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. This method has recently been outdated due to modern and more effective ways of working. d. job satisfaction is primarily related to higher order needs. Humanistic psychologist Abraham Maslow, upon whose work McGregor drew for Theories X and Y, Reward and legitimate power (that is, relying on ones position to influence others) produce inconsistent results. As such, it is these higher-level needs through which employees can best be motivated. I feel like its a lifeline. Creative Commons Attribution License While money may not be the most effective way to self-fulfillment, it may be the only way available. The power base in many organizations shifted to marketing as competition became a game of advertising aimed at differentiating products in the consumers mind. They think most employees are only out for themselves and their sole interest in the job is to earn money. the average person dislikes work and will seek to avoid it when possible. As the old saying goes, 'be careful what you wish for, because you just might get it.' I think there is a little misconception here. Hate the idea of having to go to work and do so only to earn a paycheck and the security that it offers. employees are motivated mainly by the chance for advancement and recognition. It can be difficult for organizations and employees to make life-time employment commitments. The control and coercion involved in this style of management could lead to employee frustration, de-motivate employees and damage relationships within the organization. Most people are not ambitious, have little desire for responsibility, and prefer to be directed. Although Theory Y encompasses creativity and discussion, it does have limitations. Managers who choose the Theory X approach have an authoritarian style of management. 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. Most people are gullible and unintelligent. Proc. In actual practice, most managers today practice a combination of Theory X and Theory Y styles of management. You might, for instance, have a tendency to micromanage or, conversely, you may prefer to take a more hands-off approach. We use cookies to ensure that we give you the best experience on our website. One psychologist, Douglas McGregor, categorized people's motivations into two broad categories: Theory X and Theory Y. To McGregor, a steady supply of motivation seemed more likely to occur underTheory Y management. Theory Y, on the other hand, presents a positive view of human . Lack of ambition and laziness is more common than ambition and creativity. Leaders who rely solely on their legitimate power and authority seldom generate the influence necessary to help their organization and its members succeed. Both theories are mostly used as a mixture in organizations and workplaces. Slow promotions, group decision-making, and life-time employment may not be a good fit with companies operating in cultural, social, and economic environments where those work practicesare not the norm. 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. 9899. Work can be as natural as play if the conditions are favorable. [4] McGregor's perspective places the responsibility for performance on managers as well as subordinates.[5]. This generally involves a more 'hands-on' approach and inevitably micromanaging your team's workload to ensure it is done to . Yoko is a Theory Y manager, and when I say Y here, think 'why not.' Theory X holds a pessimistic view of employees in the sense that they cannot work in the absence of incentives. Theory X managers are likely to believe that: most employees know more about their job than the boss. A lot of young entrepreneurs do not keep hierarchical within their company and believe in the willingness and interest of their employees. In modern days and times, Theory Y works more effectively. They can use self-direction and self-control in this aspect. citation tool such as, Authors: David S. Bright, Anastasia H. Cortes. In a strict environment with little autonomy, workers were indeed unhappy and lacking ambition. The Theory Y manager generally believes employees want responsibility and will perform up to expectations if given clear direction and goals. Ouchis theory first appeared in his 1981 book, Theory Z: How American Management Can Meet the Japanese Challenge. In order to achieve the most efficient production, a combination of both theories may be appropriate. 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. Very few practice either being autocratic or democratic completely. Management use of Theory X and Theory Y can affect employee motivation and productivity in different ways, and managers may choose to implement strategies from both theories into their practices. Lucidchart is the intelligent diagramming application that empowers teams to clarify complexity, align their insights, and build the futurefaster. Back in the 1950s and 60s, MIT School of Management student Douglas McGregor published a theory on different types of workers. Abraham Maslow and McGregor both gave popular theories on motivation. This ensures work stays efficient, productive, and in-line with company standards.[9]. 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. [7] The hard approach depends on close supervision, intimidation, and immediate punishment. Managerial Functions in the International Organization. [6] These managers also believe employees would rather . The rationale for the drawn-out time frame is that it helps develop a more dedicated, loyal, and permanent workforce, which benefits the company; the employees, meanwhile, have the opportunity to fully develop their careers at one company. Vassiliou, Marius, David S. Alberts, and Jonathan R. Agre (2015). Douglas McGregor introduced Theory X and Theory Y to explain different styles of management. 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. 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 represents a negative view of human nature that assumes individuals generally dislike work, are irresponsible, and require close supervision to do their jobs. Organizations that use self-managed work teams allow members of the team to select the individual who will serve as their team leader. Theory X managers have a pessimistic view of their employees and assume that they are naturally unmotivated and hate work. Question: Theory X managers are likely to believe thata. [8] This approach can potentially yield a hostile, minimally cooperative workforce and resentment towards management. 