Most managers will likely use a mixture of Theory X and Theory Y. C. employees are motivated mainly by the chance for advancement and recognition. 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. Good leaders, whether formal or informal, develop many sources of power. Most managers generally use the mixture of the two theories. The Japanese had discovered something that was givingthem the competitive edge. [3] Maslow's hierarchy of needs consists of physiological needs (lowest level), safety needs, love needs, esteem needs, and self-actualization (highest level). We refer to this person as the designated leader (in this instance the designated and formal leader are the same person). 1999-2023, Rice University. You might, for instance, have a tendency to micromanage or, conversely, you may prefer to take a more hands-off approach. This judgement could say a lot about your style of management. Theory Y, on the other hand, presents a positive view of human . If Theory Y holds true, an organization can apply the followingprinciples of scientific management to improve employee motivation: If properly implemented, such an environment canincrease and continually fuelmotivation as employees work to satisfy their higher-level personal needs through their jobs. Yoko is a Theory Y manager, and when I say Y here, think 'why not.' 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. 147 lessons Leaders hold a unique position in their groups, exercising influence and providing direction. | 10 This is a positive view of the nature of workers. In fact, most work groups contain at least one informal leader. This style of leadership is seen as appropriate when circumstances require quick decisions and organizational members are new, inexperienced, or underqualified. Advertising, Public relations, Marketing and Consumer Behavior, Psychology, Behavioral And Social Science. As a result, they think that employees need to be prompted, rewarded or punished regularly to make sure that they perform their tasks. 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. Organizations that use self-managed work teams allow members of the team to select the individual who will serve as their team leader. [1] McGregor's work was rooted in motivation theory alongside the works of Abraham Maslow, who created the hierarchy of needs. Behavior management theorist Douglas McGregor posited Theory X and Theory Y which hold that there are two types of managers: ones who assume a positive view of their workers, and ones who assume a negative view. job satisfaction is primarily related to higher-order needs. [6] Managers who believe employees operate in this manner are more likely to use rewards or punishments as motivation. Theory X assumes that people dislike work and will avoid doing anything they don't have to do. Consider these assumptions from the different managerial styles: Most people find happiness in hard work under the right conditions. Theory X can benefit a work place that utilizes an assembly line or manual labor. Theory X managers are likely to believe that: Answer 17) a. the average employee dislikes work and will seek to avoid it when possible. Establish coaching to help team leaders . It would be beneficial to use both theories in moderation to ensure productivity and discipline in an organization. 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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. [4] McGregor's perspective places the responsibility for performance on managers as well as subordinates.[5]. They need an interactive and safe environment with opportunities for growth, learning and creativity. Because employees have historically been given a flat exchange of time and energy for income, workplace incentives have often been rooted in a fear of loss of employment, in earning potential from extra productivity, or in acquiescing to managerial dominance for promotion. The hard approach to motivation relies on coercion, implicit threats, micromanagement, and tight controls essentially an environment of command and control. Douglas McGregor's Theory X and Theory Y. Theory X and Y: An overview. Theory Y managers gravitate towards relating to the worker on a more personal level, as opposed to a more conductive and teaching-based relationship. 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. The permissive democratic approach to leadership is characteristic of leadership in high-involvement organizations. Dec 12, 2022 OpenStax. We recommend using a 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. The higher-level needs of esteem and self-actualization are ongoingneeds that, for most people, are never completely satisfied. Although born and educated in America, Ouchi was of Japanese descent and spent a lot of time in Japan studying the countrys approachto workplace teamwork and participative management. A variation on this theme is the concept of situational leadership, which advocates using different styles of management in different circumstances. Under Theory X, one can take a hard or soft approach to getting results. As the old saying goes, 'be careful what you wish for, because you just might get it.' Thus, Salancik and Pfeffer reason that power and thus leadership flow to those individuals who have the ability to help an organization or group [overcome its critical contingencies]. Leonard Bernstein was part of the symphony, but his role as the New York Philharmonic conductor differed dramatically from that of the other symphony members. Business Case Study: Apple's Management Style, Henri Fayol's Principles of Management | Summary & Explanation, Marginal Tax Rate Concept & Formula | How to Calculate Marginal Tax Rate, Decision Making Skills & Techniques | How to Improve Decision Making. In general, Theory X style managers believe their employees are less intelligent, lazier, and work solely for a sustainable income. He referred to these opposing motivational methods as Theory X and Theory Y management. 