[11], For McGregor, Theory X and Theory Y are not opposite ends of the same continuum, but rather two different continua in themselves. One assumption is that theyseek to build cooperative and intimate working relationships with their coworkers. 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. In sum, one key to effective leadership, especially as it pertains to the exercise of social and interpersonal influence, relates to the type of power employed by the leader. This approach is usually taken by managers working in older companies and firms. succeed. Typically, managers who apply theory X are more authoritarian. Leaders hold a unique position in their groups, exercising influence and providing direction. When this persons role is sanctioned by the formal organization, these team leaders become formal leaders. We recommend using a Both sides seek to satisfy some personal pleasures and needs. The control and coercion involved in this style of management could lead to employee frustration, de-motivate employees and damage relationships within the organization. | 10 5. Modern work gets done through the connection of ideas: The better your ideas and the more efficient your connection, the better off your company will fare in this rapidly changing economy and industry. Proc. Most employees know more about their job than the boss. 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. Once surgery begins, however, the surgeon is completely in charge. Here, leaders act as facilitators, process consultants, network builders, conflict managers, inspirationalists, coaches, teachers/mentors, and cheerleaders.40 Such is the role of Ralph Stayer, founder, owner, and CEO of Johnsonville Foods. Enrolling in a course lets you earn progress by passing quizzes and exams. Creative Commons Attribution License Theory X management, defined by Douglas McGregor in 1960, is a behavioral style for workplace management. 4. Douglas McGregor was a management professor at Massachusetts IT university, Cambridge in the 1950s, and published a few articles and books as well. Most people are gullible and unintelligent. Theory X managers believe employees must be controlled to meet organizational goals. OpenStax is part of Rice University, which is a 501(c)(3) nonprofit. In modern days and times, Theory Y works more effectively. It is also used in unskilled labor organizations or production firms. citation tool such as, Authors: David S. Bright, Anastasia H. Cortes. As such, it is these higher-level needs through which employees can best be motivated. [13], Theory X and Theory Y also have implications in military command and control (C2). Work is inherently distasteful to most people, and they will attempt to avoid work whenever possible. 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. You may, however, find that you naturally favor one over the other. Theory X can benefit a work place that utilizes an assembly line or manual labor. He wrote on leadership as well. The two theories proposed by McGregor describe contrasting models of workforce motivation applied by managers in human resource management, organizational behavior, organizational communication and organizational development. It would be beneficial to use both theories in moderation to ensure productivity and discipline in an organization. When researchers study trends in occupational inequality they usually focus on distribution or allocation pattern of groups across occupations, for example, the distribution of men compared to women in a certain occupation. They were created by Douglas McGregor while he was working at the MIT Sloan School of Management in the 1950s, and developed further in the 1960s. Theory X, although outdated, is still used in larger firms, wherein a higher number of people are employed and deadlines are to be met. This website helped me pass! Accept work as a normal part of their day, and it's right next to recreation and rest. employees are motivated mainly by the chance for advancement and recognitionc. 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. Managers following Theory Y believe that employees are willing to work and put effort into their performances. Theory X represents a negative view of human nature that assumes individuals generally dislike work, are irresponsible, and require close supervision to do their jobs. He was one of the most impactful, popular writers in the management field and is credited for modern management thinking. copyright 2003-2023 Study.com. A manager dealing with a group of experts would likely use this theory and give them freedom and space to work. Establish coaching to help team leaders . 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. As a Theory Y manager, Yoko believes her employees: Yoko assumes that her employees are full of potential and that it is her role as a manager to help develop that potential so that the employee can work towards a common organizational goal. The Theory Y manager assumes that employees accept work as a normal part of their day right next to recreation and rest. While money may not be the most effective way to self-fulfillment, it may be the only way available. 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. C. employees are motivated mainly by the chance for advancement and recognition.D. These managers view their employees as one of the most valuable assets to the company, driving the internal workings of the corporation. But . Intervention of the management is considered to be important to deal with passive, resistant workers. Theory X management is substantially a matter of crafting positive and negative incentives, such as bonuses or other rewards for meeting targets, or progressive discipline for falling short, which may include remedial training. This is a positive view of the nature of workers. 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 . [6] Managers are always looking for mistakes from employees, because they do not trust their work. As a consequence, they exert a highly controlling leadership style. The result was Theory Za developmentbeyond Theory X and Theory Y thatblended the best of Eastern and Western management practices. Lucidchart is the intelligent diagramming application that empowers teams to clarify complexity, align their insights, and build the futurefaster. Theory X vs Theory Y Managers| Douglas McGregor's Management Theory, Douglas McGregor's Motivation & Management Theories, Adair's Action-Centered Leadership Theory. Theory Y managers appeal to a higher level of motivation on Maslows famous Hierarchy of Needs, capitalizing on the human need for esteem and self-actualization. 