Evidence suggests that managers from different parts of the global community commonly hold the same view. Douglas McGregor was a management professor at Massachusetts IT university, Cambridge in the 1950s, and published a few articles and books as well. These differing management styles have been coined in the academic management community as Theory X and Theory Y. Lets break each down and see how they apply in the workplace. They are inherently lazy, lack ambition and prefer to be directed on what to do rather than assume responsibility on their own. Theory X. McGregor (1960) proposed two models "Theory X and Theory Y", which he devised to describe two contrasting beliefs that managers hold about their paid workers. 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. Intervention of the management is considered to be important to deal with passive, resistant workers. Enlightened managers use Theory Y, which produces better performance and results, and allows people to grow and develop. Work in organizations that are managed like this can . An individual who was self- motivated was best left alone in a. It includes a trusting, collaborative and positive relationship between the manager and employees. What is the role of the leader and follower in the leadership process? During the 1980s, American business and industry experienceda tsunami of demand for Japanese products and imports, particularly in the automotive industry. Management believes employees' work is based on their own self-interest. It would be beneficial to use both theories in moderation to ensure productivity and discipline in an organization. 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. 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. Managerial Functions in the International Organization. CRC Press; New York; pp. They're full of potential, and it's through their own. Theory X refers to an authoritarian style and Theory Y refers to a participative/interactive style of managing employees. and you must attribute OpenStax. Organizations have two kinds of leaders: formal and informal. It follows the traditional route of direction and control. c. employees are motivated mainly by the chance for advancement and recognition. If you continue to use this site we will assume that you are happy with it. A manager dealing with a group of experts would likely use this theory and give them freedom and space to work. His ideas suggest that there are two fundamental approaches to managing people: Many managers tend toward Theory X and generally get poor results. Informal leaders are acknowledged by the group, and the group willingly responds to their leadership. Except where otherwise noted, textbooks on this site I would definitely recommend Study.com to my colleagues. Hence, both theories used in moderation are key to good organization. While there is a more personal and individualistic feel, this leaves room for error in terms of consistency and uniformity. They are not lazy at all. Much like a bomb, assumptions are a dangerous thing to make - just the slightest little mistake and you can end up blowing yourself up! D. Job satisfaction is mostly related to higher order needs. Employees additionally tend to take full responsibility for their work and do not need close supervision to create a quality product. Consider these assumptions from the different managerial styles: Most people find happiness in hard work under the right conditions. This is a participative management style that gives rise to a more collaborative work environment, whereas theory X leads to micromanaging. According to McGregor, Theory X managementassumes the following: Essentially, Theory X assumes that the primary source of employee motivation is monetary, with security as a strong second. The employees are full of potential, and it is through their own creativity, ingenuity and imagination that organizational goals are met. is based on negative assumptions regarding the typical worker. 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. McGregor called this Theory X. They need an interactive and safe environment with opportunities for growth, learning and creativity. Dec 12, 2022 OpenStax. One psychologist, Douglas McGregor, categorized people's motivations into two broad categories: Theory X and Theory Y. The Theory Y manager assumes that employees accept work as a normal part of their day right next to recreation and rest. Try refreshing the page, or contact customer support. Todays digital workplace, however, is a place of collaboration. As a member, you'll also get unlimited access to over 84,000 22nd International Command and Control Research and technology Symposium (ICCRTS). The managers influenced by Theory X believe that everything must end in blaming someone. Situational Leadership Theory & Styles | What is Situational Leadership? Motivation occurs only at the physiological and security levels of Maslows hierarchy of needs. 277. Read them well and, normally, they'll feel confident taking direction under the parameters of X and Y. They'll understand your expectations and feel motivated - those two things promote happiness at work and contribute to wellbeing. Plus, get practice tests, quizzes, and personalized coaching to help you [12] On the contrary, managers who choose the Theory Y approach have a hands-off style of management. The OpenStax name, OpenStax logo, OpenStax book covers, OpenStax CNX name, and OpenStax CNX logo Organizations that use self-managed work teams allow members of the team to select the individual who will serve as their team leader. Increasingly, leaders in organizations will be those who best sell their ideas on how to complete a projectpersuasiveness and inspiration are important ingredients in the leadership equation, especially in high-involvement organizations.22. Theory X managers are likely to believe that: A. the average person dislikes work and will seek to avoid it when possible. 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. Managers in newer organizations use this theory as now, people want more than monetary rewards and control. 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. [6] Managers who believe employees operate in this manner are more likely to use rewards or punishments as motivation. A manager who believes in Theory X could have assumptions that: McGregor termed these assumptions as Theory X assumptions of human nature. But how do leaders effectively exercise this influence? Hi, b. most employees know more about their job than the boss. Theory X vs Theory Y Managers| Douglas McGregor's Management Theory, Douglas McGregor's Motivation & Management Theories, Adair's Action-Centered Leadership Theory. Theory X managers tend to take a pessimistic view of their people, and assume that they are naturally unmotivated and dislike work. The latter theory proposes that employees and managers can achieve a collaborative and trust-based relationship. The Theory Y manager generally believes employees want responsibility and will perform up to expectations if given clear direction and goals. When employees rise to a higher level of management, it is expected that they will use Theory Z to bring up, train, and develop other employees in a similar fashion. Theory of X and Y is a theory on human work and motivation developed by Douglas McGregor. Based on these factors, it is easy to see how Theory X differs from Theory Y and easy to imagine their potential outcomes in the workplace. It is important to recognize that the traits possessed by certain