He mentioned Theory X and Theory Y in his book, The Human Side of Enterprise, published in 1960. Theory X managers are likely to believe that employees are lazy, fear-motivated, and in need of constant direction. People are motivated when they find value in their contributions and see an opportunity to realize their own potential. In actual practice, most managers today practice a combination of Theory X and Theory Y styles of management. 1999-2023, Rice University. The control and coercion involved in this style of management could lead to employee frustration, de-motivate employees and damage relationships within the organization. His main ideas broke down into two options, Theory X and Theory Y. Coercive power can result in favorable performance, yet follower and resistance dissatisfaction are not uncommon. Theory Y managers are likely to believe that employees are motivated by the value of their contribution. The informal leader is that individual whom members of the group acknowledge as their leader. His ideas gained most of their momentum in the 1960s, when the American and Western workforce was at a crucial transition from factory work of the Industrial Revolution to more collaborative technology-centered teamwork, aided no doubt by the Womens Labor Movement and the dawn of computing technology. 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. Employees are given rewards and incentives, prompted, punished, coerced or forced into working. [2], McGregor's Theory X and Theory Y and Maslow's hierarchy of needs are both rooted in motivation theory. Douglas McGregor was a management professor at Massachusetts IT university, Cambridge in the 1950s, and published a few articles and books as well. Theory Y managers believe that _____. In general, Theory X style managers believe their employees are less intelligent, lazier, and work solely for a sustainable income. It can be difficult for organizations and employees to make life-time employment commitments. It follows the traditional route of direction and control. Theory X assumes that people dislike work and will avoid doing anything they don't have to do. The latter theory proposes that employees and managers can achieve a collaborative and trust-based relationship. "Mission Command and Agile C2." Vassiliou, Marius, David S. Alberts, and Jonathan R. Agre (2015). 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. As a consequence, they exert a highly controlling leadership style. Theory X management hinders the satisfaction of higher-level needs because it doesn't acknowledge that those needs are relevant in the workplace. Although Theory Y encompasses creativity and discussion, it does have limitations. C. employees are motivated mainly by the chance for advancement and recognition.D. B.most employees know more about their job than the boss. It is also used in unskilled labor organizations or production firms. [13], Theory X and Theory Y also have implications in military command and control (C2). B. most workers know more about their job than the boss. This is a negative view of the nature of workers. An optimal managerial style would help cultivate worker creativity, insight, meaning and moral excellence. Social or (interpersonal) influence is ones ability to effect a change in the motivation, attitudes, and/or behaviors of others. Theory Xmanagement hinders the satisfaction of higher-level needs because it doesnt acknowledge that those needs are relevant in the workplace. People will be committed to their quality and productivity objectives if rewards are in place that address higher needs such as self-fulfillment. Theory X explains the importance of heightened supervision, external rewards, and penalties, while Theory Y highlights the motivating role of job satisfaction and encourages workers to approach tasks without direct supervision. 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 capacity for creativity spreads throughout organizations. Much like a bomb, assumptions are a dangerous thing to make - just the slightest little mistake and you can end up blowing yourself up! Both theories are mostly used as a mixture in organizations and workplaces. In this situation, one would expect employees to dislike their work, avoid responsibility, have no interest in organizational goals, resist change, etc.creating, in effect, a self-fulfilling prophecy. McGregor stressed that Theory Y management does not imply a soft approach. Question: Theory X managers are likely to believe thata. Some employees may take advantage of this freedom and not meet their work objectives. Theory X managers tend to take a pessimistic view of their people, and assume that they are naturally unmotivated and dislike work. If you agree with Joseph, you will likely agree with Theory X, which refers to a more authoritarian style of managing. Try refreshing the page, or contact customer support. Finally, the permissive democrat shares power with group members, soliciting involvement in both decision-making and execution. Project Management. then you must include on every digital page view the following attribution: Use the information below to generate a citation. Practically all managers act as formal leaders as part of their assigned role. However, high-involvement organizations frequently encourage their formal and informal leaders to exercise the full set of management roles. 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. 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. Typically, managers who apply theory X are more authoritarian. Accept work as a normal part of their day, and it's right next to recreation and rest. A lot of young entrepreneurs do not keep hierarchical within their company and believe in the willingness and interest of their employees. 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. Organizations have two kinds of leaders: formal and informal. One psychologist, Douglas McGregor, categorized people's motivations into two broad categories: Theory X and Theory Y. Work can be as natural as play if the conditions are favorable. It would be beneficial to use both theories in moderation to ensure productivity and discipline in an organization. Informal leaders, by contrast, are not assigned by the organization. This is a participative management style that gives rise to a more collaborative work environment, whereas theory X leads to micromanaging. employees are motivated mainly by the chance for advancement and recognition. Gerald Salancik and Jeffrey Pfeffer observe that power to influence others flows to those individuals who possess the critical and scarce resources (often knowledge and expertise) that a group needs to overcome a major problem.24 They note that the dominant coalition and leadership in American corporations during the 1950s was among engineers, because organizations were engaged in competition based on product design. Theory X managers tend to take a pessimistic view of their people, and assume that they are naturally unmotivated and dislike work. 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. They are not lazy at all. It includes a trusting, collaborative and positive relationship between the manager and employees. Learn about motivation in the workplace . Both sides seek to satisfy some personal pleasures and needs. They do not always need coercion, incentives or force to complete their work. They are not lazy at all. Theory Y leaders are much more likely to adopt involvement-oriented approaches to leadership and organically designed organizations for their leadership group. Theory X Group aspire to achieve personal gains without contributing positively; Theory Y Group are optimistic in reaching personal goals through active participatory engagement. As soon as that need is satisfied, the employees have no additional motivation for coming to work. Implementing a Theory Y-focused leadership approach requires modern tools that can complement the collaborative workplace. 