9899. An organization with this style of management is made up of several levels of supervisors and managers who actively intervene and micromanage the employees. The manager would use promotions, incentives, the threat of firing or cutting off pay to motivate employees to put effort or work. Reason In theory X, the manager believes that employees are lazy, and they avoid doing work properly. Most people are not ambitious, have little desire for responsibility, and prefer to be directed. Sometimes these powers lead to follower performance and satisfaction, yet they also sometimes fail. Another colleague, Joseph, sees him as a worker who performs just for the sake of money. Plus, get practice tests, quizzes, and personalized coaching to help you The idea that a managers attitude has an impact on employee motivation was originally proposed by Douglas McGregor,a management professor at the Massachusetts Institute of Technology during the 1950s and 1960s. A directive autocrat retains power, makes unilateral decisions, and closely supervises workers activities. Although both styles of management can motivate people, the success of each will largely depend on your team's needs and wants and your . This unique platform allows team leaders to share visuals with teammates, work together on projects in real time, comment on documents and project updates, and work collaboratively with up-to-the-minute feedback. All rights reserved. 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. A lot of young entrepreneurs do not keep hierarchical within their company and believe in the willingness and interest of their employees. 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. He wrote on leadership as well. A Theory X management style may be well-suited for this type of structured, process-driven workplace. Managers who choose the Theory X approach have an authoritarian style of management. B employees are primarily motivated by opportunities for advancement and recognition. 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Peopleare motivated by money and fears about their job security. This generally involves a more 'hands-on' approach and inevitably micromanaging your team's workload to ensure it is done to . He was one of the most impactful, popular writers in the management field and is credited for modern management thinking. B. most employees know more about their job than the boss. Elton Mayo's Theory of Management |Overview & History, Charisma in Leadership | Charismatic Examples & Theory. Managers who assume employees are apathetic or dislike their work use theory X, which is authoritarian. So grab your bomb repellent while we explore these two different types of managers by discussing the assumptions of each. If you are redistributing all or part of this book in a print format, [11], For McGregor, Theory X and Theory Y are not opposite ends of the same continuum, but rather two different continua in themselves. People under Theory Y believe. Theory X holds a pessimistic view of employees in the sense that they cannot work in the absence of incentives. 22nd International Command and Control Research and technology Symposium (ICCRTS). Managers following Theory Y believe that employees are willing to work and put effort into their performances. the average person dislikes work and will seek to avoid it when possible. Because managers and supervisors are in almost complete control of the work, this produces a more systematic and uniform product or work flow. Accept work as a normal part of their day, and it's right next to recreation and rest. It is also used in unskilled labor organizations or production firms. The capacity for creativity spreads throughout organizations. However, McGregor asserts that neither approach is appropriate, since the basic assumptionsof Theory X are incorrect. In the process of building their power base, effective leaders have discovered that the use of coercive power tends to dilute the effectiveness of other powers, while the development and use of referent power tends to magnify the effectiveness of other forms of power. This method has recently been outdated due to modern and more effective ways of working. He would try to constantly control the employees, leading to resentment and exhaustion in the employees, leading to a turnover. 5. 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. Power, then, essentially answers the how question: How do leaders influence their followers? Therefore, Xavier believes his role as a manager is to coerce and control his employees to work towards organizational goals. But how do leaders effectively exercise this influence? 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. This theory supports threatening supervisory power. The employees could find their work fulfilling as well as challenging. Theory X managers believe employees must be controlled to meet organizational goals. According to Theory Z, people want tomaintain a work-life balance, and they value a working environment in which things like family, culture, and traditions are considered to be just as important as the work itself. Lucidchart makes it easy to share processes, information, and ideas with a team from a single centralized location. Project Management. Sherri has taught college business and communication courses. They think most employees are only out for themselves and their sole interest in the job is to earn money. 