One of the schools of management thought involves a principle known as the behavioral

management theory. This theory is the school of thought that focuses on the way people work,
and how employers could manage their employees. During the development of the behavioral
management theory, a scientist named Elton Mayo developed an experiment that showed that
increasing human motivation and satisfaction would have a concurrent role in increasing
productivity. By making employees feel like they had a valued role in business operations, Mayo
and his group of colleagues observed that psychological needs and wants had as much a role in
the success of the workplace .
MASLOWS HIERACHY OF NEEDS
Physiological needs
Physiological needs are the physical requirements for human survival. If these requirements are
not met, the human body cannot function properly and will ultimately fail. Physiological needs
are thought to be the most important; they should be met first.
Air, water, and food are metabolic requirements for survival in all animals, including humans.
Clothing and shelter provide necessary protection from the elements. While maintaining an
adequate birth rate shapes the intensity of the human sexual instinct, sexual competition may also
shape said instinct.
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Safety needs
With their physical needs relatively satisfied, the individual's safety needs take precedence and
dominate behavior. In the absence of physical safety due to war, natural disaster, family
violence, childhood abuse, etc. people may (re-)experience post-traumatic stress
disorder or transgenerational trauma. In the absence of economic safety due to economic crisis
and lack of work opportunities these safety needs manifest themselves in ways such as a
preference for job security, grievance procedures for protecting the individual from unilateral
authority, savings accounts, insurance policies, reasonable disability accommodations, etc. This
level is more likely to be found in children because they generally have a greater need to feel
safe.
Safety and Security needs include:
Personal security
Financial security
Health and well-being
Safety net against accidents/illness and their adverse impacts

THEORY X
In this theory, management assumes employees are inherently lazy and will avoid work if they
can and that they inherently dislike work. As a result of this, management believes that workers
need to be closely supervised and comprehensive systems of controls developed. A hierarchical
structure is needed with narrow span of control at each and every level. According to this theory,
employees will show little ambition without an enticing incentive program and will avoid
responsibility whenever they can. According to Dr Kumi Mark, if the organizational goals are to
be met, Theory X managers rely heavily on threat and coercion to gain their employees'
compliance. Beliefs of this theory lead to mistrust, highly restrictive supervision, and a punitive
atmosphere. The Theory X manager tends to believe that everything must end in blaming
someone. He or she thinks all prospective employees are only out for themselves. Usually these
managers feel the sole purpose of the employee's interest in the job is money. They will blame
the person first in most situations, without questioning whether it may be the system, policy, or
lack of training that deserves the blame. A Theory X manager believes that his or her employees
do not really want to work, that they would rather avoid responsibility and that it is the manager's
job to structure the work and energize the employee. One major flaw of this management style is
it is much more likely to cause diseconomies of scale in large picture.
THEORY Y
In this theory, management assumes employees may be ambitious and self-motivated and
exercise self-control. It is believed that employees enjoy their mental and physical work duties.
According to them work is as natural as play. They possess the ability for creative problem
solving, but their talents are underused in most organizations. Given the proper conditions,
Theory Y managers believe that employees will learn to seek out and accept responsibility and to
exercise self-control and self-direction in accomplishing objectives to which they are committed.
A Theory Y manager believes that, given the right conditions, most people will want to do well
at work. They believe that the satisfaction of doing a good job is a strong motivation. Many
people interpret Theory Y as a positive set of beliefs about workers. A close reading of The
Human Side of Enterprise reveals that McGregor simply argues for managers to be opened to a
more positive view of workers and the possibilities that this creates. He thinks that Theory Y
managers are more likely than Theory X managers to develop the climate of trust with
employees that is required for employee development. It's employee development that is a
crucial aspect of any organization. This would include managers communicating openly with
subordinates, minimizing the difference between superior-subordinate relationships, creating a
comfortable environment in which subordinates can develop and use their abilities. This
environment would include sharing of decision making so that subordinates have a say in
decisions that influence them.