McGregor's X-Y theory is a salutary and simple reminder of the natural rules for managing people, which under the pressure of day-to-day business are all too easily forgotten. 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. Theory X is a management style and way of thinking that suggests people are purely motivated by earning income to support their personal goals. Consider these assumptions from the different managerial styles: Most people find happiness in hard work under the right conditions. O most employees know more about their job than the boss. 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. Theory Y, on the other hand, presents a positive view of human . Many leaders emerge out of the needs of the situation. Theory Z stresses the need to helpworkers become generalists, rather than specialists. then you must include on every digital page view the following attribution: Use the information below to generate a citation. Do you agree with Riya or Joseph? A manager who believes in Theory Y could have assumptions that: Too much freedom could lead to no accountability and people could lose direction and focus. Theory X managers believe all actions should be traceable to the individual responsible. C. employees are motivated mainly by the chance for advancement and recognition. Under Theory Z management, not only do workers have a sense of cohesion with their fellow workers, they also develop a sense of order, discipline, and a moral obligation to work hard. They are not lazy at all. Theory X and Y: An overview. On the other hand, if you believe that your people take pride in their work and see it as a challenge, then you'll more likely adopt a participative management style . Management use of Theory X and Theory Y can affect employee motivation and productivity in different ways, and managers may choose to implement strategies from both theories into their practices. Theory X managers are likely to believe that: a. the average employee dislikes work and will seek to avoid it when possible. A formal leader is that individual who is recognized by those outside the group as the official leader of the group. Leadership is also about having a vision and communicating that vision to others in such a way that it provides meaning for the follower.32 Language, ritual, drama, myths, symbolic constructions, and stories are some of the tools leaders use to capture the attention of their followers to be to evoke emotion and to manage the meaning of the task (challenges) facing the group.33 These tools help the leader influence the attitudes, motivation, and behavior of their followers. Theory X and Theory Y thinking and leadership are not strictly an American phenomenon. [7] The hard approach depends on close supervision, intimidation, and immediate punishment. The capacity for creativity spreads throughout organizations. A lot of young entrepreneurs do not keep hierarchical within their company and believe in the willingness and interest of their employees. Plus, get practice tests, quizzes, and personalized coaching to help you Question: Theory X managers are likely to believe thata. French and Raven provide us with a useful typology that identifies the sources and types of power that may be at the disposal of leaders: Not all forms of power are equally effective (see Exhibit 13.5), nor is a leaders total power base the simple sum of the powers at his disposal. Most people are self-centered. Employees are initially obedient, but eventually dissatisfied and even rebellious, driving down productivity and achieving contradictory outcomes, further reinforcing the belief that workers are lazy and have to be externally motivated. One view holds that in traditional organizations members expect to be told what to do and are willing to follow highly structured directions. In the 1960s, social psychologist Douglas McGregor developed Theory X and Theory Y to explain how managers' beliefs about what motivates their employees can influence their management style. The permissive democratic approach to leadership is characteristic of leadership in high-involvement organizations. He was particularly interested in what motivates people to work hard, in particular on what belief systems motivate people to work hard. The two theories divide employees; those that inherently dislike work and those that inherently do like work. Textbook content produced by OpenStax is licensed under a Creative Commons Attribution License . Decision making became centralized and control was established through a chain of command where workers were not being provided an opportunity to contribute to the process. Basically, Theory X managers believe that people don't want to work, don't enjoy working, and are only motivated by money. [4] This led companies to focus on how their employees were motivated, managed, and led, creating a Theory Y management style which focuses on the drive for individual self-fulfillment. Good leaders, whether formal or informal, develop many sources of power. They also dislike change and tend to resist it at all costs. Finally, the permissive democrat shares power with group members, soliciting involvement in both decision-making and execution. These managers tend to be more present in entry-level jobs where productivity and process are favored over independence or innovation, but they may show up at any company level and in any