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THEORY X
In this theory management assumes Employees are inherently lazy Will avoid work if they can Inherently dislike work. As a result of this, management believes that workers need to be closely supervised and comprehensive systems of controls developed. According to this theory, employees will show little ambition without an incentive program and will avoid responsibility whenever they can.
THEORY Y
In this theory, management assumes Employees may be ambitious and self motivated Employees enjoy their mental and physical work duties. According to them work is as natural as play. They possess the ability for creative problem solving, but their talents are underused in most organizations. A s a result Theory Y manager believes that, given the right conditions, most people will want to do well at work. They believe that the satisfaction of doing a good job is a strong motivation.
THEORY Z
Theory Z stresses the importance of a caring and benevolent relationship between managers and workers It presumes that workers will get motivated by a strong social relationship with the company. Loyalty to the company will increase by providing a job for life, in which the company takes genuine interest in the well being of the employee.
In 1960s, Edwin Locke put forward the Goal setting theory of motivation. It states that goals indicate and give direction to an employee about what needs to be done and how much efforts are required to be put in. The willingness to work towards attainment of goal is main source of job motivation. Specific and clear goals lead to greater output and better performance.
An individuals motivation level is correlated to his perception of equity, fairness and justice practiced by the management. o Higher is individuals perception of fairness, greater is the motivation level and vice versa o While evaluating fairness, employee compares the job input in terms of contribution to outcome in terms of compensation and also compares the same with that of another peer of equal cadre, grade or category.
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