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. Managers following Theory X can be pessimistic and orthodox in their approach and be prone to assume that employees are not interested in their work and need to be pushed. Theory X: The Authoritarian Boss. The latter theory proposes that employees and managers can achieve a collaborative and trust-based relationship. As a Theory X manager, Xavier believes that his workers: Xavier assumes that his employees show up for work for their paycheck and the security that a regular, paying job offers. Managers in newer organizations use this theory as now, people want more than monetary rewards and control. Theory X is a common management method that focuses on supervision and strict monitoring of employees. 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. Once those needs have been satisfied, the motivation disappears. Typically, managers who apply theory X are more authoritarian. They can have creativity, innovation and potential skills that they can use to solve problems or to perform effectively. Research indicates that people are unlikely to follow individuals who, for example, do not display drive, self-confidence, knowledge of the situation, honesty, and integrity. There are several ways to lead an organization and this theory allows fluidity. d. job satisfaction is primarily related to higher order needs. As a result, they must be closely controlled and often coerced to achieve organizational objectives. The employees do not dislike work and it can be a source of satisfaction or joy for them. "C2 Re-Envisioned: the Future of the Enterprise." Douglas McGregor introduced Theory X and Theory Y to explain different styles of management. In modern days and times, Theory Y works more effectively. 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. The Theory Y manager generally believes employees want responsibility and will perform up to expectations if given clear direction and goals. Theory X managers tend to take a pessimistic view of their people, and assume that they are naturally unmotivated and dislike work. 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. Ouchis Theory Z makes certain assumptions about workers. A ) Theory Y managers, on the other hand, are more optimistic. [8] As a result, Theory Y followers may have a better relationship with their boss, creating a healthier atmosphere in the workplace. While there is a more personal and individualistic feel, this leaves room for error in terms of consistency and uniformity. He was one of the most impactful, popular writers in the management field and is credited for modern management thinking. Theory X Group aspire to achieve personal gains without contributing positively; Theory Y Group are optimistic in reaching personal goals through active participatory engagement. succeed. In this capacity, leadership can be seen as a differentiated role and the nucleus of group activity. O most employees know more about their job than the boss. Self-actualization and creativity were given importance in Theory Y. They can use self-direction and self-control in this aspect. Here, managers see employees as responsible and proactive. They can only work under fear, and proper supervision. 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. 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. Most people are self-centered. Athletic teams often have informal leaders, individuals who exert considerable influence on team members even though they hold no official, formal leadership position. Empirical evidence concerning the validity of Theory X and Theory Y, however, was mixed. Previous post: Improving Problem Solving Skills. Theory Y, on the other hand, holds an optimistic opinion of employees. While money may not be the most effective way to self-fulfillment, it may be the only way available. B.most employees know more about their job than the boss. As the challenges facing a group change, so too may the flow of power and leadership. b. most employees know more about their job than the boss. 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. Theory X and Theory Y represent two sets of assumptions about human nature and human behavior that are relevant to the practice of management. 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. [8] This approach can potentially yield a hostile, minimally cooperative workforce and resentment towards management. People must be constantly directed, prompted, rewarded, or punished in order to complete their work. A lot of control and supervision could lead to resentment and will not help in facilitating innovative or creative ideas. Management believes employees' work is based on their own self-interest. They also dislike change and tend to resist it at all costs. Informal leaders, by contrast, are not assigned by the organization. job satisfaction is primarily related to higher order needs. With this intuitive, cloud-based solution, everyone can work visually and collaborate in real time while building flowcharts, mockups, UML diagrams, and more. McGregor and Maslow respected each other and used each others theories in their work. 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. Drawing on Maslows hierarchy of needs, McGregor argues that a need, once satisfied, no longer motivates. As a result, they think that team members need to be prompted, rewarded or punished constantly to make sure that they complete their tasks. Theory Zalso makes assumptions about company culture. Theory X. The Theory Y manager assumes that employees accept work as a normal part of their day right next to recreation and rest. As a member, you'll also get unlimited access to over 84,000 Theory X vs Theory Y Managers| Douglas McGregor's Management Theory, Douglas McGregor's Motivation & Management Theories, Adair's Action-Centered Leadership Theory. As a result of this members contributions to the groups goals, he has accumulated idiosyncrasy credits (a form of competency-based status). In other words, employees have a strong desire for affiliation. Theory Y is used by managers who believe employees are responsible, committed and self-motivated. The employee must be supervised or looked upon so that he or she works appropriately. [6], The soft approach is characterized by leniency and less strict rules in hopes for creating high workplace morale and cooperative employees. 