Business – 2.3 Management – Management and managers | e-Consult

The senior manager’s reliance on strict supervision reflects a Theory X perspective, assuming employees lack motivation and need external control. While this may produce short‑term compliance, it often leads to resentment, reduced intrinsic motivation, and higher turnover, exacerbating the productivity problem.

Applying Theory Y suggests that employees could be motivated by greater autonomy, clear goals, and opportunities for skill development. By involving staff in decision‑making, providing job enrichment, and recognising achievements, the firm can address underlying motivational deficits.

Recommended strategy: Shift to a Theory Y‑based approach: conduct a diagnostic survey to identify employee concerns, implement participative goal‑setting, delegate responsibility for specific production tasks, and introduce non‑monetary rewards such as recognition programmes. This should improve morale, reduce absenteeism, and enhance productivity over the longer term.