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Organizational Behaviour in 21st Century – ‘Theory A’ for Managing People for Performance

Aithal, Sreeramana and Kumar, Suresh (2016): Organizational Behaviour in 21st Century – ‘Theory A’ for Managing People for Performance.

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Abstract

Theory X, Theory Y and Theory Z in organizational behaviour (OB) are related to human motivation and management. Theory X and Y were coined by Douglas McGregor in the late 1960s, says that the average human being is lazy and self-centred, lacks ambition, dislikes change, and longs to be told what to do. The corresponding managerial approach emphasizes total control. Theory Y maintains that human beings are active rather than passive shapers of themselves and of their environment. They long to grow and assume responsibility. Theory Z of Dr. William Ouchi's also called "Japanese Management" focused on increasing employee loyalty to the company by providing a job for life with a strong focus on the well-being of the employee, both on and off the job. The above theories were developed based on research conducted in various production related organizations in the 20th century. But in the 21st century, changes in business models, automation of production process, changes in technology & business environment, and changes in people’s perception, are transforming organizations into global entities. In the context of emergence of service industries and global e-business organizations, these are no longer applicable and need modification. In this paper, we have made an attempt to relook into human motivational theories and developed a new Organizational Attitude Theory called “Theory of Accountability” (Theory A). The four major constructs of Theory A are fixing Responsibility, maintaining Accountability, continuous Monitoring, and fulfilling pre-determined Target (RAMT). In this paper, some of the existing theories of organizational behaviour are examined and basic postulates and detailed organizational model for Theory A is depicted.

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