Friday, February 24, 2023

Understanding of Theory of X and Y in context of Nepalese Organization Culture / Job

 

 

Understanding of Theory of X and Y in context of Nepalese Organization Culture / Job

Theory X and Theory Y

Definition: The Theory X and Theory Y are the theories of motivation given by Douglas McGregor in 1960’s. These theories are based on the premise that management has to assemble all the factors of production, including human beings, to get the work done.

Theory X: Theory X relies on the authoritarian style of management, where the managers are required to give instructions and keep a close check on each employee. As it is assumed, the employees are not motivated, and they dislike working. This theory is based on the following assumptions:

  1. The employee is lazy and dislikes work.
  2. He is not ambitious and dislikes responsibility and therefore prefers to be led.
  3. The employee is self-centered and indifferent towards the organizational interest.
  4. The management must intervene to keep the employees working towards the economic ends. The employees must be persuaded, rewarded, motivated, punished, controlled to get the work completed.

 

Theory Y: Theory Y relies on the participative style of management, where the managers assume that the employees are self-directed and self- motivated to accomplish the organizational objectives. Thus, here the management attempts to get the maximum output with least efforts on their part. Following are the assumptions of Theory Y:

  1. The average human being does not inherently dislike work, they are creative and self-motivated and likes to work with greater responsibilities.
  2. Employees are self-directed and self-controlled and therefore the threat of punishment is not only the means for getting the desired results.
  3. The extent to which an employee is committed to objectives is determined by the rewards associated with their achievement. The most significant rewards in this context could be the satisfaction of the ego and the fulfillment of self-actualization needs.

As we can see from above theory, as per the nature of staff / employee,  Manager has to treat his employee according to the situation/ type of staff.

 However in the organization those who have branch (Example Banking, Insurance) and if manager is based on theory of X type than how central level ( Kathmandu Based Head Office)  can monitor to individual staff , as  there exists many branches.

Following thing must be assumed/ think by  Top Level Management:-

1. Is Figure (Target achievement) is a best parameter to judge count Branch Manager/ Department Head/ Line Manager as best human Resource.

2. In Branch if lower-level staff does unethical work, branch manager exists for controlling purpose. However, if branch manager / Province head is involved on unethical work, how Head office will monitor him/ how information will be transferred to head office.

3. If in organization/ Branch,  Branch Manager/ Department head / Province head are of Theory of X kind of employee and if lower level staff are of theory of Y kind of employee than how will management know about their staff from Central level.

4. To which thing (Intelligence Quotient or Emotional Quotient) is given priority by organization.

 “’Making works done by other is the definition of Manager.” But also it also been observed, many manger just distribute the work assign to him to other staff and takes credit/ benefits by not doing any work/ no participation.  By giving unnecessary pressure/ threat / mental torcher/  to lower level staff they achieve targets and show their performance to central level ( Head office). However in ground level, many lower level / mid level staff are victim of behavior ( Like how he speaks with staff, is he is misusing the power, how he present body language/ how he has perception towards female staff/ is his level of horizon broad or narrow). 

Another Example can also be taken, many staff are transfer to rural area from Head office/ from city area as  indirect forms of Punishment due to his poor performance / attitude problem. In this case, when this kind of staff get transfer to rural place as well as he have to leave his family for long time. What kind of mind set he shall have towards the organization/  towards top level and management and how will he work / treat his subordinate in branch .  Has management ever thing this kind of issue .

I will like to share experience of one organization . Management has transferred to one of the top level employee ( Department Head) from Head Office by giving role of province head . As he got transferred, information was convey to branch from other staff ( As professional Jealousy always exists in organization) , the staff was been transferred by management as punishment due to his attitude problem.

His frustration was been shown by his rude communication skill in every meeting. Whenever other staff say something or give any feedback, he had a reply convey my negative information to head office and also he used to scold / humiliate lower level staff . Frustration of him has created mental torcher in other lower level. Neither lower level staff can complain ( to whom they can complain since their line manger is himself de-motivated ), neither head office was aware of his behavior.  Due to this employee turnover was also observed in that province.

Another Best example can be taken from one of the leading bank of Nepal who have top/ best balance sheet ln banking Industry. The staff who are working in that bank do-not prefer to give reference/ words to come in their bank for job. Huge mental stress is given to achieve target / Business.  Mental fair / depression is observed in mind of employee.  In this case who have nature of theory of X or theory of Y. ( Staff / Management). Still organization has not realized Emotional Quotient is necessary for long term growth.

Conclusion:-

Organization is exist to achieve goal. To achieve goal human resource plays vital role for it. In organization there exist three level of staff ( Lower, Mid and Top ) level. So before using tools of theory of X and Y, Management must know clearly who is to be treated for theory of X and Y. Also Today every organization for short term growth are giving more focus on Intelligence Quotient but Emotional Quotient has not been prioritize. Due to which employee have taken their organization as a center to earn money ( Ethical way or Unethical) in short period of time . Emotion, loyalty towards organization from employee is lacking because organization are giving more priority to Intelligence Quotient more.

