Laurea University - Business Management: Company X Management Style

This essay analyzes the management style of Company X, a leading bank in Southern Africa, focusing on its adherence to McGregor's Theory X. The analysis reveals a hierarchical structure with top-down control, limiting employee participation and recognition, which negatively impacts morale. The essay examines the company's vision and mission, suggesting improvements to emphasize customer and employee satisfaction through increased employee empowerment and recognition. It proposes interventions to address employee laziness, advocating for improved communication, motivation, and opportunities for employee input, aligning with Theory Y principles. The study references relevant literature to support its arguments, highlighting the importance of employee engagement and its impact on service quality and customer satisfaction.

Running head: MANAGEMENT STYLE OF COMPANY X
MANAGEMENT STYLE OF COMPANY X
Name of Student
Name of University
Author Note

1MANAGEMENT STYLE OF COMPANY X
In Response to Question 1:
In company X the management, approach has followed the style much like elaborated
in McGregor’s Theory X which states that people dislike to take any responsibility, they
requires to be pushed, controlled and directed towards achieving certain goals (Arslan, &
Staub, 2013). The peoples are with little aspirations and are reluctant to changes. At
company X, also the strong control of the top management is maintained. The organization
has established a hierarchical structure, which is divided according to the order from the top
management body to the lower level clerical and non-clerical staffs. This initiative has
restricted both the customer as well as employee from direct interaction with the
management. The employees are not provided with any freedom to participate in decision-
making and work in their own way rather has to consult with management and act
accordingly. Employees do not get proper position or recognition according to their quality
and contribution rather it depends on the favouritism and they do not receive any kind of
appreciation in return of extra effort, the financial increment is provided annually without
considering the economy trend.
In Response to Question 2:
In an empirical study, which has been held it, is found that the level of morality within
the employees within the organization is low. The employees working in different department
have different kinds of complaints and the most important observation is that the employees
did not feel valuable to the top management. To get rid of the problem the management must
take some initiatives such as the management should structure itself in a way that it would
enable the employees freely with the management and share their problems as well as ideas
(Maslow, 2013). The management must practice the transparency and equality in respect to
recruitment and selection policy. The organization definitely gives recognition and

2MANAGEMENT STYLE OF COMPANY X
appreciation along with proper financial offer to the employees for their extra effort and
contribution, which in turn will help to increase their motivation and make them loyal to the
organization as it is also shown in the Theory Y of McGregor. Employees must be
encouraged to share their views and participate in decision-making process, which in turn can
make them more connected to the organization and its goal to achieve without any
requirement of control or pressure as it is suggested in the theory of Y.
In Response to Question 3:
Company X’s Vision is to provide the excellent financial service to the people in the
area it operating. In its vision, it has focused on the quality of service but to think about only
the local people is not the wise decision rather it should concentrate on expanding its service
worldwide with equal importance. Company X’s mission is to create the wealth for
stakeholders through with initiating the innovation, value-added partnership and passion for
service. The vision of the organization is not appropriate as it is concentrating on the
stakeholders only. Instead of focusing on the value creation and satisfying the stakeholders, it
should concentrate on the satisfaction of both the internal and external customer. To bringing
the innovation and passion required for achieving the excellence in service, it requires to
provide the employees with the authority to participate in decision-making. The opportunity
to share their ideas and satisfy them through providing proper recognition, appreciation as
well as financial support to better their condition, which will in turn make them loyal and
committed to the organization (Wirtz & Jerger,2016). Thus, it will bring the excellence in
service to the customer and value for stakeholders. The values it follows are appropriate to
get insured success in the field.
In Response to Question 4:

3MANAGEMENT STYLE OF COMPANY X
To address this issue of employees becoming lazy as per the complaints made by a
manager of the company X I will collect the information from the HR department through
their performance appraisal report. Then will try to identify the reasons behind their
degradation in performance. After detecting the reasons, I will try to provide the manager
with solution. I will suggest him to communicate properly with them and try to find out the
reasons as well as establish emotional connectivity. After this, I will ask him to motivate
them through offering some special opportunity or other facility. Give them the authority to
do their work in their own style and provide them the opportunity to share their views in
respect to any discussion, which will make them assume that they as well as their perception
are valuable to the organization (Bruce & Nyland, 2011). The employees should be provided
with the option of increment or the promotion according to their contribution or effort, which
in turn can motivate them to do more and achieve the target of them and the organization.
Instead of focusing on the control and rules he should try to give them internal satisfaction
and the reason to stay following the way suggested in McGregor’s X and Y theory.

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References
Arslan, A., & Staub, S. (2013). Theory X and theory Y type leadership behavior and its
impact on organizational performance: Small business owners in the Şishane Lighting
and Chandelier District. Procedia-social and behavioral sciences, 75, 102-111.
Bruce, K., & Nyland, C. (2011). Elton Mayo and the deification of human
relations. Organization Studies, 32(3), 383-405.
Maslow, A. H. (2013). A theory of human motivation. Simon and Schuster.
Wirtz, J., & Jerger, C. (2016). Managing service employees: Literature review, expert
opinions, and research directions. The Service Industries Journal, 36(15-16), 757-788.