Theory X, Y, Z
**What theory would you use when running a business and why?
Theory X – workers don’t like to work and are more motivated through getting paid
by output as opposed to hourly. Would require close supervision.
Theory Y – People have a tendency to like to work and like to participate in the
Theory Z – Run on of Theory Y. People participate in quality circles, participative
management, self directed work teams. Emphasizes employees involvement in
Intrinsic rewards – internal
Extrinsic rewards – external
Quality, why is it important why is it used. Quality is free = it’s free because it costs
you more to fix quality after the product is released then when you are originally
making the product.
Reliability – whatever vehicle you use to test somebody. Says no matter what you
use to test it every one will come up with the same results regardless of who gives it.
SIG: helps you to get the same top performers
Validity – when you test for a certain set of skills or characteristics for the job. SIG:
hire people that have the right skills to do the job and have lower termination rates.
Both of these used mainly in selection and appraisal.
Adverse Impact – make sure hiring is ethical so you do not impact one group. Broad
brush lay off when adverse impact comes in play. When things can be seen as