ASSIGNMENT 2 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 4: Leadership and Management (5036)

Submission date 04/04/2024 Date received (1st submission)

Re-submission date Date received (2nd submission)

Student name Tran Hai Yen Student ID BH01184

Class BA06302 Assessor name Hoang Van Dung

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I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I understand that
making a false declaration is a form of malpractice.

Student’s signature:

Yen

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Contents
I. Introduction........................................................................................................................................4

II. BM Bank............................................................................................................................................ 4

1. Introduction................................................................................................................................... 4

2. Core value & mission & vision........................................................................................................5

3. Organizational structure................................................................................................................ 5

III. Motivational Strategy Based on Alderfer’s ERG Theory....................................................................7

1. Alderfer’s ERG Theory....................................................................................................................7

2. Motivation Stategy for BM Bank....................................................................................................7

2.1. Existence needs.......................................................................................................................7

2.2. Related need......................................................................................................................... 10

2.3. Growth needs........................................................................................................................11

IV. Motivational Strategy Based on Vroom’s Expectancy Theory........................................................12

1. Vroom’s Expectancy Theory.........................................................................................................12

2. Motivation Stategy for BM Bank..................................................................................................13

2.1. Expectancy............................................................................................................................ 13

2.2. Instrumentality......................................................................................................................14

2.3. Valence..................................................................................................................................15

V. Appropriate Leadership Methods for BM Bank...............................................................................16

1. Favourability of Leadership Situation – Fiedler............................................................................16

2. LPC Scale Applies In A Real Situation........................................................................................... 18

VI. Appropriate management methods for BM Bank..........................................................................18

1. Douglas McGregor's Theory X and Theory Y Management..........................................................18

2. Applying Theory X and Theory Y Management to BM BANK.......................................................19

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VII. Conclusion..................................................................................................................................... 19

VIII. Reference..................................................................................................................................... 19

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I. Introduction
After analyzing theories, leadership and management styles, and analyzing the application of
those theories into practice, as Director of BM Bank, an enterprise in Vietnam with a scale of 9000
staff. BM Bank was established on November 4, 1994 with an initial charter capital of 20 billion VND
and 25 employees. Up to now, BM Bank is a multifunctional financial group with 296 transaction
points nationwide with nearly 15,000 employees, 03 branches in Laos, Cambodia, 01 representative
office in the Russian Federation and 06 member companies. pellets. operating in the fields of
securities, insurance, real estate, fund management, consumer finance... serving a variety of
customer segments and economic sectors, making an important contribution to economic
development. country economy. After more than 26 years of construction and growth, BM Bank has
made its mark on the financial market with a stable and strong growth rate, always ranking among
the top banks in Vietnam in terms of business efficiency. To ensure my business's efficiency and
long-term growth, as a director of BM Bank, I need to think about how to optimize the organization's
performance and ensure its growth. organization's development. continue. Realizing the importance
of motivating employees for the company's development, below is BM Bank's performance
management improvement plan.

Below are my recommendations for solutions to optimize candidater organization's

performance and ensure continued growth. My proposal includes 8 main parts. Part 1 introduces
BM Bank. Part 2 presents the content of Alderfer's ERG Theory and offers a motivational plan based
on this theory. Part 3 presents the content of Vroom's Expectancy Theory and provides a
motivational plan based on this theory. Part 4 presents the content of Fiedler's Favorable Leadership
Situation and applies this theory to practice. Part 5 presents the content of Douglas McGregor's
Theory X and Theory Y of Management and provides policies to apply this theory to business
practice.

