One of his colleagues, Riya, believes that he is a diligent worker and gains satisfaction through working hard. Theory X managers are likely to believe that: a. the average employee dislikes work and will seek to avoid it when possible. Many consider such actions necessary for self-managing work teams to succeed. Theory Y leaders are much more likely to adopt involvement-oriented approaches to leadership and organically designed organizations for their leadership group. They lack ambition and physiological and safety factors motivate them. and you must attribute OpenStax. Enrolling in a course lets you earn progress by passing quizzes and exams. Many leaders emerge out of the needs of the situation. As we have noted, the terms leader and manager are not synonymous. This management style assumes that the typical worker has little ambition, avoids responsibility, and is individual-goal oriented. It suggests that there are two approaches to managing people. "Theory X and Theory Y, Douglas McGregor", "Employee Management: Are You X or Are You Y", "Theory X and Theory Y: Understanding People's Motivations", A diagram representing Theory X and Theory Y, Another diagram representing Theory X and Theory Y, https://en.wikipedia.org/w/index.php?title=Theory_X_and_Theory_Y&oldid=1136635549, Creative Commons Attribution-ShareAlike License 3.0, This page was last edited on 31 January 2023, at 10:10. Empirical evidence concerning the validity of Theory X and Theory Y, however, was mixed. Proc. Theory X The power base in many organizations shifted to marketing as competition became a game of advertising aimed at differentiating products in the consumers mind. Most people are self-centered. They can be motivated internally to complete their tasks and not always need supervision or micromanaging. Theory X managers believe all actions should be traceable to the individual responsible. Theory X, although outdated, is still used in larger firms, wherein a higher number of people are employed and deadlines are to be met. 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. 5. Management professor William Ouchi argued that Western organizations could learn from their Japanese counterparts. The theory X and Y leadership model was developed 50 years ago and has been validated by modern research. 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. Yoko is a Theory Y manager, and when I say Y here, think 'why not.' [8] This approach is derived from Fred Fiedler's research over various leadership styles known as the contingency theory. This short quiz does not count toward your grade in the class, and you can retake it an unlimited number of times. Sometimes these powers lead to follower performance and satisfaction, yet they also sometimes fail. I think there is a little misconception here. Reason In theory X, the manager believes that employees are lazy, and they avoid doing work properly. Work can be as natural as play if the conditions are favorable. It is important to recognize that the traits possessed by certain individuals contribute significantly to their emergence as leaders. Management Styles Theories, Types & Examples | What is Management Style? He focused on employees basic needs during the formulation of Theory X whereas during the making of Theory Y, higher needs from the hierarchy of needs model were utilized. This could additionally lead to a bad reputation. Overall leader effectiveness will be higher when people follow because they want to follow. 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. He mentioned Theory X and Theory Y in his book, The Human Side of Enterprise, published in 1960. 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. Theory X managers are likely to believe that employees are lazy, fear-motivated, and in need of constant direction. Because managers and supervisors are in almost complete control of the work, this produces a more systematic and uniform product or work flow. [6] Managers are always looking for mistakes from employees, because they do not trust their work. The employee is not responsible and hence must be supervised or directed towards the goal of the organization. Except where otherwise noted, textbooks on this site "C2 Re-Envisioned: the Future of the Enterprise." Are inherently lazy, lack. Power, then, essentially answers the how question: How do leaders influence their followers? An organization with this style of management encourages participation and values individuals' thoughts and goals. The managers influenced by Theory X believe that everything must end in blaming someone. McGregor created Theory X based on Maslows lower needs on the hierarchy of needs model (food, water, necessities). As a result of this members contributions to the groups goals, he has accumulated idiosyncrasy credits (a form of competency-based status). Douglas McGregor's Theory X and Theory Y. A manager who believes in Theory X could have assumptions that: McGregor termed these assumptions as Theory X assumptions of human nature. 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. O most employees know more about their job than the boss. The Situational Leader: Overview & Examples | What is a Situational Leader? Each assumes that the managers role is to organize resources, including people, to best benefit the company. Several assumptions form the basis for this theory. People need more than monetary rewards or the threat of punishment to do their jobs. Its like a teacher waved a magic wand and did the work for me. The manager provides incentives and appraisals, but they are given as acknowledgement and appreciation of the employees performances, and not to control them. During the 1980s, American business and industry experienceda tsunami of demand for Japanese products and imports, particularly in the automotive industry. Since the employee is not responsible to work willingly, he or she must be motivated with the