individuals contribute significantly to their emergence as leaders. Lucidchart makes it easy to share processes, information, and ideas with a team from a single centralized location. As such, it is these higher-level needs through which employees can best be motivated. Theory X managers are likely to believe that employees are lazy, fear-motivated, and in need of constant direction. [8] As a result, Theory Y followers may have a better relationship with their boss, creating a healthier atmosphere in the workplace. As a Theory X manager, Xavier believes that his workers: Hate the idea of having to go to work and do so only to earn a paycheck and the security that it offers. http://www.envisionsoftware.com/articles/Theory_X.html, https://pixabay.com/en/idea-businessman-man-outline-suit-1460935/, http://vle.du.ac.in/mod/book/view.php?id=8344&chapterid=10377, CC BY-NC-SA: Attribution-NonCommercial-ShareAlike, https://commons.wikimedia.org/wiki/File:Toyota_Plant_Ohira_Sendai.jpg. Theory X is a management style and way of thinking that suggests people are purely motivated by earning income to support their personal goals. Most managers generally use the mixture of the two theories. Theory X Micromanagement is not looked at positively in todays scenario, leading to Theory Y being the most productive way of management. They tend to blame employees in most situations, without questioning the systems, policy, or lack of training which could be the real cause of failures. The Japanese had discovered something that was givingthem the competitive edge. Use this quiz to check your understanding and decide whether to (1) study the previous section further or (2) move on to the next section. Theory X management hinders the satisfaction of higher-level needs because it doesn't acknowledge that those needs are relevant in the workplace. The hard approach results in hostility, purposely low output, and extreme union demands. The theory X and Y leadership model was developed 50 years ago and has been validated by modern research. Leaders hold a unique position in their groups, exercising influence and providing direction. Yoko is a Theory Y manager, and when I say Y here, think 'why not.' The benefits of Theory Z, Ouchi claimed, would bereduced employee turnover, increasedcommitment, improvedmorale and job satisfaction, and drastic increases in productivity. d. job satisfaction is primarily related to higher order needs. O most employees know more about their job than the boss. They do not always need coercion, incentives or force to complete their work. Most people are not ambitious, have little desire for responsibility, and prefer to be directed. A lot of young entrepreneurs do not keep hierarchical within their company and believe in the willingness and interest of their employees. a Theory X Manager typically believes their staff: dislike their work / are lazy cannot be trusted need to be closely supervised / micro-managed dislike or avoid responsibility have no inherent incentive or desire to work lack ambition work only for pay or because they have to have to be driven by rewards or punishment 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. 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. An error occurred trying to load this video. Theory X and Theory Y Theory X and Theory Y represent two sets of assumptions about human nature and human behavior that are relevant to the practice of management. One assumption is that theyseek to build cooperative and intimate working relationships with their coworkers. In general, Theory X style managers believe their employees are less intelligent, lazier, and work solely for a sustainable income. Theory X managers believe all actions should be traceable to the individual responsible. 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. Also, participative decision-making may not always be feasible or successful due to the nature of the work or the willingness of the workers. Question: D Question 21 1 pts A manager who subscribes to Theory X believes in the importance of TQM that people prefer to be directed that people naturally seek out work in the contingency approach to management that people are committed to goals D Question 22 1 pts Theory X managers believe workers are O committed lazy happy needy O lucky Jack Welch was the formal leader of General Electric, and Leonard Bernstein was the formal leader of the symphony. Managers who assume employees are apathetic or dislike their work use theory X, which is authoritarian. These managers view their employees as one of the most valuable assets to the company, driving the internal workings of the corporation. He wrote on leadership as well. Accept work as a normal part of their day, and it's right next to recreation and rest. Research suggests that rationality is the most effective influence tactic in terms of its impact on follower commitment, motivation, performance, satisfaction, and group effectiveness.30. They think most employees are only out for themselves and their sole interest in the job is to earn money. [11], For McGregor, Theory X and Theory Y are not opposite ends of the same continuum, but rather two different continua in themselves. The hard approach to motivation relies on coercion, implicit threats, micromanagement, and tight controls essentially an environment of command and control. Yoko must also try to harness the motivational energy of her employees through things such as giving them more autonomy, responsibility, power, trust and feedback and involving them in the decision-making process. A directive autocrat retains power, makes unilateral decisions, and closely supervises workers activities. Lucidchart is the intelligent diagramming application that empowers teams to clarify complexity, align their insights, and build the futurefaster. Empirical evidence concerning the validity of Theory X and Theory Y, however, was mixed. Why were U.S. consumers clambering forcars, televisions, stereos, and electronics fromJapan? If a company wants to realize thebenefits described above, itneed to have the following: Theory Z is not the last word on management, however, as it does have its limitations. Under these conditions, people will seek responsibility. Human Relations Theory Overview & Timeline | What are Human Relations? Managers give employees some free space and flexibility to work. Occupational inequality is the unequal treatment of people based on gender, sexuality, height, weight, accent, or race in the workplace. B.most employees know more about their job than the boss. McGregors Theory X and Theory Y posits two different sets of attitudes about the individual as an organizational member.36 Theory X and Y thinking gives rise to two different styles of leadership. There are several ways to lead an organization and this theory allows fluidity. This allows the individual to receive either a direct reward or a reprimand, depending on the outcome's positive or negative nature. Good leaders, whether formal or informal, develop many sources of power. People will use work to satisfy their lower needs and seek to satisfy their higher needs during their leisure time. [4] Assumptions of Theory Y, in relation to Maslow's hierarchy put an emphasis on employee higher level needs, such as esteem needs and self-actualization. b.employees are motivated mainly by the chance for advancement and recognition. Most people can handle responsibility because creativity and ingenuity are common in the population. 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