II. BM Bank
1. Introduction
BM Bank was established on November 4, 1994, with an initial charter capital of only 20 billion
VND and 25 employees. As of 2019, BM Bank's charter capital has increased to nearly VND 8,000
billion. Currently, this bank's network has been expanded throughout the country. With 138

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branches and more than 190 transaction points spread across 48 provinces and cities. BM Bank has
its headquarters in Hanoi and a transaction headquarters, with more than 3,000 officers and
employees working and operating in the banking sector. In addition, BM Bank has also built an
international network with the bank's representative office in the Russian Federation and two
branches in Laos and Cambodia. From its starting point as an enterprise belonging to the Vietnam
People's Army, BM Bank has been operating with a mission for the development of the country and
for the practical benefits of customers. Through 25 years of formation and development, up to now,
BM Bank has grown stronger and stronger. In addition to expanding many branches and transaction
locations across the country, BM Bank has also built and developed member companies in many
different fields: consumer finance, asset management, fund management, securities, life insurance...
to provide the best services to customers.

2. Core value & mission & vision

BM Bank's vision and mission are expressed through core values:

Solidarity: BM Bank promotes the spirit of solidarity and discipline. All members are dedicated
to performing their duties, ensuring reliability and efficiency in their work.

Reliability: BM Bank is committed to responding fully and on time to individual and corporate
customers, both high-end and institutional customers.

Pioneer: BM Bank dares to think and act, faces challenges and accepts all changes. Pioneering
helps BM Bank consciously rise up, have the motivation to develop, towards the goal of providing
the best service to customers.

BM Bank's vision in 2021 is “The most convenient bank,” and the motto is “Digital acceleration;
Retail disruption; Safe - Effective". In the future, BM Bank aims to become a digital enterprise and
leading financial group.

3. Organizational structure

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III. Motivational Strategy Based on Alderfer’s ERG Theory
1. Alderfer’s ERG Theory
Alderfer's ERG theory is a theory of human motivation proposed by Clayton Alderfer, an
American organizational psychologist. This theory is an extension of Maslow's theory of needs, in
which Maslow's five needs are classified into three groups: existence needs, relatedness needs, and
growth needs ( oxfordreference.com, 2020).

First, existence needs are the most basic human needs, related to life and survival. These
needs include physical factors such as food, clothing, shelter, safety and security. These needs are
equivalent to Maslow's two groups of physiological and safety needs. When these needs are
satisfied, people will have stability and peace of mind in life.

Next, relatedness needs are those related to human communication and social interaction.
These needs include maintaining interpersonal relationships, such as friends, colleagues, and family,
and having deeper relationships with the important people in one's life. These needs are equivalent
to Maslow's two groups of social and self-esteem needs (external components). When these needs
are satisfied, people will have belonging and recognition in society (businessjargon.com, 2021).

Finally, growth needs are those related to the personal and professional growth of people.
These needs include creativity and personal productivity, self-actualization, and self-actualization.
These needs are equivalent to Maslow's two groups of self-esteem (intrinsic) and self-actualization
needs. When these needs are satisfied, people will have progress and satisfaction in work and life
(Min, 2021).

2. Motivation Stategy for BM Bank

2.1. Existence needs
To meet existence needs, as a director of BM Bank, I understand that human resources policy
at BM Bank must meet the basic daily needs of all employees at the company, such as This basic
need can include food, transportation, living, housing, etc. First is the salary policy. Basic salary is the
minimum amount that an employer must pay an employee for a certain period of work, excluding
allowances, bonuses or other payments. The basic salary is regulated by the State and may vary by
region, industry and employee's experience level. The basic salary has an important meaning in
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 ensuring the rights of workers, especially low-income workers. Below is the basic salary for each
position at BM Bank.

Position Basic Salary

Credit officer 10.000.000 ₫
Tellers 15.000.000 ₫
Corporate Customer Specialists 22.000.000 ₫
Trainees Corporate Customers 20.000.000 ₫
Trainee Specialists Individual Clients 20.000.000 ₫
Personal Customer Specialists 25.000.000 ₫
Priority Customer Specialists 25.000.000 ₫
UB Trainee Specialists 20.000.000 ₫
Trade Finance Specialist 25.000.000 ₫
Major Account Specialists (CIB) 18.000.000 ₫

In addition to the standard salary outlined for each employee, the monthly allowance is
another component within the company's salary and bonus scheme. This allowance serves as
supplementary compensation to address factors such as working conditions, job intricacy, living
standards, and the level of labor attraction, which may not have been fully considered or integrated
into the base salary corresponding to the job position or title on the salary scale. Below, we detail
the monthly salary allowance policy applicable to employees at BM Bank.