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. Theory of X and Y is a theory on human work and motivation developed by Douglas McGregor. And the approach to and requirements of leadership are changing with it. 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 Y managers favor a more collaborative approach, centering their leadership on trust, valuing creative problem solving, and managing by way of providing their employees with tools, opportunities, and visibility to do their jobs well. He would hierarchically arrange the job roles with several supervisors for different departments, looking over employees. Because managers and supervisors are in almost complete control of the work, this produces a more systematic and uniform product or work flow. 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. An error occurred trying to load this video. Theory X. Try refreshing the page, or contact customer support. The permissive democratic approach to leadership is characteristic of leadership in high-involvement organizations. As we have noted, leadership is the exercise of influence over those who depend on one another for attaining a mutual goal in a group setting. They are inherently lazy, lack ambition and prefer to be directed on what to do rather than assume responsibility on their own. However, McGregor asserts that neither approach is appropriate, since the basic assumptionsof Theory X are incorrect. They also dislike change and tend to resist it at all costs. You might, for instance, have a tendency to micromanage or, conversely, you may prefer to take a more hands-off approach. And the most lauded skills, especially in leadership, lie in the ability to connect seemingly disparate ideas and communicate those ideas clearly. Theory X management hinders the satisfaction of higher-level needs because it doesn't acknowledge that those needs are relevant in the workplace. Theory X represents a negative view of human nature that assumes individuals generally dislike work, are irresponsible, and require close supervision to do their jobs. People are motivated when they find value in their contributions and see an opportunity to realize their own potential. most workers seek out more resonsibilityTheory Y managers prefera. It refers to the management style that follows a more participative, interactive and optimistic approach. 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. b. most employees know more about their job than the boss. Many leaders emerge out of the needs of the situation. Managers may prefer one theory over the other; it depends on individual trait differences. Theory Z stresses the need to helpworkers become generalists, rather than specialists. The OpenStax name, OpenStax logo, OpenStax book covers, OpenStax CNX name, and OpenStax CNX logo The informal leader is that individual whom members of the group acknowledge as their leader. A variation on this theme is the concept of situational leadership, which advocates using different styles of management in different circumstances. An organization with this style of management is made up of several levels of supervisors and managers who actively intervene and micromanage the employees. McGregor and Maslow respected each other and used each others theories in their work. [6], The soft approach is characterized by leniency and less strict rules in hopes for creating high workplace morale and cooperative employees. McGregor stressed that Theory Y management does not imply a soft approach. They do not always need coercion, incentives or force to complete their work. B employees are primarily motivated by opportunities for advancement and recognition. Much like a bomb, assumptions are a dangerous thing to make - just the slightest little mistake and you can end up blowing yourself up! Theory Y is also known as contingency theory because it allows for flexibility in the work environment. The power base in many organizations shifted to marketing as competition became a game of advertising aimed at differentiating products in the consumers mind. [7] The hard approach depends on close supervision, intimidation, and immediate punishment. most employees know more about their job than the bossd. 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. are licensed under a, Major Characteristics of the Manager's Job, How the Brain Processes Information to Make Decisions: Reflective and Reactive Systems, Administrative and Bureaucratic Management, External and Internal Organizational Environments and Corporate Culture, The Internal Organization and External Environments, Organizing for Change in the 21st Century, Ethics, Corporate Responsibility, and Sustainability, Dimensions of Ethics: The Individual Level, Ethical Principles and Responsible Decision-Making, Leadership: Ethics at the Organizational Level, Ethics, Corporate Culture, and Compliance, Emerging Trends in Ethics, CSR, and Compliance, Cultural Stereotyping and Social Institutions, Characteristics of Successful Entrepreneurs, Trends in Entrepreneurship and Small-Business Ownership, Strategic Analysis: Understanding a Firms Competitive Environment, Gaining Advantages by Understanding the Competitive Environment, A Firm's External Macro Environment: PESTEL, A Firm's Micro Environment: Porter's Five Forces, Competition, Strategy, and Competitive Advantage, The Strategic Management Process: Achieving and Sustaining Competitive Advantage, The Role of Strategic Analysis in Formulating a Strategy, Strategic Objectives and Levels of Strategy, Planning Firm Actions to Implement Strategies, Measuring and Evaluating Strategic Performance, An Introduction to Human Resource Management, Influencing Employee Performance and Motivation, Talent Development and Succession Planning, Benefits and Challenges of Workplace Diversity, Situational (Contingency) Approaches to Leadership, Substitutes for and Neutralizers of Leadership, Transformational, Visionary, and Charismatic Leadership, Opportunities and Challenges to Team Building, Factors Affecting Communications and the Roles of Managers, Managerial Communication and Corporate Reputation, The Major Channels of Management Communication Are Talking, Listening, Reading, and Writing, Formal Organizational Planning in Practice, Management by Objectives: A Planning and Control Technique, The Control- and Involvement-Oriented Approaches to Planning and Controlling, MTIIts Importance Now and In the Future, External Sources of Technology and Innovation, Internal Sources of Technology and Innovation, Management Entrepreneurship Skills for Technology and Innovation, Managing Now for Future Technology and Innovation, Tannenbaum and Schmidts Leadership Continuum, Leadership Behavior and the Uses of Power. 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