Topic > The business environment - 1370

Contingency theory believes that there is no best form for the organization and focuses on the design of general principles that depend on the nature of the task and the environment (Mullins, b, 2011 . p.280) . In the study of leadership style there is no single leadership style suitable for all situations. Faced with a new individual and dynamic environment, leadership style must be adapted and adapted through changing characteristics, power, the relationship between employees and groups and so on. In the study of management style, McGregor (1960) put forward two assumptions called theory X and Y, which is a management theory in which an employer identifies factors that create an impact on employee performance. The fundamental principle of Theory X is control through a centralized system of organization and the exercise of authority. However, Theory Y must integrate organizational and individual goals. Theory X is used when the manager believes that the job lacks ambition and needs some type of incentive to achieve better results. On the other hand, theory Y believes that workers are naturally responsible and do not need any incentives (Capozza, Brown, Aharpour, and Falvo, 2006.