Job Title Type of allowance

Position Cost of gasoline Phone charges Lunch cost
Directors 5.000.000 ₫ 3.000.000 ₫ 3.000.000 ₫ 50.000 ₫
Vice directors 4.000.000 ₫ 2.000.000 ₫ 2.000.000 ₫
Sales manager 3.000.000 ₫ 1.500.000 ₫ 2.000.000 ₫
Trade Finance Specialist 3.000.000 ₫ 1.500.000 ₫ 2.000.000 ₫
Priority Customer Specialists 3.000.000 ₫ 1.500.000 ₫ 2.000.000 ₫
Major Account Specialists (CIB) 500.000 ₫ 800.000 ₫
UB Trainee Specialists 500.000 ₫ 800.000 ₫
Trainees Corporate Customers 500.000 ₫ 800.000 ₫

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 In addition to the basic salary and annual allowance, as a director of BM Bank, I realize that
insurance costs are also a very important expense. With this policy, our employees feel safe when
working and want to stay with the company for a long time. BM bankers are paid social insurance
and health insurance, in addition, official employees and their relatives will be paid MIC health
insurance - an exclusive insurance package provided by BM Bank.

Types of insurance Deducting into business expenses Excerpt from employee's

(%) salary (%)

Social insurance 17 8
Health Insurance 3 1,5
Unemployment insurance 0 1
Total 20 10,5

In addition to the basic salary that BM Bank pays its employees monthly, performance bonuses
- employee bonuses are also a very important part of the company's bonus plan. The goal of this
proposal is to encourage employees to be more productive, increase engagement and
accountability, and reward their positive contributions. The first is performance-based bonuses. This
bonus level is calculated based on the results of evaluating the employee's work performance
according to criteria such as work quality, sense of responsibility, ability to cooperate, creativity,
innovation... This bonus level has can be up to 20% of the employee's basic bonus. Specifically, if BM
Bank's sales staff completes 120% of the assigned sales target, they will be highly appreciated by
colleagues and customers for their professionalism and dedication. Therefore, the employee is given
a bonus of 15% of the employee's gross basic salary. The second is the special project bonus. This is
a reward for employees participating in projects that are especially important to the company's
development such as market expansion, new product development, and product process
improvement. This bonus can be up to 10% of the employee's base salary.
And finally, BM Bank also has an annual travel policy for employees. Travel is a useful
recreational activity, helping employees relax, improve their health, and create opportunities to
interact and bond with colleagues. This is also a way for businesses to show care and gratitude to
those who have contributed to the company's success. This policy applies to all employees of the
company, including both permanent and contract employees. However, to ensure fairness and
encourage company engagement, we recommend that only employees with 6 months or more of
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service experience can participate in travel activities. New employees or those with shorter tenure
will be counted the following year. This policy is expected to organize employees to travel once a
year around October or November, when the weather is favorable and not too high for travel. Travel
time will last from 3 to 5 days, depending on location and budget. The company will notify
employees of travel plans at least 2 months in advance so that employees can arrange work and
family. The company will also collect employee opinions on favorite locations and make a majority
choice. This policy will cover all travel expenses for employees, including airfare, travel fees, lodging,
meals, sightseeing and activity fees. The company will sign contracts with reputable travel
companies to ensure quality and reasonable prices. Employees are not required to contribute any
fees for this tour.

