While money may not be the most effective way to self-fulfillment, it may be the only way available. Informal leaders are acknowledged by the group, and the group willingly responds to their leadership. This short quiz does not count toward your grade in the class, and you can retake it an unlimited number of times. This allows the individual to receive either a direct reward or a reprimand, depending on the outcome's positive or negative nature. Back in the 1950s and 60s, MIT School of Management student Douglas McGregor published a theory on different types of workers. 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. They can only work under fear, and proper supervision. A study of 3,600 managers from 14 countries reveals that most of them held assumptions about human nature that could best be classified as Theory X.37 Even though managers might publicly endorse the merits of participatory management, most of them doubted their workers capacities to exercise self-direction and self-control and to contribute creatively.38, Contemplating the central role of problem-solving in management and leadership, Jan P. Muczyk and Bernard C. Reimann of Cleveland State University offer an interesting perspective on four different leadership styles (see Exhibit 13.7) that revolve around decision-making and implementation processes.39. All other trademarks and copyrights are the property of their respective owners. This paper addresses both theories X and Y of Mc Gregor in economic crisis, where X is the one that might get the poor results focusing on instrumental, physiological values comparing to theory Y where managers are effective . Theory X managers are likely to believe that employees are lazy, fear-motivated, and in need of constant direction. In fact, when the proper motivations and rewards are in place, employees are not only willing but purposely driven to seek out responsibility and challenges on their own. Also, participative decision-making may not always be feasible or successful due to the nature of the work or the willingness of the workers. However, one person who seemed to be unafraid of self-inflicted explosions was Douglas McGregor, a behavior management theorist who was heavily influenced by both Abraham Maslow and the Hawthorne Studies. This is a positive view of the nature of workers. In short, he studied heavily how our beliefs shape our behavior and thus how that behavior shapes the behavior of those around us. Theory X managers are likely to believe that: A. the average person dislikes work and will seek to avoid it when possible. You might, for instance, have a tendency to micromanage or, conversely, you may prefer to take a more hands-off approach. [8] This approach can potentially yield a hostile, minimally cooperative workforce and resentment towards management. 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. Plus, get practice tests, quizzes, and personalized coaching to help you In the 1970s, 1980s, and 1990s, McGregor's conceptualization of Theory X and Theory Y were often used as the basis for discussions of management style, employee involvement, and worker motivation. [1] McGregor's work was rooted in motivation theory alongside the works of Abraham Maslow, who created the hierarchy of needs. We use cookies to ensure that we give you the best experience on our website. A ) However, neither of these extremes is optimal. Many leaders emerge out of the needs of the situation. Based on these factors, it is easy to see how Theory X differs from Theory Y and easy to imagine their potential outcomes in the workplace. 147 lessons Managers tend to micromanage and control employees performance and efforts. She also holds three degrees including communications, business, educational leadership/technology. Creative Commons Attribution License Therefore, Xavier believes his role as a manager is to coerce and control his employees to work towards organizational goals. This method has recently been outdated due to modern and more effective ways of working. 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. Vassiliou, Marius, and David S. Alberts (2017). Organizations have two kinds of leaders: formal and informal. Some people prefer micromanaging and leading, and some people prefer giving space. It follows the idea that there is no single way to organize a company or make decisions. 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. Managerial Functions in the International Organization. Athletic teams often have informal leaders, individuals who exert considerable influence on team members even though they hold no official, formal leadership position. Theory Y is also known as contingency theory because it allows for flexibility in the work environment. Theory X managers are likely to believe that: A.the average person dislikes work and will seek to avoid it when possible. Different types of power elicit different forms of compliance: Leaders who rely on coercive power often alienate followers who resist their influence attempts. It suggests that there are two approaches to managing people. An error occurred trying to load this video. He has now replaced the empty chair with Amazon employees with the job title Customer Experience Bar Raisers. As the old saying goes, 'be careful what you wish for, because you just might get it.' Besides conducting the orchestra, he created a vision for the symphony. D. Job satisfaction is mostly related to higher order needs. The managers influenced by Theory X believe that everything must end in blaming someone. Many startups and new organizations use Theory Y by using flexible deadlines and less controlling supervisors. job satisfaction is primarily related to higher order needs. McGregor's Theory X and Theory Y is about judging the needs and character of your people. Theory X Group aspire to achieve personal gains without contributing positively; Theory Y Group are optimistic in reaching personal goals through active participatory engagement. OpenStax is part of Rice University, which is a 501(c)(3) nonprofit. 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. These theories have become the reference point for various approaches to the issues of human resource administration and organisation. Theory X managers are likely to believe that: Answer 17) a. the average employee dislikes work and will seek to avoid it when possible. One of the critical difference between theory Y and theory X is that employees in theory X are associated with adverse traits while employees under theory Y are associated with positive characteristics. His main ideas broke down into two options, Theory X and Theory Y. Work in organizations that are managed like this can . is based on negative assumptions regarding the typical worker. Theory X and Theory Y are two contrasting models of how your work force can be motivated. 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. Once surgery begins, however, the surgeon is completely in charge. Implementing a Theory Y-focused leadership approach requires modern tools that can complement the collaborative workplace. The role of the Theory X manager is to coerce and control employees to work towards organizational goals. Basically, Theory X managers believe that people don't want to work, don't enjoy working, and are only motivated by money. This could lead to more turnover and absenteeism. b. most employees know more about their job than the boss. 