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McGregor's Theory X and Theory Y is about judging the needs and character of your people. [4] This allows the employee to design, construct, and publish their work in a timely manner in co-ordinance to their workload and projects. As an Amazon Associate we earn from qualifying purchases. This style of leadership is seen as appropriate when circumstances require quick decisions and organizational members are new, inexperienced, or underqualified. This could additionally lead to a bad reputation. 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. The theory X and Y leadership model was developed 50 years ago and has been validated by modern research. Interactive, participative style of managing. The managers influenced by Theory X believe that everything must end in blaming someone. 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. Jack Welch was the formal leader of General Electric, and Leonard Bernstein was the formal leader of the symphony. Hence, both theories used in moderation are key to good organization. Management believes employees' work is based on their own self-interest. I would definitely recommend Study.com to my colleagues. She also holds three degrees including communications, business, educational leadership/technology. 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. 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. As we have noted, the terms leader and manager are not synonymous. Managers may prefer one theory over the other; it depends on individual trait differences. Theory X starts from the assumption that people are naturally lazy, want to avoid work as much as possible, do not wish to take responsibility, have no . Intervention of the management is considered to be important to deal with passive, resistant workers. It has been a fact that sustainability and employee turnover in corporations rely heavily on the different styles of management practiced at given companies nowadays. Henry comes to work regularly on time and his performance has been consistent. Work is changing. O most employees know more about their job than the boss. A manager who believes in Theory Y could have assumptions that: Too much freedom could lead to no accountability and people could lose direction and focus. Situational Leadership Theory & Styles | What is Situational Leadership? The manager allows for collaborative decision-making and amicable relations within the organization or firm. He was one of the most impactful, popular writers in the management field and is credited for modern management thinking. Once those needs have been satisfied, the motivation disappears. But there are times when management is less about leadership and more about the staunch enforcement of rules and micromanagement of production. His main ideas broke down into two options, Theory X and Theory Y. most employees know more about their job than the bossd. 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. Overall leader effectiveness will be higher when people follow because they want to follow. Evidence suggests that managers from different parts of the global community commonly hold the same view. 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. The theories attempt to show how a manager's perception of his team affects the . They can be motivated internally to complete their tasks and not always need supervision or micromanaging. They lack ambition and physiological and safety factors motivate them. In 1960, Douglas McGregor published two theories (Theory X & Theory Y) of employee motivation based on the assumptions that managers make about employees. 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. Most managers generally use the mixture of the two theories. Organizations have two kinds of leaders: formal and informal. The result was Theory Za developmentbeyond Theory X and Theory Y thatblended the best of Eastern and Western management practices. In short, he studied heavily how our beliefs shape our behavior and thus how that behavior shapes the behavior of those around us. 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. One view holds that in traditional organizations members expect to be told what to do and are willing to follow highly structured directions. Finally, the permissive democrat shares power with group members, soliciting involvement in both decision-making and execution. 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. This leader behavior is recommended when decision-making time is limited, when tasks are routine, or when organizational members have sufficient expertise to determine appropriate role behaviors. Different types of power elicit different forms of compliance: Leaders who rely on coercive power often alienate followers who resist their influence attempts. Informal leaders are acknowledged by the group, and the group willingly responds to their leadership. Under Theory X, one can take a hard or soft approach to getting results. As a result, the only way that employees can attempt to meethigher-level needs at work is to seek more compensation, so, predictably, they focus on monetary rewards. Many startups and new organizations use Theory Y by using flexible deadlines and less controlling supervisors. Why were U.S. consumers clambering forcars, televisions, stereos, and electronics fromJapan? B employees are primarily motivated by opportunities for advancement and recognition. People come to leadership positions through two dynamics. Occupational inequality is the unequal treatment of people based on gender, sexuality, height, weight, accent, or race in the workplace. Theory X managers are likely to believe that: A.the average person dislikes work and will seek to avoid it when possible. As soon as that need is satisfied, the employees have no additional motivation for coming to work. It is believed that managers who adopted theory X produce poor results while managers who take theory Y are likely to deliver better . Managers tend to micromanage and control employees performance and efforts. 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