The answer often is that a leaders social influence is the source of his power. Theory X managers believe employees must be controlled to meet organizational goals. He was one of the most impactful, popular writers in the management field and is credited for modern management thinking. In fact, when proper motivations and rewards are in place, employees are not only willing but purposely driven to seek out responsibility and challenges on their own. most employees know more about their job than the bossd. In his 1960 book, The Human Side of Enterprise, McGregor proposed two theories by which managers perceive and address employee motivation. [3] Maslow's hierarchy of needs consists of physiological needs (lowest level), safety needs, love needs, esteem needs, and self-actualization (highest level). [8] As a result, Theory Y followers may have a better relationship with their boss, creating a healthier atmosphere in the workplace. It is to McGregors thorough research and curiosity in behavior and incentive that we owe our current understanding of Theory X and Theory Y. B employees are primarily motivated by opportunities for advancement and recognition. 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. Many consider such actions necessary for self-managing work teams to succeed. 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. In a strict environment with little autonomy, workers were indeed unhappy and lacking ambition. Management believes employees' work is based on their own self-interest. Project Management. Older, strictly hierarchical conceptions of C2, with narrow centralization of decision rights, highly constrained patterns of interaction, and limited information distribution tend to arise from cultural and organizational assumptions compatible with Theory X. Theory Y managers are likely to believe that employees are motivated by the value of their contribution. O most employees know more about their job than the boss. So grab your bomb repellent while we explore these two different types of managers by discussing the assumptions of each. As an Amazon Associate we earn from qualifying purchases. Theory Y managers believe employees would be motivated to meet goals in the absence of organizational controls, given favorable conditions. 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. Make team leaders aware of the negative consequences of the Theory X management style and the positive consequences of the Theory Y management style. Although born and educated in America, Ouchi was of Japanese descent and spent a lot of time in Japan studying the countrys approachto workplace teamwork and participative management. Consider these assumptions from the different managerial styles: Most people find happiness in hard work under the right conditions. It follows the idea that there is no single way to organize a company or make decisions. d. job satisfaction is primarily related to higher-order needs. http://www.envisionsoftware.com/articles/Theory_X.html, https://pixabay.com/en/idea-businessman-man-outline-suit-1460935/, http://vle.du.ac.in/mod/book/view.php?id=8344&chapterid=10377, CC BY-NC-SA: Attribution-NonCommercial-ShareAlike, https://commons.wikimedia.org/wiki/File:Toyota_Plant_Ohira_Sendai.jpg. 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. An organization with this style of management is made up of several levels of supervisors and managers who actively intervene and micromanage the employees. During the 1980s, American business and industry experienceda tsunami of demand for Japanese products and imports, particularly in the automotive industry. [4], McGregor also believed that self-actualization was the highest level of reward for employees. Try refreshing the page, or contact customer support. Implementing a Theory Y-focused leadership approach requires modern tools that can complement the collaborative workplace. Hi, This theory states that managers evaluate the workplace and choose their leadership style based upon both internal and external conditions presented. workers must be controlled in order to achieve a company's goalsb. The role of the Theory X manager is to coerce and control employees to work towards organizational goals. We recommend using a Jack Welch was the formal leader of General Electric, and Leonard Bernstein was the formal leader of the symphony. Theory X managers tend to take a pessimistic view of their people, and assume that they are naturally unmotivated and dislike work. The employee must be supervised or looked upon so that he or she works appropriately. Under these conditions, people will seek responsibility. 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. [13], Theory X and Theory Y also have implications in military command and control (C2). 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. What might be less immediately understandable are the differing effects of Theory X and Y on resulting behavior and productivity. A manager who believes in Theory X could have assumptions that: McGregor termed these assumptions as Theory X assumptions of human nature. [6] 147 lessons If you continue to use this site we will assume that you are happy with it. This management style assumes that the typical worker has little ambition, avoids responsibility, and is individual-goal oriented. In fact, most work groups contain at least one informal leader. I think there is a little misconception here. I would definitely recommend Study.com to my colleagues. Theory Y is based on positive assumptions regarding the typical worker. job satisfaction is primarily related to higher order needs. Its like a teacher waved a magic wand and did the work for me. As a consequence, they exert a highly controlling leadership style. We refer to this person as the designated leader (in this instance the designated and formal leader are the same person). This theory has also been criticized for being too idealistic and unachievable by some critics. According to the Theory of X and Y, there are 2 categories of managers . Motivation occurs only at the physiological and security levels of Maslows hierarchy of needs. Advertising, Public relations, Marketing and Consumer Behavior, Psychology, Behavioral And Social Science. They can be motivated internally to complete their tasks and not always need supervision or micromanaging. 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 organization with this style of management encourages participation and values individuals' thoughts and goals. 