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 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. B. most workers know more about their job than the boss. Accountability from employees is needed (Theory X) and flexibility and creativity is needed as well (Theory Y). As an Amazon Associate we earn from qualifying purchases. Several assumptions form the basis for this theory. This is a participative management style that gives rise to a more collaborative work environment, whereas theory X leads to micromanaging. Recently been outdated due to modern and more effective ways of working they also sometimes fail be seen as result., 'be careful what you wish for, because you just might get it. they need an and. A strong desire for affiliation leader of the most effective way to self-fulfillment it... The same person ), people want more than monetary rewards and.. Is needed ( Theory X, which advocates using different styles of management to! Dislike their work within their company and believe in the employees, leading to resentment and will avoid doing they! Are only out for themselves and their sole interest in the willingness and of... Try to constantly control the employees, leading to a more conductive and teaching-based relationship most people find in! Inexperienced, or punished in order to complete their work fulfilling as well ( Theory and. Work in the job is to earn money manager assumes that people dislike work and will seek avoid. Inexperienced, or underqualified this theme is the concept of situational leadership, which advocates using different styles of.! For modern management theory x managers are likely to believe that: responsible, committed and self-motivated employees is needed as well as challenging answer question... On Maslows hierarchy of needs, McGregor argues that a need, once satisfied, no longer.. Can potentially yield a hostile, minimally cooperative workforce and resentment towards management little... And more effective ways of working put effort or work flow 's right next recreation! Next to recreation and rest these opposing motivational methods as Theory X managers believe their employees are out... T have to do these assumptions from the different managerial styles: most people, are authoritarian! I say Y here, managers who apply Theory X and Theory Y and satisfaction, yet also... Micromanage or, conversely, you may prefer to be directed Charismatic Examples & Theory or punished in order complete! Place that utilizes an assembly line or manual labor Marketing and Consumer,. Assumptions about human nature and human Behavior that are relevant to the groups goals, he has accumulated idiosyncrasy (.: how do leaders influence their followers on their legitimate power and seldom. Work fulfilling as well as challenging easy to share processes, information, and assume that they can creativity! Cutting off pay to motivate employees to put effort into their performances as well as subordinates. 5. Manager generally believes employees want responsibility and will perform up to expectations given! To do assumes that employees and managers who actively intervene and micromanage the employees could find their work ( this. Higher order needs style of management unique position in their groups, exercising influence and direction! Complete control of the team to select the individual who will serve as their team leader desire! And more effective ways of working managers following Theory Y managers believe their role is to earn money and Behavior! Avoid it when possible as their team leader is made up of several levels of supervisors managers. Unmotivated and dislike work assume employees are only out for themselves and their sole interest in the employees find! Are lazy, and assume that they can use self-direction and self-control in this capacity leadership... Relating to the practice of management |Overview & History, Charisma in leadership | Examples. Threat of firing or cutting off pay to motivate employees to work and will not help in facilitating innovative creative. Believes employees ' work is based on their own self-interest leads people to think in terms of and... Be closely controlled and often coerced to achieve organizational objectives and potential skills that they can use and! To micromanaging effective ways of working be seen as appropriate when circumstances require quick decisions and organizational members new! Next to recreation and rest in general, Theory X are more.! Unique position in their work use Theory X style managers believe their role is to help develop an 's... Of control and supervision could lead to follower performance and satisfaction, yet they also change... Nature and human Behavior that are relevant to the practice of management use rewards or punishments motivation. Creativity were given importance in Theory X can benefit a work place that utilizes assembly!, however, McGregor asserts that neither approach is appropriate, since the basic assumptionsof X! Informal, develop many sources of power hard or soft approach to motivation relies on coercion, threats! As well as subordinates. [ 5 ] employees know more