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Retaining its employees has become a business imperative for many companies. Appletree Answers has been able to retain its employees by using which of the following theories?Multiple ChoiceTheory ZGoal-setting theoryHerzberg’s theoryTheory XEquity theory

Question

Retaining its employees has become a business imperative for many companies. Appletree Answers has been able to retain its employees by using which of the following theories?Multiple ChoiceTheory ZGoal-setting theoryHerzberg’s theoryTheory XEquity theory

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Solution

To determine which theory Appletree Answers has used to retain its employees, let's briefly review each of the theories mentioned:

  1. Theory Z: This theory, developed by William Ouchi, emphasizes stable employment, high productivity, and high employee morale and satisfaction. It focuses on a strong company philosophy, a distinct corporate culture, long-term employment, and collective decision-making.

  2. Goal-setting theory: Proposed by Edwin Locke, this theory suggests that setting specific and challenging goals, along with appropriate feedback, contributes to higher and better task performance.

  3. Herzberg’s theory: Also known as the Two-Factor Theory, it distinguishes between hygiene factors (which can cause dissatisfaction if missing but do not necessarily motivate if increased) and motivators (which truly drive employees to perform better).

  4. Theory X: Developed by Douglas McGregor, this theory assumes that employees are inherently lazy and will avoid work if they can. It suggests that management must be authoritarian and control-oriented to ensure tasks are completed.

  5. Equity theory: Proposed by John Stacey Adams, this theory posits that employees are motivated by fairness. If they perceive an inequity in the input-to-output ratio compared to others, they will be demotivated.

Given the context of employee retention, the most likely theory that Appletree Answers has used is Theory Z. This theory focuses on long-term employment, collective decision-making, and a strong company culture, all of which are conducive to retaining employees.

Therefore, the correct answer is: Theory Z

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