LUNAR INTERNATIONAL COLLEGE SCHOOL OF BUSINESS

DEPARTMENT OF BUSINESS ADMINISTRATION

MANAGEMENT THEORY AND PRACTICE

STUDY OF DOMINANT THEORY ON AL- KEMER FLOUR FACTORY

GROUP ASSIGNMENT

NAME ID

1. Abeba Ashebir
2. Arare Abdisa
3. X
4. Y
5. z

Submission Date: - 18/12/2021

Submitted to: - Amare Abewa (PhD

Table of Contents
Acknowledgment......................................................................................................................1
Abstract.....................................................................................................................................2
Introduction..............................................................................................................................3
Objectives of the Paper............................................................................................................4
Methodology.............................................................................................................................4
Dominant theory implemented...............................................................................................5
Strength of the Implemented theory......................................................................................5
Weakness of the Implemented theory....................................................................................5
Suggestion to implement theory better..................................................................................6
Conclusion.................................................................................................................................6

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Acknowledgment

First of all, we would like to give glory to our Almighty God for his helping us. Next, we would
like to thank all the employees and office managers who helped us in any way to construct this
paper.

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Abstract

The study was conducted on management practice and theory of Al-kmr Flour factory . This
study is conducted to assess the organiazational theory implemented in the organization. The
study covers detail about the organization, how the company is designed, the strength and
weakeness of the stated company.

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Introduction

Al-kemer flour Factory Company was established in accordance with the commercial code of
Ethiopia of 1960 and registered with the ministry of Trade & Industry of Federal Democratic
Republic of Ethiopia on 17 sene 1994 E.C. The paid up capital of the company is Birr 2,520,000
denominated in to 2,520 shares with a par value of 10,000 each. The Company is located in
oromiya region at Burayu mariam, around yetebaberut oil. The factory is one competitive
company in the flour manufacturing sector.

The major products of the factory are Flour. Wheat flour is an attractive food item used for
domestic as well as food factories for making biscuits and Pasta. It is prepared by eliminating the
germ and the embryo part from various branny outer coverage of wheat. The company has
equipped with new and modern one major production line Pingle Machine Which is made by
Chine and has a daily attainable production capacity of 300 Quintals. The Pingle machine is
produced 82 ton per day. Also the machine is produced 4-6 ton per hour. The company has 42
employees under its roof. To meet customer’s satisfaction the Company is able to produce 24 hrs
and deliver to wholesaler and bakery housed customer with its own transportation system in
Addis Ababa and other local areas.

Vision

Al-kemer flour factory plc produces competitive Flour, products which satisfy our customer
expectation and need to be well known flour factory in Africa.

Mission

 To be a flour factory having updated technology and skilled man power and
purchasing raw material with reasonable price and produce quality flour which satisfy
costumer need and become competitive in the internal and international market.
 To expand from flour to biscuit, macaroni & pasta.
 To satisfy customers with a good quality products.

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Objectives of the Paper

The Objectives of the paper is to discuss the effect of management practice on the employees of
the Al- kemer flour company:

 To determine the dominant theory in the organization

 To determine the strength and weakness of the theory
 To give suggestions that needs to be improved

Methodology
We used a company that we are familiar to and assessed what theory practice it uses and if there
were any questions we arise we questioned some employees and office management workers for
additional information.

Dominant theory implemented

The dominant theory that was observed on Al-kemer Flour Company is Type II theory which is
theory X & Y. We observed that the company used to practice type Y in the before management
systems. The employees showed a great working motivations and desire during this period. Also
it was known that the company Employees and the management systems were considered as a
family rather than a working environment. There are employees who worked more than 13 years
and who retired but also come just because they feel like a family rather than a working place.
All the things they used to do like being rewarded having a friendly connection were changed to
theory X when the office manager were replaced with another one.

Theory X was Implemented before 6 Month because of some employees who have behavioral
problems. The management practice is changed to tight control supervision and punishments are
being implemented. Now the employees are trying to get used to the fact that they are going to
be under a new theories practices.

Theory X is based on assumptions regarding the typical worker. This management style assumes
that the typical worker has little ambition, avoids responsibility, and is individual-goal oriented.
In general, Theory X style managers believe their employees are less intelligent, lazier, and work
solely for a sustainable income. Management believes employees' work is based on their own
self-interest. Managers who believe employees operate in this manner are more likely to use
rewards or punishments as motivation. Due to these assumptions, Theory X concludes the typical

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workforce operates more efficiently under a hands-on approach to management. Theory X
managers believe all actions should be traceable to the individual responsible. This allows the
individual to receive either a direct reward or a reprimand, depending on the outcome's positive
or negative nature. This managerial style is more effective when used in a workforce that is not
essentially motivated to perform.