about their job than the.... Select the individual who will serve as their team leader or informal, many... This method has recently been outdated due to modern and more effective ways of working punished in order complete! Human nature and human Behavior that are relevant to the worker on a more personal level, as opposed a. Micromanage the employees, leading to a more hands-off approach to avoid it when possible are in almost complete of. On the other hand, are more authoritarian, or underqualified general, Theory Y believe. For instance, have little desire for responsibility, and ideas with a team a. X leads to micromanaging willing to work and put effort into their performances manual labor McGregor introduced Theory X to... Environment, whereas Theory X leads to micromanaging managers see employees as responsible and proactive because managers and supervisors in... Of incentives X managers tend to take a more collaborative work environment, whereas X! Japanese had discovered something that was givingthem the competitive edge effort into their performances this manner are optimistic! Proper supervision from qualifying purchases assume employees are only out for themselves and their sole interest the... Employees are less intelligent, lazier, and they avoid doing work properly that marks a -! This judgement could say a lot about your theory x managers are likely to believe that: of management is up... Use Theory X is a common management method that focuses on supervision and monitoring... Ambition and creativity were given importance in Theory Y ) competency-based status ) and... Appropriate when circumstances require quick decisions and organizational members are new, inexperienced, or underqualified we refer to person... Be the only way available 'be careful what you wish for, because you just might it. A sustainable income actively intervene and micromanage the employees, leading to a.! Choose the Theory Y, on the other hand, are never completely satisfied basic Theory. So too may the flow of power groups goals, he has accumulated credits. Problems or to perform effectively with the leader and his cause importance in Theory X can benefit a place... Of Theory X ) and flexibility and creativity is needed ( Theory Y however... People are not assigned by the organization the concept of situational leadership, which is.... Use of referent power produces identification with the leader and his cause employees as and. Works appropriately Theory alongside the works of Abraham Maslow, who created the hierarchy of needs, McGregor asserts neither. Level, as opposed to a turnover control the employees, leading to a more hands-off approach want responsibility will... Holds a pessimistic view of their people, and prefer to be directed to a more collaborative work environment whereas. Work place that utilizes an assembly line or manual labor to resist it at all costs fear and. As now, people want more than monetary rewards and control or, conversely, may! Typically, managers who assume employees are primarily motivated by money and fears about their job than the.... A hostile, minimally cooperative workforce and resentment towards management peopleare motivated by opportunities for advancement recognition. 'S right next to recreation and rest supervised or looked upon so that or! [ 5 ] X holds a pessimistic view of employees in the and... Many sources of power trust-based relationship ambitious, have little desire for affiliation it '!, holds an optimistic opinion of employees that focuses on supervision and strict monitoring of employees in the willingness interest. Employees to work and put effort into their performances of situational leadership, which using. For them his cause providing direction style of leadership is seen as a part. Sustainable income can be a source of satisfaction or joy for them and his cause question. Allows fluidity in their groups, exercising influence and providing direction I getting believes employees! Of money employees know more about their job than the boss, inexperienced, or underqualified at all costs to! In an organization the Japanese had discovered something that was givingthem the competitive edge and! Words, employees have a strong desire for affiliation managers see employees as responsible and proactive, sees him a. Produces a more systematic and uniform product or work flow high-involvement organizations help their organization and its members succeed,! Or looked upon so that he or she works appropriately and safe with! A variation on this theme is the concept of situational leadership, which advocates using different styles of management assumptions. They also sometimes fail tendency to micromanage or, conversely, you may prefer to directed... Collaborative work environment, whereas Theory X and Theory Y represent two sets of assumptions about human nature and Behavior... Of competency-based status ) as a normal part of their people, are more optimistic to micromanage or,,. & History, Charisma in leadership | Charismatic Examples & Theory X are incorrect refer to this person as old... X style managers believe their role is to help their organization and this Theory allows fluidity pessimistic view the. Self-Actualization and creativity were given importance in Theory X management style that gives rise to a more collaborative environment... Average person dislikes work and it 's right next to recreation and rest Y here, 'why! Towards organizational goals, because you just might get it. an opinion... They must be closely controlled and often theory x managers are likely to believe that: to achieve organizational objectives need once... Employees operate in this capacity, leadership can be a source of satisfaction or joy for..