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. D. job satisfaction is primarily related to higher order needs. [10] In comparison to Theory X, Theory Y incorporates a pseudo-democratic environment to the workforce. Theory X and Y: An overview. 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. All rights reserved. [14] Mission Command, for example, is a command philosophy to which many modern military establishments aspire, and which involves individual judgment and action within the overall framework of the commander's intent. 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. Theory X holds a pessimistic view of employees in the sense that they cannot work in the absence of incentives. 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. The control and coercion involved in this style of management could lead to employee frustration, de-motivate employees and damage relationships within the organization. The employee is not responsible and hence must be supervised or directed towards the goal of the organization. Hi, They are inherently lazy, lack ambition and prefer to be directed on what to do rather than assume responsibility on their own. People need more than monetary rewards or the threat of punishment to do their jobs. The secret to their success was not what they were producing but how they were managing their peopleJapanese employees were engaged, empowered, and highly productive. One view holds that in traditional organizations members expect to be told what to do and are willing to follow highly structured directions. Leaders hold a unique position in their groups, exercising influence and providing direction. In modern days and times, Theory Y works more effectively. Once those needs have been satisfied, the motivation disappears. The employee must be supervised or looked upon so that he or she works appropriately. Most managers will likely use a mixture of Theory X and Theory Y. Although both styles of management can motivate people, the success of each will largely depend on your team's needs and wants and your . The manager allows for collaborative decision-making and amicable relations within the organization or firm. [3] Maslow's hierarchy of needs consists of physiological needs (lowest level), safety needs, love needs, esteem needs, and self-actualization (highest level). The worker is assumed to be immature and viewed as being very gullible. Discover each theory and the respective qualities of each, as well as how self-fulfilling prophecies come into play for managers. Managers in newer organizations use this theory as now, people want more than monetary rewards and control. It is possible that the originator, and subsequent researchers, of these contrasting theories did not place much emphasis on these attributes as being inherent in humans, but workplace reality suggests these two distinct facts are real. He believed that workers who were continuously being treated as robots with no thinking ability, at one point eventually start behaving like robots. Peopleare motivated by money and fears about their job security. He defines himself as his companys philosopher. This theory has also been criticized for being too idealistic and unachievable by some critics. Hate the idea of having to go to work and do so only to earn a paycheck and the security that it offers. Theory X managers are likely to believe that: a. the average employee dislikes work and will seek to avoid it when possible. So they must be controlled and coerced to get the job done. Previous post: Improving Problem Solving Skills. 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. Theory X. Theory Y is used by managers who believe employees are responsible, committed and self-motivated. Theory Y leaders are much more likely to adopt involvement-oriented approaches to leadership and organically designed organizations for their leadership group. [8] As a result, Theory Y followers may have a better relationship with their boss, creating a healthier atmosphere in the workplace. Evidence suggests that managers from different parts of the global community commonly hold the same view. The hard approach results in hostility, purposely low output, and extreme union demands. Theory X management hinders the satisfaction of higher-level needs because it doesn't acknowledge that those needs are relevant in the workplace. Todays digital workplace, however, is a place of collaboration. An individual who was self- motivated was best left alone in a. The Theory X manager assumes employees hate the idea of having to go to work and do so only to earn a paycheck and the security it offers. 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. Theory X managers are likely to believe that employees are lazy, fear-motivated, and in need of constant direction. the average person dislikes work and will seek to avoid it when possible. Theory X assumes that people dislike work and will avoid doing anything they don't have to do. They are not lazy at all. lessons in math, English, science, history, and more. He mentioned Theory X and Theory Y in his book, The Human Side of Enterprise, published in 1960. Instead, McGregor feels that an approach located in the middle would be the most effective implementation of Theory X.[7]. People will be self-directed and creative to meet their work and organizational objectives if they are committed to them. Are inherently lazy, lack. succeed. Our mission is to improve educational access and learning for everyone. This website helped me pass! The power base in many organizations shifted to marketing as competition became a game of advertising aimed at differentiating products in the consumers mind. went on to propose his own model of workplace motivation, Theory Z. However, high-involvement organizations frequently encourage their formal and informal leaders to exercise the full set of management roles. Management Styles Theories, Types & Examples | What is Management Style? They lack ambition and physiological and safety factors motivate them. There are several ways to lead an organization and this theory allows fluidity. [7] The hard approach depends on close supervision, intimidation, and immediate punishment. Under these conditions, people will seek responsibility. 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. They are not inherently irresponsible or lazy. Theory X, although outdated, is still used in larger firms, wherein a higher number of people are employed and deadlines are to be met. 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. Different situations call for different configurations of knowledge, skills, and abilities. McGregor called this Theory X. Finally, the permissive democrat shares power with group members, soliciting involvement in both decision-making and execution. d. job satisfaction is primarily related to higher order needs. 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. 'Be careful what you wish for, because you just might get it. how that behavior shapes behavior! And do so only to earn a paycheck and the group willingly responds their!, have a tendency to micromanage or, conversely, you may prefer to take a more hands-off.... And efforts, for instance, have a tendency to micromanage and employees. People want more than monetary rewards or the threat of punishment to do that behavior shapes the behavior of around... 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