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1.3.1 History

Landmarks of the conception and progress of western Scientific Management can be traced to the last 100 years or so. There are three well defined channels in which these management thought and principles can be grouped. The x-theory, the y-theory and the latest z-theory. Infact, our ancient scriptures like manushastra, Upanishads describe vividly organizational behavior individual and group behavior etc. The various doctrines and postulations ·to guide the rulers and the administrators of various countries of the world like India, Babylon, China, Greece may well form the fundamental principles. of managing human element, financial and trading aspects. Well recorded Kautilya’s Arthashastra (400 B.C) is one such doctrine.

X-theory : This theory assumes that man is naturally lazy and dislikes work. He has little ambition and does not want to shoulder any responsibility but desires total security. Thus by coercion, control and directive or by suitable reward or bribe, he can be made to work .

Y-theory : This theory assumes that work is a natural activity and that everybody derives satisfaction in doing some work. It also base that everybody wish to develop himself and thereby satisfying important human need for self-realization. This prompts him to take initiative and shoulder responsibility. Hence rules and regulations are secondary and organization objectives are only primary.

Z-theory (contingency theory) : This theory has been based on careful survey of several organizations and postulates that an organization should be tailored to suit the requirements of tasks and people. For best results flexibility of the organization is a must and the tasks, people and the organization structure must fit together well.