[6] Theory X is a "we versus they" approach, meaning it is the management versus the employees. The manager allows for collaborative decision-making and amicable relations within the organization or firm. employees are motivated mainly by the chance for advancement and recognition. His main ideas broke down into two options, Theory X and Theory Y. Enrolling in a course lets you earn progress by passing quizzes and exams. The Theory X leader assumes that the average individual dislikes work and is incapable of exercising adequate self-direction and self-control. McGregor acknowledged both types of managers as being a legitimate means of motivating employees, but he felt that you would get much better results through the use of Theory Y rather than Theory X. Hence, both theories used in moderation are key to good organization. The role of the Theory X manager is to coerce and control employees to work towards organizational goals. In 1960, Douglas McGregor published two theories (Theory X & Theory Y) of employee motivation based on the assumptions that managers make about employees. This judgement could say a lot about your style of management. One psychologist, Douglas McGregor, categorized people's motivations into two broad categories: Theory X and Theory Y. He mentioned Theory X and Theory Y in his book, The Human Side of Enterprise, published in 1960. As a member, you'll also get unlimited access to over 84,000 An error occurred trying to load this video. This style of leadership is seen as appropriate when circumstances require quick decisions and organizational members are new, inexperienced, or underqualified. [4] This allows the employee to design, construct, and publish their work in a timely manner in co-ordinance to their workload and projects. Intervention of the management is considered to be important to deal with passive, resistant workers. CRC Press; New York; pp. The permissive autocrat mixes his or her use of power by retaining decision-making power but permitting organizational members to exercise discretion when executing those decisions. This website helped me pass! Vassiliou, Marius, David S. Alberts, and Jonathan R. Agre (2015). However, high-involvement organizations frequently encourage their formal and informal leaders to exercise the full set of management roles. About 1015 years ago, power and leadership once again shifted, this time to people with finance and legal backgrounds, because the critical contingencies facing many organizations were mergers, acquisitions, hostile takeovers, and creative financing. Theory Y managers assume employees are internally motivated, enjoy their job, and work to better themselves without a direct reward in return. McGregor and Maslow respected each other and used each others theories in their work. Because managers and supervisors are in almost complete control of the work, this produces a more systematic and uniform product or work flow. McGregor makes the point that a command-and-control environment is not effective because it relies on lower needs for motivation, but in modern society those needs are mostly satisfied and thus are no longer motivating. Most people have little aptitude for creativity in solving organizational problems. As a result, they must be closely controlled and often coerced to achieve organizational objectives. Many startups and new organizations use Theory Y by using flexible deadlines and less controlling supervisors. Theory X managers are likely to believe that: a. the average employee dislikes work and will seek to avoid it when possible. The benefits of Theory Z, Ouchi claimed, would bereduced employee turnover, increasedcommitment, improvedmorale and job satisfaction, and drastic increases in productivity. A compliment or reward from a person we like generally has greater value than one from someone we dislike, and punishment from someone we love (such as tough love from a parent) is less offensive than the pain inflicted by someone we dislike.31. To McGregor, a steady supply of motivation seemed more likely to occur underTheory Y management. Practically all managers act as formal leaders as part of their assigned role. Dec 12, 2022 OpenStax. [7] Implementing a system that is too soft could result in an entitled, low-output workforce. In contrast, Theory Y leaders believe that people have creative capacities, as well as both the ability and desire to exercise self-direction and self-control. The managers influenced by Theory X believe that everything must end in blaming someone. They can be motivated internally to complete their tasks and not always need supervision or micromanaging. He wrote on leadership as well. They are not lazy at all. In many instances, people are put into positions of leadership by forces outside the group. d. job satisfaction is primarily related to higher-order needs. Theory Y, on the other hand, presents a positive view of human . Proc. A manager dealing with a group of experts would likely use this theory and give them freedom and space to work. It refers to the management style that follows a more participative, interactive and optimistic approach. Known as an influential figure in management theory, organizational communication, and organizational studies, Douglas McGregor was a professor at Massachusetts Institute of Technology, where he was a vocal advocate of the human relations approach. Theory Y results in an arrangement whereby individuals can achieve their own goals and happily accomplish the organizations goals at the same time. Since workers are given much more time to receive training, rotate through jobs, and master the intricacies of the companys operations, promotions tend to be slower. Accept work as a normal part of their day, and it's right next to recreation and rest. Theory Y managers appeal to a higher level of motivation on Maslows famous Hierarchy of Needs, capitalizing on the human need for esteem and self-actualization. Jack Welch was the formal leader of General Electric, and Leonard Bernstein was the formal leader of the symphony. They are self-centered and care only about themselves and not the organization or its goals, making it necessary for a manager to coerce, control, direct or threaten with punishment in order to get them to work towards organizational goals. This theory is also likely to be used when the work in the organization is repetitive and employees are likely to get bored and need some control. This approach is usually taken by managers working in older companies and