2.2. Related need

To meet related needs, it is important to create a friendly working environment. To do that,
BM Bank has policies that suit the needs and desires of employees, while also reflecting the values
and culture of the business. A happy, comfortable atmosphere will help employees feel happier,
more excited and more active at work. BM Bank always creates a happy and comfortable
atmosphere by creating moments of fun, relaxation and connection at work. It could be games,
parties, travel, charity work or a common hobby. As the General Director of BM Bank, I understand
the need for balance between work and life, between pressure and relaxation, between seriousness
and humor. At the same time, everyone in the business must respect and share each other's joys
and sorrows. The next step is to create opportunities for employees to learn and grow. A friendly
working environment is also an environment of continuous learning. BM Bank always encourages
and supports employees to participate in training courses, seminars, workshops or new projects to
improve knowledge and skills. At the same time, BM Bank also creates communication and feedback
channels to comment and evaluate employee performance, as well as suggest potential
development directions. Besides, promote communication and cooperation at work.
Communication is the bridge between individuals and organizations. Effective communication
conveys information, ideas, desires, and emotions clearly, accurately, and easily understood. At the
same time, communication is also an opportunity to receive feedback, suggestions and support from
others. Leaders at BM Bank always encourage and create conditions for employees to communicate
regularly, openly and honestly with each other and with leaders. At the same time, BM Bank has
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created official and unofficial communication channels, including meetings, reports, emails,
messages, phone calls and extracurricular activities. In addition, leaders at BM Bank also promote
cooperation between individuals and groups at work. By providing common goals, clear workflows
and flexible coordination methods. At the same time, people respect, trust and help each other at
work. We also create convenient, clean and comfortable working spaces as well as entertainment,
relaxation and exercise areas so that employees can maintain good health and balance their lives.
Thus, a friendly working environment not only benefits employees but also contributes to the
success and development of the business.

2.3. Growth needs

As General Director of BM Bank, I realize the importance of placing employees' career
development at the heart of company policy. So, as general manager, I developed plans to help my
employees advance their careers. We always strive to show our employees that they are supported
by both the company and their managers in their desire to grow professionally by applying the
following strategies to promote employee development.

Regarding policies to improve knowledge and skills for employees, BM BANK has many policies
that are applied effectively. One of the important factors to maintain and improve business
performance is training and updating skills for former employees, especially those with large roles
and responsibilities. In the work. To do this, BM Bank always ensures that former employees are
trained in professional skills according to market and customer trends and requirements. Managers
in businesses have an important role in training. Professional skills for former employees, by:
Analyzing the needs and goals of the job and the business; identify necessary and desired
professional skills for former employees; planning, allocating resources and monitoring the progress
of training programs; Evaluate the effectiveness, results and impact of training programs. In addition
to training by internal resources, training for employees by external consultants is also necessary.
Providing training courses such as: soft skills training, vocational skills training, skills training in the
era of digital transformation; Lectures or training documents on the latest expertise and operations
that are appropriate to the business's field of operation. Design practical tests, exercises or projects
to test and strengthen candidater employees' career skills in candidater business. Organize
discussions, seminars or training sessions to exchange experiences, share knowledge and answer
questions about the knowledge of the training course.
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 Besides, at BM Bank, we show employees the path to advancement in their functional areas.
We constructed diagrams to illustrate potential location changes, both horizontally and vertically
and with all specific functions within BM Bank. This framework is the foundation for career
orientation for employees at BM Bank.

IV. Motivational Strategy Based on Vroom’s Expectancy Theory

1. Vroom’s Expectancy Theory
Vroom's expectations theory is a motivational model that explains how people choose
between different behaviors based on their expectations of outcomes. This theory was developed in
1964 by Victor Vroom, a Canadian psychologist and has been widely applied in various fields such as
organizational behavior, education, health and sport. The theory holds that people are motivated by
three factors: expectancy, intrumentality, and valence ( ifm.eng.cam.ac.uk, 2021).

The first is Expectancy. This is the belief that one's efforts will lead to desired results. For
example, if candidate work hard on a project, candidate expect high-quality results. Expectancy are
influenced by factors such as self-efficacy, goal difficulty, feedback, and support (ifm.eng.cam.ac.uk,
2018).

