Theory X and Theory Y
The
eminent psychologist Douglas McGregor has
given his theory of motivation called Theory X and Theory Y. He first presented his theory in a classic
article titled 'The Human Side of Enterprise'. He treated traditional
approach to management as 'Theory X' and the professional approach to
management as 'Theory Y'. His theory refers to two sets of employees based on the perception of human nature.
Here, theory X and theory Y are two sets of assumptions about the nature of Managers.
Theory X
Theory X led managers to refuse to relinquish
control over work and to use harsh methods of behavior management. Theory X
managers would favor the hierarchical chain of command, motivation through
punishment or reward and supervision within narrow and rigid parameters.
• Employees are considered to be lazy by default and dislike work.
• Employees must be coerced, threatened to work.
• They must be directed or controlled in order to meet the objectives
• They dislike additional responsibility
• They seek security above all else.
• Employees must be coerced, threatened to work.
• They must be directed or controlled in order to meet the objectives
• They dislike additional responsibility
• They seek security above all else.
Theory Y
In contrast to the notions in Theory X that
made negative, resistant and lazy assumptions about managers’ beliefs about
their subordinates in the workplace, McGregor developed a management view that
was in most ways in direct opposition. Theory Y suggests a contrary view. Work
is a natural human behaviour and it is something they want do, for the most part. Theory Y
holds that humans are problem solvers, innovative and creative and are
self-motivated by self-actualization needs much more than by punishments or
rewards. Managers believe and trust their employees and the environment created
is an ‘us and them’ relationship, instead of a Theory X ‘us versus them’ view,
where collegiality is not only possible, but also encouraged.
• Employees are self-motivated and tend to seek responsibility
• Organisation is easy to steer towards strategic goals because of acceptance from employees
• People are creative and have the imagination to come up with breakthrough innovations
• Work is natural and is distributed easily
• Managers tend to have liberal control due to natural growth
Theory Z:
Theory Z deals with the way in
which workers are perceived by managers, as well as how managers are perceived
by workers; is created and developed by William Ouchi. Theory Z offers the
notion of a hybrid management style which is a combination of a strict American
management style and a strict Japanese management style this theory speaks of
Ringi System of Management. This decision-making system is the collective
decision-making process and is highly decentralized. Only after the consensus
is reached the decision is taken. If the decision is successful, then the one
who has advocated it gets the credit but interesting part is that in the event
of unsuccessful decision-making, top management takes the responsibility for
the failure. Theory Z emphasizes things such as job rotation, broadening of
skills, generalization versus specialization, and the need for continuous
training of workers.
Theory Z assumes that workers
tend to want to build co-operative and intimate working relationships with
those that they work for and with, as well as the people that work for them.
Also, Theory Z workers have a high need to be supported by the company, and
highly value a working environment in which such things as family, cultures and
traditions, and social institutions are regarded as equally important as the
work itself. These types of workers have a very well developed sense of order,
discipline, and moral obligation to work hard, and a sense of cohesion with
their fellow workers. Finally, Theory Z workers, it is assumed, can be trusted
to do their jobs to their utmost ability, so long as management can be trusted
to support them and look out for their well being.
Comparison of Management Theory:
Conclusion:
No theory is bad or good. If we take into consideration of
Maslow’s hierarchy of needs, then it can be said that at the bottom of the
pyramid, money is the main motivator for work. Theory X managers exploit this
human behavior characteristics to maximize organizational profit. It is
predominately seen in labour intensive work like steel plants in India. However
as we go up in the pyramid, self-actualization is the main motivator. Theory Y
managers tries to maximize organizational growth to promote self-esteem,
confidence, achievement, respect of others, and respect by others.