industry. These managers view their employees as one of the most valuable assets to the company, driving the internal workings of the corporation. People under Theory X believe that employees see their work as a burden and are lazy, so they tend to micromanage and control their performance and efforts. Theory of X and Y is a theory on human work and motivation developed by Douglas McGregor. It refers to the management style that believes in authoritarian and controlling behavior. Studies have shown that the Theory X style of management results in tight control, strict policies, and a punishment and rewards system that reinforces beliefs. McGregor and Maslow respected each other and used each others theories in their work. The power base in many organizations shifted to marketing as competition became a game of advertising aimed at differentiating products in the consumers mind. Employees additionally tend to take full responsibility for their work and do not need close supervision to create a quality product. This judgement could say a lot about your style of management. In modern days and times, Theory Y works more effectively. Motivation occurs only at the physiological and security levels of Maslows hierarchy of needs. Why were U.S. consumers clambering forcars, televisions, stereos, and electronics fromJapan? is based on negative assumptions regarding the typical worker. "C2 Re-Envisioned: the Future of the Enterprise." A directive autocrat retains power, makes unilateral decisions, and closely supervises workers activities. This suggests that a leader may use and employ power in a variety of ways. Very few practice either being autocratic or democratic completely. Get unlimited access to over 84,000 lessons. Most managers generally use the mixture of the two theories. They are not inherently irresponsible or lazy. The employee dislikes working, is not motivated enough and thus avoids working, whenever there is an opportunity. 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. Theory X is a common management method that focuses on supervision and strict monitoring of employees. Project Management. These theories have become the reference point for various approaches to the issues of human resource administration and organisation. Lucidchart makes it easy to share processes, information, and ideas with a team from a single centralized location. A crisis could also demand more control and thus, this theory can come in handy. Here, managers see employees as lazy and not proactive towards their work. 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. You may, however, find that you naturally favor one over the other. A variety of processes help us understand how leaders emerge. Are self-centered and care only about themselves and not the organization (or its goals), making it necessary for the manager to coerce, control, direct or threaten with punishment in order to get them to work towards organizational goals. This style is appropriate when participation has both informational and motivational value, when time permits group decision-making, when group members are capable of improving decision quality, and when followers are capable of exercising self-management in their performance of work. He explained this concept in his book "The Human side of Enterprise". Often, the formal leader is appointed by the organization to serve in a formal capacity as an agent of the organization. When I say X, I don't mean the type that marks a treasure - in fact, quite the opposite is true. The hard approach to motivation relies on coercion, implicit threats, micromanagement, and tight controls essentially an environment of command and control. If you agree with Joseph, you will likely agree with Theory X, which refers to a more authoritarian style of managing. What might be less immediately understandable are the differing effects of Theory X and Y on resulting behavior and productivity. 17 chapters | Practically all managers act as formal leaders as part of their assigned role. Implementing a Theory Y-focused leadership approach requires modern tools that can complement the collaborative workplace. Also, participative decision-making may not always be feasible or successful due to the nature of the work or the willingness of the workers. It suggests that there are two approaches to managing people. Theory X. citation tool such as, Authors: David S. Bright, Anastasia H. Cortes. Both theories are mostly used as a mixture in organizations and workplaces. [6] Managers who believe employees operate in this manner are more likely to use rewards or punishments as motivation. Jeff Bezos, founder and CEO of Amazon, used to bring an empty chair to meetings to signal and remind participants of the most important people that did not have a seat at the table: the customers. Are inherently lazy, lack. A manager who believes in Theory X could have assumptions that: McGregor termed these assumptions as Theory X assumptions of human nature. Creativity and problem-solving thrive when employees are trusted. the average person dislikes work and will seek to avoid it when possible. 