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  • Essay / Adam Smith's Influence on Modern Management - 642

    It has become evident that “worker productivity and organizational success are based on much more than the satisfaction of economic or social needs” (Bateman, Sneel p41 ). This recognition developed the approach to organizational behavior which was influenced by Douglas McGregor and his theories X and Y. Theory X managers tend to micromanage their employees because they believe that the average worker is lazy and tends to to need more supervision and motivation. The methods they use to motivate employees are usually reward and punishment. Theory Y tends to motivate through Maslow's hierarchy of needs and believes in challenging employees (Hindle