Instrumentality is the belief that one's activity will lead to a desired outcome. For example, if
candidate score well in an exam, candidate expect to receive a reward from candidater teacher or
candidater parents. Instrumentality can be influenced by factors such as trust, clarity, and fairness.
Trust is the belief that the person giving the reward will honor the promise and deliver the reward.
Transparency is the level of transparency and specificity of the reward criteria and processes. Equity
is the perception of fairness and equality in the distribution of rewards (thedecision.com, 2020).
Valance is the value or attractiveness of the outcome to the individual. For example, if
candidate receive a reward for candidater good grades, candidate may value it more or less
depending on candidater personal preferences and needs. Valance can be influenced by factors such
as internal and external motivations, values and interests. Intrinsic motivation is the enjoyment and
satisfaction that comes from performing the task itself. Extrinsic motivations are the external
incentives and pressures that drive behavior. Valance are principles and standards that guide one's
choices and actions. Hobbies are topics and activities that arouse a person's curiosity and attention.

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2. Motivation Stategy for BM Bank
2.1. Expectancy
As for the expectations, as a general director of BM Bank, I am forced to make our employees
always have expectations and always be motivated to work hard. Understanding that, we always
create trust for employees, helping them believe that if they try their best at work, they will receive
a worthy reward.

The first is through how BM Bank recruits talent and how we assign talent to do their jobs well.
We operate a transparent and fair recruitment process. We establish clear and objective
recruitment criteria and processes, ensuring that every candidate has an equal opportunity to
demonstrate their abilities. And we always communicate clearly and regularly with candidates, so
they know how the recruitment process is going, thereby being better prepared for the interview
rounds. Especially in the process of recruiting talent, we always emphasize the reward system as
well as the salary and promotion regime for the recruited position, this increases the candidate's
confidence, helping them have more Motivation and effort to achieve goals if recruited to BM Bank.
BM Bank's recruitment process is specifically as follows:

 Round 1: Screening candidate profiles

 Round 2: Test the candidate's leadership qualities. The exam format of this round is essay
writing on paper. The content is a presentation about leadership through an experience from
candidater past. Note, do not mistakenly think that leadership means leading a group or
organization. Leadership skills here can simply be the ability to solve a very small problem or
situation in life. What's important is how candidate show what candidate did and how
candidate did it when that problem occurred.
 Round 3: Test the candidate's logical thinking. This test will consist of 2 parts:

+ Part 1: language ability test. Candidate will be asked to read 3-5 passages and answer 3-5
questions for each passage. The secret is to skim to grasp the topic and then read the question
to determine the information candidate are looking for.

+ Part 2: IQ test in the usual way

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  Round 4: Interview, direct personality assessment. This is a round that only Vinamilk has and is
considered the most difficult round. Candidate will be asked to answer 18 questions about the
topics. beliefs, life mission, moral values, goals, expectations in life, etc. With this section,
absolutely do not ramble, but think seriously about the issues before giving answers. Because
then candidate will be questioned very harshly by the jury about each of the above issues. If
candidate are not consistent, it is easy to be found to have answered incorrectly.
 Round 5: Check and evaluate the candidate's strengths. This test will last 30-40 minutes. The
system will return results of candidater top 5 strengths and candidate will use these results to
write an essay in both English and Vietnamese.
 Round 6: Presentation, second face-to-face interview. In this round, candidate will present
about the test in round 5 and candidate will also be reminded of the answers in the 18-
question test in round 4. Candidate Candidate need to compare and explain the difference
between the results of these two tests and give candidater own opinion. The judges for this
round are usually the Directors of the departments for which candidate auditioned along with
the project team judges who have followed candidate throughout the process from round 1
until now.

After the recruitment process, BM Bank also pays special attention to the arrangement and
placement of personnel suitable to their capabilities. We understand that we need to give
employees jobs that are not too difficult, not too easy, suitable to their abilities and need to make
employees feel capable of working without getting bored or bored. . difficult. As a manager, I always
encourage creativity and innovation in my employees in many friendly ways so that they are not
afraid of failure or criticism. And what's more, it makes our employees feel more confident in their
abilities and efforts.