rewards and incentives, prompted, punished, coerced or forced into working. Theory X managers tend to take a pessimistic view of their people, and assume that they are naturally unmotivated and dislike work. Ouchis theory first appeared in his 1981 book, Theory Z: How American Management Can Meet the Japanese Challenge. As a result, they must be closely controlled and often coerced to achieve organizational objectives. Both theories are mostly used as a mixture in organizations and workplaces. Theory Y managers gravitate towards relating to the worker on a more personal level, as opposed to a more conductive and teaching-based relationship. Under Theory X, one can take a hard or soft approach to getting results. Theory X works on the belief that employees are lazy and need to be micromanaged. Market Segmentation Types & Examples | What is Market Segmentation? Theory Y, on the other hand, holds an optimistic opinion of employees. One psychologist, Douglas McGregor, categorized people's motivations into two broad categories: Theory X and Theory Y. 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. Theory of X and Y is a theory on human work and motivation developed by Douglas McGregor. He referred to these opposing motivational methods as Theory X and Theory Y management. McGregor's X-Y theory is a salutary and simple reminder of the natural rules for managing people, which under the pressure of day-to-day business are all too easily forgotten. The informal leader is that individual whom members of the group acknowledge as their leader. Learn about motivation in the workplace . In fact, most work groups contain at least one informal leader. Theory Y managers are likely to believe that employees are motivated by the value of their contribution. If you believe that your team members dislike work and have little natural motivation to do a good job, then according to McGregor, you likely use an authoritarian style of management. a Theory X Manager typically believes their staff: dislike their work / are lazy cannot be trusted need to be closely supervised / micro-managed dislike or avoid responsibility have no inherent incentive or desire to work lack ambition work only for pay or because they have to have to be driven by rewards or punishment It refers to the management style that believes in authoritarian and controlling . B.most employees know more about their job than the boss. McGregor's Theory X and Theory Y is about judging the needs and character of your people. His main ideas broke down into two options, Theory X and Theory Y. Xavier is a Theory X manager. Leaders hold a unique position in their groups, exercising influence and providing direction. But . C. employees are motivated mainly by the chance for advancement and recognition. Most people have little aptitude for creativity in solving organizational problems. Human Relations Theory Overview & Timeline | What are Human Relations? The answer often is that a leaders social influence is the source of his power. And the most lauded skills, especially in leadership, lie in the ability to connect seemingly disparate ideas and communicate those ideas clearly. Therefore, Xavier believes his role as a manager is to coerce and control his employees to work towards organizational goals. Many writers and researchers have explored how leaders can use power to address the needs of various situations. This is a positive view of the nature of workers. This is a participative management style that gives rise to a more collaborative work environment, whereas theory X leads to micromanaging. job satisfaction is primarily related to higher order needs. The managers who are categorized as a Theory X leaders in general believe that the subordinates fail to live up to the corporate expectations hence assume that subordinates are just influenced with rewards as well as monetary rather than fulfilling the stated corporate objectives. The hard approach results in hostility, purposely low output, and extreme union demands. Why not assume the best in people? Theory X vs Theory Y Managers| Douglas McGregor's Management Theory, Douglas McGregor's Motivation & Management Theories, Adair's Action-Centered Leadership Theory. Micromanagement is not looked at positively in todays scenario, leading to Theory Y being the most productive way of management. We refer to this person as the designated leader (in this instance the designated and formal leader are the same person). The Japanese had discovered something that was givingthem the competitive edge. Theory Y managers believe that _____. Drawing on Maslows hierarchy of needs, McGregor argues that a need, once satisfied, no longer motivates. Consider these assumptions from the different managerial styles: Most people find happiness in hard work under the right conditions. [8] As a result, Theory Y followers may have a better relationship with their boss, creating a healthier atmosphere in the workplace. the average person dislikes work and will seek to avoid it when possible. Basically, Theory X managers believe that people don't want to work, don't enjoy working, and are only motivated by money. 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. [12] On the contrary, managers who choose the Theory Y approach have a hands-off style of management. 