 

By :- Krishna Raj Bhatta

Time :- 9.20 Pm

Date :- 24.02.2023

Place :- Mid Baneshwor Kathmandu

 

References: -

https://businessjargons.com/theory-x-theory-y.html

https://keydifferences.com/difference-between-iq-and-eq.html

 

 

 

 


Saturday, May 14, 2022

Chapter 4

 


Bhagwad Gita Chapter 4,


Children dont learn what parents says, Children learn by observing what parents do.


Example, A guardain who gives more time to friend instead of family.. Later the child also does the same.

Friday, May 13, 2022

CHANGES IN SOCIAL ENVIRONMENT

 WE ARE BLAMIMG, SOCIAL ENVIRONMENT HAS BEEN NEGATIVELY CHANGED , BUT WHO IS RESPONSIBLE FOR PRESENT ENVIRONMENT. WHO ARE THE COMPONENTS OF THIS ENVIRONMENT...

Individual Judgement


The parameters of Individual Judgement towards other depends on your belief and values. How much rigid you are , your view to judge other people is much higer.( You are more rigid )


Example. If a person drinks wine, he takes easy if other also drink but if he don't drinks, he takes wine also an important parameter to judge other. ( Here you are flexible if you drink and you are rigid towards other if you dont drink).

Wednesday, May 11, 2022

Departmentalization and Structure for Credit Department.

 

Departmentalization and Structure for Credit Department

Departmentalization is defined as a process that groups activities into different departments. These departments are created so that tasks can be performed by specialization within the organization.

Departmentalization also refers to an organization’s formal structure that includes several departments and positions and their respective relationship with each other.

Every organisation as per the nature, objectives, as per their available resources creates their department. Regarding to bank, various bank have created their own department.

Every organisation  used their own model in various departments. Departmentalization is a continuous process. As per the nature of organisation, its needs and as per the change in the environment, Structure, Authority Responsibility departmentalization model gets change. Regarding to Risk Department following Departmentalization model can be used for efficient process.

                                                          Structure of Risk Department




 

 

 

 

 Details explanation

1.      At First RO will prepare CA and shall be forwarded for review to BM. After proper correction of CA and giving proper recommendation BM will forward CA to Risk Analyst or Credit Manager.

2.      As bank has set their own standard upto which limit file has to be forwarded to credit manager/ line manger directly and upto which file has to be forwarded to risk. ( Example in some bank, file is send to risk department from 2 crore and above. Below it direct credit manager review file. While in some bank, all file is  is send to risk)

a.      File Send to Credit Manager: - Loan amount in lower size, ADC Product, Time extension, Full loan settlement can be direct send to Credit Manager from Branch.

b.      File send to Risk Department: - File of Funded and Non funded Loan (New or renew, enhancement) can be send from Branch . Limit can be set from which Limit file has to forward to Risk. If File is reviewed by RA than it shall be forwarded to credit Manager or Senior Risk Analyst.

Note :- In Risk Department , RA shall be segregated as per ( Retail , SME, Corporate , Project Finance). RA which has been segregated for Retail will only review Retail file, RA which has been segregated to SME will only review SME File.


 

3.      File Send to Senior Risk Analyst :- File of large size or complicated in nature or within some amount ( where secondary REC is not there or loan above 5 crore). Loan given on basis of Primary collateral or on the basis of PG , should be again reviewed by Senior Risk Analyst. If file is reviewed than it shall be forwarded to Credit Manager.

4.      File Send to Credit Manager :- Credit Authority ( Limit) should be provided to Credit Manager. Credit Manager shall be different for  Retail, SME, Corporate and Project Finance. As per the Limit provided, Authority Delegation Credit Manager shall review or approved File and If the file which are not in their limit . It shall be forwarded to Head of Department.

Note :- If Credit Manager feel discomfort in proposal or felt any dought on file/ Business/ party. Credit Manager Can Communicate with Province Head to review Business / REC. In this Province head have to give their view for the unit/ party with written memo.

Province Head Delegation :-  Approving authority of ADC Product , time extension of loan 5 Million, approval of special memo ( Professional loan of school teacher as per approved memo, Army loan, Microfinance subsidy loan, can also be given). 

5.      Head of Department :- As per the nature of File ( Consumer, SME, Corporate, Project finance), Department will be assign. Authority and various deviation can be provided to them. As per the assign Authority CA shall be Approved from Head of Department. Further as if approval need from higher authority it shall be forwarded to DCEO, CEO and Board.

6.      DCEO, CEO and Board :- As per the assign authority file will be approved.

 Conclusion: -

 Departmentalization facilitated to maintain coordination, communication and control among all the mechanisms of the organisation. It creates separate units with some independent responsibilities to departmental manager who in term improve their working efficiency and effectiveness.  The above model presented can provide, 

Specialization of Work and synergy effect in process with accuracy:- As Department is segregated and work is assign differently for each department.  Each individual ( RA, line Manager) shall be specialized in their task and if an individual gets specialized in their task, there shall be synergy effect in process ( fast process with more accuracy).

 

Date :- 11.05.2022

Time: 11.24 pm.

Anamnagar- Kathmandu

By :- Krishna Raj Bhatta