2.2. Instrumentality
In terms of instrumentality, as a general manager of BM Bank, I understand that we must
make our employees believe that their hard work and efficiency will lead to certain rewards worthy
of their efforts. their force. To do that, we first do it through employee performance evaluation. To
do that, we first do it through employee performance reviews. Regarding quantity, BM Bank applies
specific and objective measurement criteria for each department, position, and level of

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responsibility. Employees are assigned clear work goals and can track work performance through the
performance management system. Employees are also encouraged to evaluate themselves and give
feedback to their superiors to improve productivity and efficiency. Regarding quality, BM Bank
focuses on improving employees' capacity and skills through training, coaching and career
development programs. Employees are evaluated according to quality criteria such as creativity,
expertise, cooperative spirit, service attitude and compliance with regulations. Employees are also
recognized and rewarded if they have excellent achievements or make positive contributions to the
company's development.

In addition to evaluating employee performance, we also have a performance-based

compensation policy for employees. The goal of this policy is to encourage employees to work more
effectively, increase engagement and accountability, and reward their positive contributions. The
first is performance-based bonuses. This bonus level is calculated based on the results of evaluating
the employee's work performance according to criteria such as work quality, sense of responsibility,
ability to cooperate, creativity, innovation... This bonus level has can be up to 20% of the employee's
basic bonus. wage. Specifically, if BM Bank's sales staff completes 120% of the assigned sales target,
they will be highly appreciated by colleagues and customers for their professionalism and
dedication. Therefore, employees will receive a bonus of 15% of the employee's total basic salary.
The second is the special project bonus. This is a reward for employees participating in projects that
are especially important to the company's development such as market expansion, new product
development, and product process improvement. This bonus can be up to 10% of the employee's
base salary.

2.3. Valence
Regarding the valance factor in Vroom's expectation model, we need to tell employees about
the value or attractiveness of the outcome or reward. The first is about how high the value of wages
would be if our employees worked at their best. BM Bank has a very attractive bonus policy for
employees who successfully complete their tasks. The bonus is calculated according to the Group's
business results, the performance results of each unit and the individual results of each employee.
Bonuses can be paid monthly, quarterly or annually depending on the type of work. To encourage
employee morale, BM Bank has announced a very attractive bonus policy for those who complete
tasks well. active, BM Bank employees will be rewarded from 10% to 30% of annual salary if they
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achieve assigned business and management targets. This is the highest reward ever of BM , showing
the attention and appreciation of the management for the staff. This bonus policy applies not only to
management level employees but also to lower level employees, including production workers. This
shows that always attaching importance to the role of every member in the development of the
business. BM Bank also supports high-achieving employees to participate in scholarship, exchange or
internship programs at domestic and foreign affiliated companies. These benefits not only help
employees have a safe and comfortable life, but also help them improve their knowledge and skills
to serve customers better and especially increase motivation and job satisfaction. We want our
employees to do their best at work. Thanks to that, BM Bank's staff are always highly motivated,
creative and professional, contributing to the company's success.

