In the given scenario, theory Y will be implemented to turn the company around, because it is an approach that brings confidence among the workers, helps them realize their potential and motivates them to work to their own best level with synergy among each other. It helps employees to work as a cohesive unit where the workers have confidence in the leader and it drives the company out of trouble and increase the productivity. With an increase in productivity, the profit margin increases and profitability of the business increases as well. It makes a turnaround to happen, though it is a slow and progressive process. The real life example can be drawn from the Citigroup that incurred a huge loss of $10 Billion when the report came out in the January of 2008. It was the biggest setback to the Citigroup and, they made important changes in the management, while encouraging employees to work hard to help company recover. Though, the Citigroup had to become lean by withdrawing many risky exposures to become strong and profitable again. In another example, Nokia as a mobile phone manufacturer, started to become irrelevant when android based smart phones cam into the market. It made the company ( it is hardware division) to be acquired by Microsoft . It helped the company to bet a more dynamic management, upon that employees believed and turnaround started slowly, but progressively.
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