s work.

3. MCGREGOR’S THEORY.
In the year 1960, Douglas McGregor, a management professor at the Massachusetts Institute of
Technology, proposed two theories based on the hypothesis related to human behaviour in his
book The Human Side of Enterprise. He believed that while motivating people, there are
certain assumptions about human nature that should be taken into consideration. According to
McGregor, there are two aspects of human behaviour at work which he described as Theory X
(negative aspect) and Theory Y (positive aspect).
Theory X

According to McGregor, Theory X is based on the following assumptions:


 The average human being will avoid work whenever it is possible because of their
inherent dislike of work.
 Most of the people are gullible and not very intelligent.
 Most people by nature, always resist change and have security as their priority.
 An average person doesn’t like responsibility, lacks ambition, and prefers to be directed
by others.
 Lastly, an average human being is self-centred and indifferent to organisational goals.
Simply put, Theory X assumed that the basic source of an employee’s motivation is money after
which he prefers security.
Based on these assumptions, the following proposition is put together:
1. It is the responsibility of the management to organise the elements of a productive enterprise
(money, equipment, material, and people) in the interest of economic gain.
2. While talking about human beings, management includes directing the efforts of people,
motivating them, controlling their actions, and modifying their actions and behaviour based on
the organisational needs.
3. It is essential for the management to reward, persuade, punish, and control people. It is
because, without their active intervention, these people would become passive and even resist the
organisational needs.
4. As it is assumed in this theory that people dislike work, it is necessary to coerce, control,
direct, and threaten them with punishment to get things done from them for the accomplishment
of the organisational goals.
As the above-mentioned assumptions are negative in nature, it can be said that Theory X
developed by McGregor is a traditional or conventional approach to motivation. The
management feels external control is more appropriate to deal with irresponsible, unreliable, and
immature people. McGregor believes that an organisation that closely supervises and controls its
subordinates, and has highly centralised authority is one which is built upon the notions of
Theory X. Besides, in these kinds of organisations there is autocratic leadership, and the
employees, if any, will have very less say in the decisions affecting them. The management
motivates people by promising them greater pay and through the threat of punishment. Simply
put, an organisation following Theory X will have an impersonal climate as it uses carrot and
stick approach to motivation.
Theory Y
The assumptions on which Theory X was formulated had some faulty misconceptions about
human nature. McGregor realised that there are some needs that were not considered in Theory
X, such as ego satisfaction, social needs, and self-fulfilment of individual workers. Therefore, to
meet these left-out needs, McGregor developed a counter approach, known as Theory Y, which
proposes that:
1. It is the responsibility of the management to organise the elements of a productive enterprise
in the interest of social as well as economic gains.
2. The theory also states that people are not passive or restricted to the needs of the organisation
by nature. Their nature changes to this because of experience.
3. Characteristics like readiness to direct behaviour towards the organisational goals, motivation,
potential for development, etc., are already present in the people. The management has to just
make it possible for these people to recognise these characteristics in themselves.
4. Besides, it is important for the management to arrange the condition and methods of
operations of the organisation so that the employees can achieve their personal goals by directing
their efforts towards the goals of the organisation.
The assumptions on which Theory Y is based are as follows:
 First of all, it is assumed that if the working conditions are favourable, then it can be as
natural as play and rest. Average human being has no inherent dislike towards work. If
the work is meaningful to a person, then it can be a source of satisfaction and there is a
high possibility that it is performed voluntarily.
 If an individual is committed to work, then he/she will exercise self-control and self-
direction to accomplish the work and organisational objectives. In simple terms, the
threat of punishment or external control is not the only means of motivating an individual
to complete the work and accomplish organisational goals.
 Besides, if an objective is associated with some reward, then the employee will have a
high commitment toward the accomplishment of those objectives. For example, a person
will be more committed to an organisational objective or work which accomplishes his
self-development needs and satisfies his ego. Also, once an individual has selected his
goal, he will continue with the work without any control or close supervision.
 If an average human being gets proper working conditions, then they will not step back
from their responsibility. They will not only take the responsibility but will also work
towards fulfilling it. Simply put, lack of ambition, avoidance of responsibility, and
emphasis on security arise because of experience, not because of an individual’s inherent
dislike of work.
 It also assumed that imagination, creativity, and ingenuity are found in high amounts in
human beings.
 People have unlimited potential but, under modern industrial life conditions, their
intellectual potential is not fully utilised.
With the above explanation and assumptions, it can be seen that the modern and dynamic nature
of human beings is represented through Theory Y. This theory is based on assumptions that are
closer to reality. An organisation following Theory Y has decentralised authority, a two-way
communication system, job enrichment, and participative leadership. The theory focuses on
responsible jobs and self-control. With the help of the assumptions of Theory Y, there can be a
more cooperative relationship between the workers and their managers. In simple terms, with
Theory Y, the management of an organisation tries to establish a working environment in which
an individual’s personal needs and goals can relate to the organisational goals.

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