V. Appropriate Leadership Methods for BM Bank

1. Favourability of Leadership Situation – Fiedler
Fred Fiedler, a scientist who focused on the psychology and characteristics of leaders, initially
proposed the idea of a situational leadership model in the mid-1960s. Fiedler proposed that People
are born with There is leadership ability, which cannot be taught. In simple terms, Fiedler's point is
that a leader's style never changes (Peter, 2020).
There are two types of leadership styles: Relationship-oriented and task-oriented. The first is
task orientation. Leaders with this style direct employees toward goals. Give instructions, take time
to plan, emphasize deadlines, and provide a clear schedule for work activities. They simply want to
get the job done. Fiedler found that task-oriented leaders are most effective in favorable situations.
This is because everyone on the team gets along, the mission is clear and structured, and the leader
has enough power over followers. In such a situation, the team just needs a leader who can provide
direction. Examples of task-oriented leaders include the following. Project managers are responsible
for leading teams to complete specific projects on time and within budget. Or the military
commander, who leads troops in battle and must make quick decisions under great pressure. Or
executives responsible for leading companies to success through strategic planning and effective
decision making. The next leadership style is relationship oriented. These leaders care about their
subordinates, respect their opinions and feelings, establish mutual trust, are friendly, communicate
openly, develop team spirit, and are in the best interests of their followers. lower grade. below.
Relationship-oriented leaders perform better in relatively favorable situations. According to Fiedler,

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a leader with good communication skills can create a positive atmosphere within the team that
improves relationships. leader-member relationships, clarify the mission and create more structure,
and establish a stronger position of power. Examples of relationship-oriented leaders include:
Human resources managers, who focus on building and maintaining positive relationships with
employees. Mentor, guide and support others in their professional and personal development.
Determine leadership style using a measure he developed called the Least-Preferred Co-
Worker (LPC) Scale. To use this measure you need to think about people you have worked or studied
with. Then rate how you feel about that person according to each factor, and add up the total score.
If your total score is high, you are a leader who values relationships. If the total score is low, you are
a leader who focuses on tasks (vnresource.vn, 2024).

Figure 1 Least-Preferred Co-Worker (LPC) Scale

The favorability of a situation depends on how much influence and power you have as a
leader. Situational favorableness is determined by three variables: Leader-employee relations; Task
structure; Position power. Leader-employee relations are all about trust. Does your team trust you
as a leader? The more they do, the higher your degree of leader-member relations and the more
favorable the situation is. Task structure refers to the clarity of the tasks required to complete a
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project. Higher task structure results in a more favorable situation. The more clear-cut and precise
tasks are, the higher the situation’s task structure—whereas the vaguer they are, the lower the
situation’s task structure. Finally, position power refers to the authority you have over your team as
a leader. If you can reward them, punish them, or tell them what to do, your position power is high.
As you can imagine, higher position power makes the situation more favorable (asana.com, 2022).
Rate your leader's experience using the scale below. According to this model, a higher score means
the leader is relationship-oriented in nature and a lower score means the leader is task-oriented in
nature.

Figure 2 Correlations between leader's LPC scores and group effectiveness

2. LPC Scale Applies In A Real Situation

VI. Appropriate management methods for BM Bank

1. Douglas McGregor's Theory X and Theory Y Management
In the 1960s, social psychologist Douglas McGregor developed two contrasting theories that
explain how managers' beliefs about what motivates their employees can influence their
management style. how. He named theories X and theory Y. These theories continue to be
important even today (mindtools.com, 2019).

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 In the case of theory X, managers adopt an authoritarian approach to motivate the employees
of the organization. It involves having a pessimistic opinion of team members and using a carrot and
stick approach. This technique involves persuading employees to complete their work by offering
incentives and punishing them if they cannot. In theory, managers believe that employees do not
enjoy work and are unmotivated. Therefore, the management of an organization must intervene
strongly to ensure employees perform their jobs. In other words, managers must motivate
subordinates through certain directives and monitor their efforts (Rutan Bhattacharyya, 2020).
In contrast to Theory X, Theory Y involves managers of an organization using a participative
management style to motivate their team members. In this case, managers have an optimistic view
of employees. They argue that addressing employee demotivation is possible through a
decentralized technique in which team relationships, collaboration and trust can be improved.
Unlike theory X, this theory explains that managers must fulfill self-, self-esteem, and social
demands to motivate their team members. It assumes that subordinates in a company enjoy their
work and seek responsibility. Furthermore, they can be self-directed and creative (Rutan
Bhattacharyya, 2020).

2. Applying Theory X and Theory Y Management to BM BANK

VII. Conclusion

VIII. Reference

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