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. Establish coaching to help team leaders . Jeff Bezos, founder and CEO of Amazon, used to bring an empty chair to meetings to signal and remind participants of the most important people that did not have a seat at the table: the customers. Managers give employees some free space and flexibility to work. The result was Theory Za developmentbeyond Theory X and Theory Y thatblended the best of Eastern and Western management practices. Where a Theory X manager might threaten loss of employment in order to get employees to work on a Saturday, a Theory Y manager might appoint a temporary leadership title to anyone who chooses to show up to work on a Saturday. What is the role of the leader and follower in the leadership process? Managerial Functions in the International Organization. Theory Y managers will make different choices about how to arrange team members and workflows, how to talk to people, how to reward and incentivize, etc. But . CRC Press; New York; pp. consent of Rice University. He referred to these opposing motivational methods as Theory X and Theory Y management. Lucidchart makes it easy to share processes, information, and ideas with a team from a single centralized location. Theory X managers are likely to believe that: A.the average person dislikes work and will seek to avoid it when possible. People need more than monetary rewards or the threat of punishment to do their jobs. d. job satisfaction is primarily related to higher order needs. Managers let employees use self-direction and self-control to do their jobs instead of coercing or forcing them. As a consequence, they exert a highly controlling leadership style. As a member, you'll also get unlimited access to over 84,000 The theories attempt to show how a manager's perception of his team affects the . It follows the traditional route of direction and control. However, employees can be most productive when their work goals align with their higher-level needs. The capacity for creativity spreads throughout organizations. Dec 12, 2022 OpenStax. Reason In theory X, the manager believes that employees are lazy, and they avoid doing work properly. The impression that a manager makes a personal assumptions of employees attitudinal bias concerning their involvement in work activities is out of place. 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. Both sides seek to satisfy some personal pleasures and needs. Typically, managers who apply theory X are more authoritarian. Grace Hopper, retired U.S. Navy admiral, draws a distinction between leading and managing: You dont manage people, you manage things. Theory X managers are likely to believe that: a. the average employee dislikes work and will seek to avoid it when possible. 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. 22nd International Command and Control Research and technology Symposium (ICCRTS). Its assumptions about the value of individual initiative make it more a Theory-Y than a Theory X philosophy.[15]. As soon as that need is satisfied, the employees have no additional motivation for coming to work. They are not lazy at all. Humanistic psychologist Abraham Maslow, upon whose work McGregor drew for Theories X and Y, 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. Textbook content produced by OpenStax is licensed under a Creative Commons Attribution License . Yoko must also try to harness the motivational energy of her employees through things such as giving them more autonomy, responsibility, power, trust and feedback and involving them in the decision-making process. To McGregor, a steady supply of motivation seemed more likely to occur underTheory Y management. Although Theory Y encompasses creativity and discussion, it does have limitations. Several assumptions form the basis for this theory. B. most workers know more about their job than the boss. In Theory X, Douglas McGregor summarizes the traditional view of management in a number of characteristic assumptions in which autocratic leadership style, close supervision and the hierarchical principle are the key elements. They lack ambition and physiological and safety factors motivate them. 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. 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. While there is a more personal and individualistic feel, this leaves room for error in terms of consistency and uniformity. Theory Y, on the other hand, holds an optimistic opinion of employees. A formal leader is that individual who is recognized by those outside the group as the official leader of the group. Theory X holds a pessimistic view of employees in the sense that they cannot work in the absence of incentives. Previous post: Improving Problem Solving Skills. 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. It is also used in unskilled labor organizations or production firms. Theory X and Theory Y are two contrasting models of how your work force can be motivated. employees are motivated mainly by the chance for advancement and recognition. Question: QUESTION 17 Theory X managers are likely to believe that: a. the average employee dislikes work and will seek to avoid it when possible. This could lead to more turnover and absenteeism. This generally involves a more 'hands-on' approach and inevitably micromanaging your team's workload to ensure it is done to . University-based ROTC programs and military academies (like West Point) formally groom people to be leaders. C. employees are motivated mainly by the chance for advancement and recognition. 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. Once those needs have been satisfied, the motivation disappears. are not subject to the Creative Commons license and may not be reproduced without the prior and express written All other trademarks and copyrights are the property of their respective owners. This managerial style is more effective when used in a workforce that is not essentially motivated to perform. Theory X assumes that people dislike work and will avoid doing anything they don't have to do. They can use self-direction and self-control in this aspect. McGregors Theory X and Theory Y posits two different sets of attitudes about the individual as an organizational member.36 Theory X and Y thinking gives rise to two different styles of leadership. These theories have become the reference point for various approaches to the issues of human resource administration and organisation. However, because there is no optimal way for a manager to choose between adopting either Theory X or Theory Y, it is likely that a manager will need to adopt both approaches depending on the evolving circumstances and levels of internal and external locus of control throughout the workplace. In actual practice, most managers today practice a combination of Theory X and Theory Y styles of management. Some critics believe that current methods of measuring unemployment are inaccurate in terms of the impact of unemployment on people as these methods do not take into account the 1.5% of the available working population incarcerated in US prisons (who may or may not be working while they are incarcerated); those who have lost their jobs and have . Theory X management hinders the satisfaction of higher-level needs because it doesn't acknowledge that those needs are relevant in the workplace. Employees ' work is based on their own self-interest see how they apply in leadership. Find happiness in hard work under the right conditions X management style assumes the! The workplace American business and industry experienceda tsunami of demand for Japanese products imports! Person ) the work for me refreshing the page, or contact customer support a waved. Work and will seek to avoid it when possible control ( C2 ) participation and values individuals ' thoughts goals! 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