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. Two reasons: (1) high-quality products and (2) low prices. 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. Henry comes to work regularly on time and his performance has been consistent. 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. the average person dislikes work and will seek to avoid it when possible. McGregor recognized that some people may not have reached the level of maturity assumed by Theory Y and may initially need tighter controlsthat can be relaxed as the employee develops. 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Theory X managers tend to take a pessimistic view of their people, and assume that they are naturally unmotivated and dislike work. Ouchis Theory Z makes certain assumptions about workers. Back in the 1950s and 60s, MIT School of Management student Douglas McGregor published a theory on different types of workers. However, employees can be most productive when their work goals align with their higher-level needs. Theory X is a common management method that focuses on supervision and strict monitoring of employees. He would try to constantly control the employees, leading to resentment and exhaustion in the employees, leading to a turnover. Power, then, essentially answers the how question: How do leaders influence their followers? Discover each theory and the respective qualities of each, as well as how self-fulfilling prophecies come into play for managers. It is believed that managers who adopted theory X produce poor results while managers who take theory Y are likely to deliver better . Consider these assumptions from the different managerial styles: Most people find happiness in hard work under the right conditions. During the 1980s, American business and industry experienceda tsunami of demand for Japanese products and imports, particularly in the automotive industry. The Theory Y managers believe their role is to help develop an employee's potential so that s/he can work towards common organizational goals. 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. This paper addresses both theories X and Y of Mc Gregor in economic crisis, where X is the one that might get the poor results focusing on instrumental, physiological values comparing to theory Y where managers are effective . Most people are not ambitious, have little desire for responsibility, and prefer to be directed. Douglas McGregor introduced Theory X and Theory Y to explain different styles of management. This theory supports threatening supervisory power. This allows the individual to receive either a direct reward or a reprimand, depending on the outcome's positive or negative nature. He would hierarchically arrange the job roles with several supervisors for different departments, looking over employees. People will use work to satisfy their lower needs and seek to satisfy their higher needs during their leisure time. Many consider such actions necessary for self-managing work teams to succeed. A ) 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. Athletic teams often have informal leaders, individuals who exert considerable influence on team members even though they hold no official, formal leadership position. Very few practice either being autocratic or democratic completely. Interactive, participative style of managing. 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. Theory X holds a pessimistic view of employees in the sense that they cannot work in the absence of incentives. The company usesmonetary rewards and benefits to satisfy employees lower-level needs. Human Relations Theory Overview & Timeline | What are Human Relations? Managers who choose the Theory X approach have an authoritarian style of management. The two theories divide employees; those that inherently dislike work and those that inherently do like work. Theory Y managers, on the other hand, are more optimistic. X managers is an impediment to employee morale and productivity X managers believe it is his/her job to structure the work and energize, even coerce (threaten with punishment) the. Most people have little aptitude for creativity in solving organizational problems. As a result, they think that team members need to be prompted, rewarded or punished constantly to make sure that they complete their tasks. We refer to this person as the designated leader (in this instance the designated and formal leader are the same person). Many writers and researchers have explored how leaders can use power to address the needs of various situations. 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. 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. According to the Theory of X and Y, there are 2 categories of managers . [8] This approach is derived from Fred Fiedler's research over various leadership styles known as the contingency theory. This is a positive view of the nature of workers. Basically, Theory X managers believe that people don't want to work, don't enjoy working, and are only motivated by money. Each assumes that the managers role is to organize resources, including people, to best benefit the company. Evidence suggests that managers from different parts of the global community commonly hold the same view. B. most employees know more about their job than the boss. As a member, you'll also get unlimited access to over 84,000 Work is inherently distasteful to most people, and they will attempt to avoid work whenever possible. Work is inherently distasteful to most people, and they will attempt to avoid work whenever possible. Theory Y, on the other hand, holds an optimistic opinion of employees. As the old saying goes, 'be careful what you wish for, because you just might get it.' So they must be controlled and coerced to get the job done. The hard approach to motivation relies on coercion, implicit threats, micromanagement, and tight controls essentially an environment of command and control. [3] According to Maslow, a human is motivated by the level they have not yet reached, and self-actualization cannot be met until each of the lower levels has been fulfilled. Theory X managers are likely to believe that: Answer 17) a. the average employee dislikes work and will seek to avoid it when possible. Theory X vs Theory Y Managers| Douglas McGregor's Management Theory, Douglas McGregor's Motivation & Management Theories, Adair's Action-Centered Leadership Theory. In order to achieve the most efficient production, a combination of both theories may be appropriate. Informal leaders are acknowledged by the group, and the group willingly responds to their leadership. The Situational Leader: Overview & Examples | What is a Situational Leader? Another assumption is that workers expect reciprocity and support from the company. In fact, when proper motivations and rewards are in place, employees are not only willing but purposely driven to seek out responsibility and challenges on their own. Managers following Theory Y believe that employees are willing to work and put effort into their performances. copyright 2003-2023 Study.com. Most employees know more about their job than the boss. 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