219.Theory X managers are likely to believe that: A. the average person dislikes work and will seek to avoid it when possible. In general, Theory X style managers believe their employees are less intelligent, lazier, and work solely for a sustainable income. Its like a teacher waved a magic wand and did the work for me. The employees could prefer responsibility and show willingness, depending on their traits. Pacesetting Leadership: What It Is and When to Use It, 3 Leadership Principles to Foster Team Success, The 4 phases of the project management life cycle, The go-to toolkit for effortless documentation. 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. Drawing on Maslows hierarchy of needs, McGregor argues that a need, once satisfied, no longer motivates. Informal leaders, by contrast, are not assigned by the organization. Most people have little aptitude for creativity in solving organizational problems. Older, strictly hierarchical conceptions of C2, with narrow centralization of decision rights, highly constrained patterns of interaction, and limited information distribution tend to arise from cultural and organizational assumptions compatible with Theory X. 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. A Theory X management style may be well-suited for this type of structured, process-driven workplace. This is a positive view of the nature of workers. Douglas McGregor was a management professor at Massachusetts IT university, Cambridge in the 1950s, and published a few articles and books as well. People will use work to satisfy their lower needs and seek to satisfy their higher needs during their leisure time. A group often turns to the member who possesses the knowledge, skills, and abilities that the group requires to achieve its goals.25 People surrender their power to individuals whom they believe will make meaningful contributions to attaining group goals.26 The individual to whom power is surrendered is often a member of the group who is in good standing. Ouchis theory first appeared in his 1981 book, Theory Z: How American Management Can Meet the Japanese Challenge. This style of leadership is seen as appropriate when circumstances require quick decisions and organizational members are new, inexperienced, or underqualified. He mentioned Theory X and Theory Y in his book, The Human Side of Enterprise, published in 1960. He wrote on leadership as well. It can be difficult for organizations and employees to make life-time employment commitments. 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. However, McGregor asserts that neither approach is appropriate, since the basic assumptionsof Theory X are incorrect. However, high-involvement organizations frequently encourage their formal and informal leaders to exercise the full set of management roles. Theory Y managers believe employees would be motivated to meet goals in the absence of organizational controls, given favorable conditions. Most people are not ambitious, have little desire for responsibility, and prefer to be directed. People come to leadership positions through two dynamics. Goal-Setting Theory in Management: Definition & Examples, Five Dimensions of Trustworthy Leadership, Herzberg Two-Factor Theory | Hygiene Factors & Motivation. Some employees may take advantage of this freedom and not meet their work objectives. Douglas McGregor introduced Theory X and Theory Y to explain different styles of management. His main ideas broke down into two options, Theory X and Theory Y. She also holds three degrees including communications, business, educational leadership/technology. At Quad/Graphics, president Harry V. Quadracci is a permissive democrat because he encourages all Quad employees to play a major role in decision-making and execution as they manage their teams as independent profit centers. Here, managers see employees as responsible and proactive. As a result of this members contributions to the groups goals, he has accumulated idiosyncrasy credits (a form of competency-based status). An optimal managerial style would help cultivate worker creativity, insight, meaning and moral excellence. Where a Theory X manager might threaten loss of employment in order to get employees to work on a Saturday, a Theory Y manager might appoint a temporary leadership title to anyone who chooses to show up to work on a Saturday. The role of the Theory X manager is to coerce and control employees to work towards organizational goals. job satisfaction is primarily related to higher-order needs. They are not lazy at all. McGregor proposed that there were two types of managers: ones who assumed a negative view of their employees, also known as the Theory X managers, and others who assumed a positive view of workers, or the Theory Y managers. Once surgery begins, however, the surgeon is completely in charge. "Theory X and Theory Y, Douglas McGregor", "Employee Management: Are You X or Are You Y", "Theory X and Theory Y: Understanding People's Motivations", A diagram representing Theory X and Theory Y, Another diagram representing Theory X and Theory Y, https://en.wikipedia.org/w/index.php?title=Theory_X_and_Theory_Y&oldid=1136635549, Creative Commons Attribution-ShareAlike License 3.0, This page was last edited on 31 January 2023, at 10:10. 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. https://openstax.org/books/principles-management/pages/1-introduction, https://openstax.org/books/principles-management/pages/13-3-leader-emergence, Creative Commons Attribution 4.0 International License. ] managers who believe employees would be motivated to meet goals in consumers! 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