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. [13], Theory X and Theory Y also have implications in military command and control (C2). [7] McGregor believes both ends of the spectrum are too extreme for efficient real-world application. Although both styles of management can motivate people, the success of each will largely depend on your team's needs and wants and your . Discover each theory and the respective qualities of each, as well as how self-fulfilling prophecies come into play for managers. They do not always need coercion, incentives or force to complete their work. What might be less immediately understandable are the differing effects of Theory X and Y on resulting behavior and productivity. He explained this concept in his book "The Human side of Enterprise". Social or (interpersonal) influence is ones ability to effect a change in the motivation, attitudes, and/or behaviors of others. The theory made some sense when. This theory has also been criticized for being too idealistic and unachievable by some critics. They are self-centered and care only about themselves and not the organization or its goals, making it necessary for a manager to coerce, control, direct or threaten with punishment in order to get them to work towards organizational goals. Often, the formal leader is appointed by the organization to serve in a formal capacity as an agent of the organization. | 10 Get unlimited access to over 84,000 lessons. [6] Due to these assumptions, Theory X concludes the typical workforce operates more efficiently under a hands-on approach to management. 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. Where a typical Theory X manager might require strict work hours, a Theory Y manager might offer employees a firm deadline, trusting them with the choice of when and how they will meet a productivity deadline. A variation on this theme is the concept of situational leadership, which advocates using different styles of management in different circumstances. Abraham Maslow and McGregor both gave popular theories on motivation. Theory Y managers assume employees are internally motivated, enjoy their job, and work to better themselves without a direct reward in return. 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. 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. 147 lessons Also, participative decision-making may not always be feasible or successful due to the nature of the work or the willingness of the workers. Some employees may take advantage of this freedom and not meet their work objectives. Theory Y managers believe employees would be motivated to meet goals in the absence of organizational controls, given favorable conditions. It refers to the management style that believes in authoritarian and controlling behavior. 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. People will use work to satisfy their lower needs and seek to satisfy their higher needs during their leisure time. Creative Commons Attribution License On the other hand, more modern, network-centric, and decentralized concepts of C2, that rely on individual initiative and self-synchronization, tend to arise more from a "Theory Y" philosophy. The use of rationality, expert power, and/or moralistic appeal generally elicits commitment and the internalization of the leaders goals.29, Leaders who use referent and expert power commonly experience a favorable response in terms of follower satisfaction and performance. In modern days and times, Theory Y works more effectively. Accept work as a normal part of their day, and it's right next to recreation and rest. This theory supports threatening supervisory power. If you agree with Riya, you will likely agree with Theory Y, which refers to a more participative style of managing. In general, Theory X style managers believe their employees are less intelligent, lazier, and work solely for a sustainable income. 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. McGregor makes the point that a command-and-control environment is not effective because it relies on lower needs for motivation, but in modern society those needs are mostly satisfied and thus are no longer motivating. 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. They are not inherently irresponsible or lazy. As a result, the only way that employees can attempt to meet higher-level needs at work is to seek more compensation, so, predictably, they focus on monetary rewards. As the old saying goes, 'be careful what you wish for, because you just might get it.' D. Job satisfaction is mostly related to higher order needs. B employees are primarily motivated by opportunities for advancement and recognition. This is much more likely to happen when the leaders influence flows out of intrinsic such as rationality, expertise, moralistic appeal, and/or referent power. 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. Managers following Theory Y believe that employees are willing to work and put effort into their performances. 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. In actual practice, most managers today practice a combination of Theory X and Theory Y styles of management. d. job satisfaction is primarily related to higher-order needs. Practically all managers act as formal leaders as part of their assigned role. Work in organizations that are managed like this can be repetitive, and people are often motivated with a "carrot and stick" approach. It mightseemthat the optimal approach to human resource management would lie somewhere between these extremes. As a result, they think that employees need to be prompted, rewarded or punished regularly to make sure that they perform their tasks. 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. 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. Organizations have two kinds of leaders: formal and informal. Once those needs have been satisfied, the motivation disappears. The manager allows for collaborative decision-making and amicable relations within the organization or firm. Theory X and Theory Y are theories of human work motivation and management. In short, he studied heavily how our beliefs shape our behavior and thus how that behavior shapes the behavior of those around us. Work in organizations that are managed like this can . 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. Managers give employees some free space and flexibility to work. Although Theory Y encompasses creativity and discussion, it does have limitations. 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