Organizational Behavior TheoryOrganizational behavior is a multi-disciplined theory which draws on many domains which contribute to the efficiency and effectiveness of the organization. If one had to study the organizational behavior of a company, they would have effectively studied the Economics, Psychology, Sociology of the organization. The aspect of people behavior on systems is also studied using the system based theory. In such a scenario, it is extremely important to know and understand an Organizational Behavior theory. Understanding the theory would be the first step to implementing organizational behavior principles to an organization. While some organizations follow the systems based theory, some take the classical approach to organizational behavior. The systems based theory works on the principle that every organization is like a system defined by boundaries, inputs and outputs where each aspect plays an equally critical part in the development of the organization. The classical approach to organization behavior taps on the concept of one exercising power on the basis of knowledge. This gave rise to three mechanisms of classical organizational behavior - Charismatic Authority, Traditional Authority, Rational Legal Authority. What is Theory X and Theory Y of Organizational Behavior? Douglas McGregor at the MIT Sloan School of management developed a set of theories in 1960 which have gone on to become the fundamentals of organizational behavior. Known as Theory X and Theory Y, they are extensively used in human resources, organizational behavior and developing the organization. Theory X assumes that employees are immature towards their job roles and may require micro-management from their managers. This theory is a close subset of directive leadership which is also characterized by motivating the employees with incentives for the good work that has been done. Managers adopting the Theory X for Organizational Behavior almost invariably end up blaming some one without trying to find out more about the fault or the mistake that happened. Theory Y advocates associative leadership for the employees. It assumes that employees are self motivated and will do their jobs with greater care and responsibility. Managers adopting Theory Y will ensure that employees derive satisfaction in the jobs that they are doing which further results in developing a good creative workforce within the organization. There have been critics of both the theories. That not withstanding, I can say this safely that either of them will be very helpful for organizations to integrate their OB principles. Though the McGregor's model assumes two relative extremes of organizations, they are extremely useful for organizations to tackle the extremes. After all, companies must remember one thing - It is the easy issues which can be handled relatively easy, but for complex issues you need to break a lot of sweat. |