firms. It is possible that the originator, and subsequent researchers, of these contrasting theories did not place much emphasis on these attributes as being inherent in humans, but workplace reality suggests these two distinct facts are real. Some people prefer micromanaging and leading, and some people prefer giving space. This book uses the Are inherently lazy, lack. McGregor stressed that Theory Y management does not imply a soft approach. and you must attribute OpenStax. He explained this concept in his book "The Human side of Enterprise". When I say X, I don't mean the type that marks a treasure - in fact, quite the opposite is true. I see Theory X and Theory Y as two natural divisions of people; groupings into those who dislike working and those who are inclined to working without persuasion. Think about a conveyor belt of automotive parts with workers and machines lined side by side, each tasked with applying a specific skill to the production processtightening a bolt, applying a hinge, taping up a box to be shipped, etc. Work can be as natural as play if the conditions are favorable. While Theory X managers may be suited for some process-driven organizations, a more practical management style today is that of a Theory Y thinker. McGregor cautioned both types of managers against what he called self-fulfilling prophecies, whereby an employee will act just as the manager assumed he or she would due to the manager's own actions and behaviors. It suggests that there are two approaches to managing people. Theory X managers are likely to believe that: A. the average person dislikes work and will seek to avoid it when possible. Both sides seek to satisfy some personal pleasures and needs. consent of Rice University. Just like formal leaders, informal leaders can benefit or harm an organization depending on whether their influence encourages group members to behave consistently with organizational goals. As such, McGregor acknowledged both types of managers as being a legitimate means of motivating employees, but he felt that you would get much better results through the use of Theory Y rather than Theory X. Douglas McGregor believed that there were two types of managers: Theory X and Theory Y. The answer often is that a leaders social influence is the source of his power. Also, participative decision-making may not always be feasible or successful due to the nature of the work or the willingness of the workers. The employees are full of potential, and it is through their own creativity, ingenuity and imagination that organizational goals are met. Most people can handle responsibility because creativity and ingenuity are common in the population. They were created by Douglas McGregor while he was working at the MIT Sloan School of Management in the 1950s, and developed further in the 1960s. The result was Theory Za developmentbeyond Theory X and Theory Y thatblended the best of Eastern and Western management practices. Theory X managers are likely to believe that employees are lazy, fear-motivated, and in need of constant direction. As a result, they think that employees need to be prompted, rewarded or punished regularly to make sure that they perform their tasks. As we have noted, the terms leader and manager are not synonymous. As a consequence, they exert a highly controlling leadership style. 147 lessons Our mission is to improve educational access and learning for everyone. [2], McGregor's Theory X and Theory Y and Maslow's hierarchy of needs are both rooted in motivation theory. Leaders who rely on reward power develop followers who are very measured in their responses to [what? It views job rotations and continual training as a means of increasing employees knowledge of the company and its processes while buildinga variety of skills and abilities. Except where otherwise noted, textbooks on this site Leaders who rely solely on their legitimate power and authority seldom generate the influence necessary to help their organization and its members succeed. A formal leader is that individual who is recognized by those outside the group as the official leader of the group. "Mission Command and Agile C2." Theory Zalso makes assumptions about company culture. A Theory X management style may be well-suited for this type of structured, process-driven workplace. Theory X management is substantially a matter of crafting positive and negative incentives, such as bonuses or other rewards for meeting targets, or progressive discipline for falling short, which may include remedial training. As a result, they think that team members need to be prompted, rewarded or punished constantly to make sure that they complete their tasks. Hi, As soon as that need is satisfied, the employees have no additional motivation for coming to work. While there is a more personal and individualistic feel, this leaves room for error in terms of consistency and uniformity. He focused on employees basic needs during the formulation of Theory X whereas during the making of Theory Y, higher needs from the hierarchy of needs model were utilized. Managers give employees some free space and flexibility to work. The worker is assumed to be immature and viewed as being very gullible. This theory is hinged on the idea that employees need strict guidance and tight management regarding assignments, and specific consequences for failing to meet company expectations. The Japanese had discovered something that was givingthem the competitive edge. What might be less immediately understandable are the differing effects of Theory X and Y on resulting behavior and productivity. But how do leaders effectively exercise this influence? McGregor called this Theory X. most employees know more about their job than the bossd. Try refreshing the page, or contact customer support. It helped me pass my exam and the test questions are very similar to the practice quizzes on Study.com. How do leaders influence and move their followers to action? [12] On the contrary, managers who choose the Theory Y approach have a hands-off style of management. This type of structured, process-driven workplace managers act as formal leaders part! Meaning it is the management style may be well-suited for this type of structured, process-driven workplace a... Western management practices & quot ; Theory and give them freedom and space to work towards organizational goals are.... Assigned role ; the Human Side of Enterprise, published in 1960 leader of work! 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