Theory X and Theory Y in Corporate Performance Evaluation - Essay Example

The concept of peripheral and core workforce was not incorporated in earlier studies but in the recent scenarios, it has gained importance due to changing economic conditions.

Main Body
Flexibility in the organizational system is an important approach. This form of flexibility ensures that there is an increased rate of employee productivity. Earlier theoretical frameworks on human resource management have been able to support the flexibility aspect of an organization. Theory X and Theory Y state such flexibility within the system (Leatherbarrow, 2014). Classical theory is also represented as Theory X. As per this theory, there are individuals who prefer to avoid work, need to be threatened by giving punishments, avoid responsibility and always desire job security. On the other hand, Theory Y takes into consideration another set of characteristics of human beings. The assumptions of this theory are mental or physical effort required in work is similar to spending leisure time (Bamberger and Meshoulam, 2000). There exist proper conditions under which human beings learn and seek responsibility. Hence there are theories on human resource management not only stating acquisition or retention of employees but even highlighting different dimensions of organizational commitment.

During economic hardships, traditional human resource management definitions do not hold much relevance. Classical theory on human resource management is the underlying principle used in earlier times but is not applicable in the present scenario. This theory indicates that human resource management is associated with tasks or production.

As per this concept, HRM practices are inclined towards coercion, punishment, and control. Decision-making is exhibited at the topmost hierarchical level and is later conveyed to other levels. This concept cannot be incorporated in organizations operating in the current scenario. In 2014 organizations are likely to change their management structure (Guest, Michie, Conway, and Sheehan, 2003). Economic hardships can be managed by focusing on peripheral and core workforce. UK organizations have recently shifted from the traditional approach of employee retention. Peripheral and core workforce is being maintained in these organizations. In certain circumstances, the peripheral workforce is being eradicated in order to sustain a core knowledgeable and skilled workforce.

Conclusion
As per the study, there are two opinions portrayed regarding the application of the earlier definition of human resource management in the present scenario Read More