On the other hand, theory Y infers that people accept and seek responsibility. Theory-X assumptions are: 1 most people dislike and will avoid it to the extent possible, therefore 2 they must be continually coerced, controlled, and threatened with to get the work done, and that 3 they have little or no , prefer to avoid , and choose above everything else. Do you care about the goals of the organization that you work for, or do you focus more on getting a regular paycheck to bring home? This theory is linked to management and leadership, and assumes that workers are lazy, selfish, and generally sloppy at their work. Next, the management directs the efforts of the employees and motivate and control their actions, to make them work as per the needs of the organisation. Managers are always looking for mistakes from employees, because they do not trust their work. Due to these assumptions, Theory X concludes the typical workforce operates more efficiently under a hands-on approach to management.
The next two sections will define and discuss McGregor's two theories 1 Theory X 2 Theory Y and give scenarios when each management style could be used. It can be difficult for organizations and employees to make life-time employment commitments. On the other extreme, Theory Y is diametrically opposite to theory X which shows the modern and dynamic approach to individuals and relies on the assumptions that are practical in nature. Douglas McGregor studied these questions and proposed two different views of employee motivation in his 1960 book 'The Human Side of Enterprise. Definition and Assumptions of Theory X Theory X is based on a pessimistic view of employee motivation and behavior. Validity of Theory X and Theory Y McGregor himself felt that Theory X had less validity than Theory Y.
What are the characteristics of a Theory X manager? Others view working as a burden and simply have jobs to pay the bills. When properly motivated through rewards they are self- controlled and seek responsibility. Essentially, Theory X assumes that the primary source of employee motivation is monetary, with security as a strong second. Theory x and theory y are still referred to commonly in the field of management and motivation, and whilst more recent studies have questioned the rigidity of the model, Mcgregor's X-Y Theory remains a valid basic principle from which to develop positive management style and techniques. If properly implemented, such an environment can increase and continually fuel motivation as employees work to satisfy their higher-level personal needs through their jobs.
Theory-Y believers based firms with empowered employees. One of the key assumption in this approach is that the average employee doesn't like work and will do anything to avoid it. According to , Theory Z management tends to promote stable employment, high productivity, and high employee morale and satisfaction. They were created by while he was working at the in the 1950s, and developed further in the 1960s. This management style assumes that the typical worker has little ambition, avoids responsibility, and is individual-goal oriented. Such managers are likely to use more of a command and control approach with their employees. Based on these assumptions, it can be deduced that management is held responsible for arranging the resources with the aim of achieving economic and social ends.
Link to this page: Theory X and Theory Y. The McGraw-Hill 36-Hour Management Course p. Theory Z also makes assumptions about company culture. By understanding what needs must be met in order for an employee to achieve the highest-level of motivation, managers are then able to get the most out of production. As he explained in his seminal paper titled Theory Z, the motivation for transcendence literally 'transcends' his original hierarchy of needs. This led companies to focus on how their employees were motivated, managed, and led, creating a Theory Y management style which focuses on the drive for individual self — fulfillment.
Theory X assumes that employees are lazy, unmotivated, and will do anything to avoid working. Decision making became centralized and control was established through a chain of command where workers were told what to do and how to do it without being provided an opportunity to contribute to the decision making process. According to Theory Y, when conditions are favorable, the individual finds work appealing and is highly motivated at need levels. According to Douglas McGregor, there are two categorizations of what motivates people: Theory X and Theory Y. These new non classical organizations concentrated on satisfying the assumptions of Theory Y by responding to the needs of the workers who focused on meeting the organizational goals.
One major flaw of this management style is it is much more likely to cause diseconomies of scale in large business. The employees must be persuaded, rewarded, motivated, punished, controlled to get the work completed. It is attitude not attributes. Very few practice either being autocratic or democratic completely. They describe two contrasting models of workforce motivation. One of them is that employees take responsibility of their actions and work towards achieving the goals of the organization without much supervision.
The soft approach results in a growing desire for greater reward in exchange for diminished work output. 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 practices are not the norm. Theory X and Theory Y are descriptions of two extreme managerial styles. Never threaten or go over their heads if you are dissatisfied or you'll be in big trouble afterwards and life will be a lot more difficult. It's human resource development that is a crucial aspect of any organization. As a result of this, management believes that workers need to be closely supervised and comprehensive systems of controls developed.