According to McGregor, there are two opposing approaches to implementing Theory X: the hard
approach and the soft approach. The hard approach depends on close supervision, intimidation,
and immediate punishment. This approach can potentially yield a hostile, minimally cooperative
workforce and resentment towards management. Managers are always looking for mistakes from
employees, because they do not trust their work. Theory X is a "we versus they" approach,
meaning it is the management versus the employees.

The soft approach is characterized by leniency and less strict rules in hopes for creating high
workplace morale and cooperative employees. Implementing a system that is too soft could
result in an entitled, low-output workforce. McGregor believes both ends of the spectrum are too
extreme for efficient real-world application. Instead, McGregor feels that an approach located in
the middle would be the most effective implementation of Theory X.

Because managers and supervisors are in almost complete control of the work, this produces a
more systematic and uniform product or work flow. Theory X can benefit a work place that
utilizes an assembly line or manual labor. Using this theory in these types of work conditions
allows employees to specialize in particular work areas which in turn allows the company to
mass-produce a higher quantity and quality of work.

Theory Y managers assume employees are internally motivated, enjoy their job, and work to
better themselves without a direct reward in return. These managers view their employees as one
of the most valuable assets to the company, driving the internal workings of the corporation.
Employees additionally tend to take full responsibility for their work and do not need close
supervision to create a quality product. It is important to note, however, that before an employee
carries out their task, they must first obtain the manager's approval. This ensures work stays
efficient, productive, and in-line with company standards.

Theory Y managers gravitate towards relating to the worker on a more personal level, as opposed
to a more conductive and teaching-based relationship. As a result, Theory Y followers may have
a better relationship with their boss, creating a healthier atmosphere in the workplace. In
comparison to Theory X, Theory Y incorporates a pseudo-democratic environment to the
workforce. This allows the employee to design, construct, and publish their work in a timely
manner in co-ordinance to their workload and projects.

Although Theory Y encompasses creativity and discussion, it does have limitations. While there
is a more personal and individualistic feel, this leaves room for error in terms of consistency and

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uniformity. The workplace lacks unvarying rules and practices, which could potentially be
detrimental to the quality standards of the product and strict guidelines of a given company.

Strength of the Implemented theory

 Employees started to be obedient with or without knowing it.

 Started to be going in and leave work on time.
 Some employees started to work properly because the will be punished or even get fired
from their job.

Weakness of the Implemented theory

 Before employees used to do their jobs even jobs that they are not supposed willingly, but
now they feel they are doing jobs in force.
 Feeling uncomfortable on the work of place.
 The new management started enforcing the punishments either on salary or written letters
for warning so employees felt like employees rather than family.
 Employees Started to leave jobs rather than staying for a longer time of period because
they were not comfortable because of tight control.
 Mostly the employees and office management are hardly getting along to work together.

Suggestion to implement theory better

Even though a company should be under rule and regulations sudden changes may affect the
relationship between management and employees, employee’s perspective and productivity of a
company. As we can see in the above there are many weaknesses that are being observed even
though there are some importances. It’s very known that all employees behavior’s can be
challenging but rather than implementing tight control over the employees it was better to
implement an approach that lies between theory X and theory Y.

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Conclusion
Al- kemer flour factory is a very broad and ambitious company. It has great visions and missions
to accomplish in the future. As can be seen the company have a great relationship with the
employees and office management. To improve this relationship they implement different
theories that can benefit employees as well as productivity of the company. As we have
mentioned in the suggestions if the company can implement theory that can lie between in both
theory X and Theory Y it can become more close to the employees and increase its productivity
even more.

Reference

1. McGregor, D. (1957) 'The Human Side of Enterprise', Management Review, 46 (11).

2. Schein, E. (1967) 'Introduction', in McGregor, D. The Professional Manager. New York:
McGraw-Hill, pp. xi-xiv.
3. Head, T.C. (2011) 'Douglas McGregor's legacy: lessons learned, lessons lost', Journal of
Management History, 17 (2), pp. 202-216 JSTOR [Online]. Available at:
http://emeraldinsight.com/1751-1348.htm

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