MBA Management Notes, Theory X and Theory Y
In his 1960 book, the human side of the enterprise, Douglas McGregor proposed two theories for displaying the motivation of the employees. He avoided labels descriptive and simply called theory X and Theory Y. Both of these theories begin with the premise that management role is to bring together the factors of production, including people, for the economic benefit of the company. Beyond this point, the two theories of management diverge.
Theory X assumes that the average person:
Dislikes work and tries to avoid it.
Has no ambition and wants no responsibility would follow rather than lead.
Is self-centered and therefore cares not of organizational goals.
Resists change.
Is gullible and not particularly intelligent.
Essentially, the theory X assumes that people work only for money and security.
Theory X - difficult approach and flexible approach
Under the theory X management approaches vary from a difficult approach to a gentle approach.
The tough approach relies on coercion, implied threats, close monitoring and control, essentially a command and control environment. The flexible approach should be permissive and seek harmony with the hope that, in return, employees will cooperate when asked to do so. However, none of these extremes is optimal. The tough approach translates into hostility, intentionally low production and uncompromising requests Union. The results of the flexible approach in increasing requests for more rewards in Exchange for the steady decline in output of work.
The optimal management under the theory X approach would probably lie between these two extremes. However, McGregor said that no approach is because the theory X assumptions are not correct. The problem with the theory X
Based on Maslow's hierarchy, McGregor argued that a satisfied need motivates is no longer. Under the theory X cabinet relies on money and benefits to meet lower requirements of employees, and once these needs are met the source of motivation is lost. Theory X management styles actually obstacle to the satisfaction of the needs of higher level. Therefore, the only way that the employees may try to satisfy their needs higher level in their work is by seeking the highest, so it is quite predictable that they will focus on monetary awards. While the money is not the best way to personal development, in an environment of theory X, it may be the only way. Under the theory X, people use work to meet their lower needs and seek to satisfy their superior needs in their leisure time. But it is by responding to their superior needs that employees can be more productive.
McGregor argued that an environment of command and control is not effective, because it relies on lower needs such as levers of motivation, but in modern society, these needs are already being met and therefore are more motivated. In this case, one would expect employees do not like their work, avoid responsibility, have no interest in organizational goals, resist changes, etc., which makes the X theory a self-fulfilling prophecy. From this reasoning, McGregor has proposed an alternative: the theory Y.
Theory Y
Higher level of esteem and self-actualization needs are continuing needs since they are never completely satisfied. It is as such, these needs of higher level in which employees can better be motivated.
Theory makes the following general assumptions:
Work can be as natural to play and rest.
People will be self managed to achieve their goals of working when they are committed to them.
People seek their targets if awards are in place requiring an address higher such as personal development.
In these conditions, people will seek responsibility.
Most people can handle the responsibility because the creativity and ingenuity are common in the population.
Under these assumptions, it is possible to align personal goals with the objectives of the organization using the quest for the employee for the realization as the motivating factor. McGregor emphasized that the theory Y management does not imply a gentle approach.
McGregor acknowledged that some people might not have reached the level of maturity by the theory Y and so perhaps tighter controls which can be relaxed that the employee develops.
Theory Y Management Implications
If the theory holds, the ent
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