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Explain Theory 'X'.
These theory is place forward by Douglas McGregor. It is based upon the management thinking containing certain assumptions about human nature and human behaviour.
This is fundamentally a negative approach to human relations wherein a supervisor presumes certain the assumptions that are:-
(a) The average person does not as to work and will ignore it when he can.
(b) For this reason, most persons should be coerced, controlled, threatened or directed with punishments so that they start putting efforts to achieve goals of the organisation.
(c) The average human being prefers to be directed, wishes to avoid responsibility has relatively little ambition and wants security above all. Therefore, employees must be punished constantly and threatened along with loss of security and other punishments if they do not produce.
Which of the following statements regarding service companies and activity-based costing (ABC) is true?
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