This work uses Theory X and Theory Y to discuss the application in running AIESEC, a non-profit organization that provides leadership experience for students. According to Adetule (2011), Theory X assumes that employees are lazy and would refuse to work if they had a choice. This theory also assumes that employees must be led by strict managers who impose severe consequences if work is not done. The theory assumes that employees have no motivation and must be pushed by the management. It is effective in managing AIESEC because it is a large organization and employees often feel reluctant to work and spend their money. Management therefore needs to be strict on employees to ensure the survival and continuity of the organization.

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The managers must also assume that employees are not working willingly and thus must ensure constant and effective supervision. This means that they have to come up with goals and targets that will keep all employees on their toes. They must also ensure they have an effective communication and reporting system to be able to manage all the member committees from different countries in the world. AIESEC managers must ensure they are motivated so that they can motivate and encourage their employees. This means that unless managers are motivated, employees will lag behind and produce poor quality services to member countries of AIESEC. The success of the organization therefore depends on the managers efforts.

Theory Y assumes that employees are self-driven, ambitious and motivated. They are aggressive and take responsibilities with gladness and view these responsibilities as achievements. Employees are willing to work and make decisions as well take responsibility for these decisions. They are also committed to work and enjoy taking responsibility for achieving certain tasks in the organization. Managers who use this theory believe that employees are cooperative and willing to work, as long as the environment is favorable (Adetule, 2011). It is effective in an organization like AIESEC because managers have an easy time. Managers in AIESEC have to create trust in their employees and thus include them in decision making. The managers allow the employees to feel that they belong in the organization. Managers in AIESEC can make their work easier by letting employees work towards achieving the organization goals.

For effective management, it is essential that managers incorporate both theories. This is because employees may be motivated but lack of supervision makes them lazy. They will therefore end up becoming lazy and will pretend to start working when the supervisors are in sight. This means that the organization will not meet its objectives in time and will provide poor quality service. This means that managers in AIESEC must be able to provide their employees with the right working conditions. These conditions include trust, involving employees in decision making as well as delegating important tasks to the employees. The managers must however be careful to supervise employees as they carry out their responsibilities. This ensures that they provide quality services to member countries. Using theory X only creates a rift between employees and managers, which often leads to low productivity. In using theory Y only, creates too much familiarity between employees and managers and this compromises the quality of production and undermines the responsibility of management. Effective management requires a balance in the use of both theories.

AIESEC is a non-profit organization that has made it through the past 64 years. This is because he managers of the organization discovered the value of implementing both theories to ensure the success of the business. It has seen to the motivation of both employees and managers, and consequently the satisfaction of customers across the globe because of good quality service.