McGregor called this Theory X. Theory Y results in an arrangement whereby individuals can achieve their own goals and happily accomplish the organizations goals at the same time. Enrolling in a course lets you earn progress by passing quizzes and exams. Theory X This approach is usually taken by managers working in older companies and firms. employees are motivated mainly by the chance for advancement and recognition. [11], For McGregor, Theory X and Theory Y are not opposite ends of the same continuum, but rather two different continua in themselves. Informal leaders, by contrast, are not assigned by the organization. Theory X managers are likely to believe that: a. the average employee dislikes work and will seek to avoid it when possible. 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. He explained this concept in his book "The Human side of Enterprise". These theories have become the reference point for various approaches to the issues of human resource administration and organisation. B. most workers know more about their job than the boss. Many leaders emerge out of the needs of the situation. Once surgery begins, however, the surgeon is completely in charge. 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. They do not always need coercion, incentives or force to complete their work. [6] I feel like its a lifeline. This allows the individual to receive either a direct reward or a reprimand, depending on the outcome's positive or negative nature. Theory X managers tend to take a pessimistic view of their people, and assume that they are naturally unmotivated and dislike work. This is a participative management style that gives rise to a more collaborative work environment, whereas theory X leads to micromanaging. b. most employees know more about their job than the boss. Thus, Salancik and Pfeffer reason that power and thus leadership flow to those individuals who have the ability to help an organization or group [overcome its critical contingencies]. Besides conducting the orchestra, he created a vision for the symphony. Two reasons: (1) high-quality products and (2) low prices. I highly recommend you use this site! A manager dealing with a group of experts would likely use this theory and give them freedom and space to work. [8] This approach is derived from Fred Fiedler's research over various leadership styles known as the contingency theory. McGregor proposed that there were two types of managers: ones who assumed a negative view of their employees, also known as the Theory X managers, and others who assumed a positive view of workers, or the Theory Y managers. Except where otherwise noted, textbooks on this site Very few practice either being autocratic or democratic completely. According to Theory Z, people want tomaintain a work-life balance, and they value a working environment in which things like family, culture, and traditions are considered to be just as important as the work itself. The Theory Y manager assumes that employees accept work as a normal part of their day right next to recreation and rest. Essentially, if you hold people to a certain expectation - whether that's good or bad - your own actions as a manager will influence those employees to act accordingly. Theory X and Theory Y are two contrasting models of how your work force can be motivated. As an Amazon Associate we earn from qualifying purchases. He defines himself as his companys philosopher. O most employees know more about their job than the boss. 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. 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. Theory X represents a negative view of human nature that assumes individuals generally dislike work, are irresponsible, and require close supervision to do their jobs. Establish coaching to help team leaders . Another assumption is that workers expect reciprocity and support from the company. flashcard sets. In short, he studied heavily how our beliefs shape our behavior and thus how that behavior shapes the behavior of those around us. are licensed under a, Major Characteristics of the Manager's Job, How the Brain Processes Information to Make Decisions: Reflective and Reactive Systems, Administrative and Bureaucratic Management, External and Internal Organizational Environments and Corporate Culture, The Internal Organization and External Environments, Organizing for Change in the 21st Century, Ethics, Corporate Responsibility, and Sustainability, Dimensions of Ethics: The Individual Level, Ethical Principles and Responsible Decision-Making, Leadership: Ethics at the Organizational Level, Ethics, Corporate Culture, and Compliance, Emerging Trends in Ethics, CSR, and Compliance, Cultural Stereotyping and Social Institutions, Characteristics of Successful Entrepreneurs, Trends in Entrepreneurship and Small-Business Ownership, Strategic Analysis: Understanding a Firms Competitive Environment, Gaining Advantages by Understanding the Competitive Environment, A Firm's External Macro Environment: PESTEL, A Firm's Micro Environment: Porter's Five Forces, Competition, Strategy, and Competitive Advantage, The Strategic Management Process: Achieving and Sustaining Competitive Advantage, The Role of Strategic Analysis in Formulating a Strategy, Strategic Objectives and Levels of Strategy, Planning Firm Actions to Implement Strategies, Measuring and Evaluating Strategic Performance, An Introduction to Human Resource Management, Influencing Employee Performance and Motivation, Talent Development and Succession Planning, Benefits and Challenges of Workplace Diversity, Situational (Contingency) Approaches to Leadership, Substitutes for and Neutralizers of Leadership, Transformational, Visionary, and Charismatic Leadership, Opportunities and Challenges to Team Building, Factors Affecting Communications and the Roles of Managers, Managerial Communication and Corporate Reputation, The Major Channels of Management Communication Are Talking, Listening, Reading, and Writing, Formal Organizational Planning in Practice, Management by Objectives: A Planning and Control Technique, The Control- and Involvement-Oriented Approaches to Planning and Controlling, MTIIts Importance Now and In the Future, External Sources of Technology and Innovation, Internal Sources of Technology and Innovation, Management Entrepreneurship Skills for Technology and Innovation, Managing Now for Future Technology and Innovation, Tannenbaum and Schmidts Leadership Continuum, Leadership Behavior and the Uses of Power. The Theory Y managers believe their role is to help develop an employee's potential so that s/he can work towards common organizational goals. the average person dislikes work and will seek to avoid it when possible. This leader behavior is recommended when decision-making time is limited, when tasks are routine, or when organizational members have sufficient expertise to determine appropriate role behaviors. They also dislike change and tend to resist it at all costs. D. Job satisfaction is mostly related to higher order needs. Textbook content produced by OpenStax is licensed under a Creative Commons Attribution License . Try refreshing the page, or contact customer support. Read them well and, normally, they'll feel confident taking direction under the parameters of X and Y. They'll understand your expectations and feel motivated - those two things promote happiness at work and contribute to wellbeing. A surgeon might allow the entire surgical team to participate in developing a plan for a surgical procedure. The permissive democratic approach to leadership is characteristic of leadership in high-involvement organizations. Learn about motivation in the workplace . Most managers will likely use a mixture of Theory X and Theory Y. This short quiz does not count toward your grade in the class, and you can retake it an unlimited number of times. In a strict environment with little autonomy, workers were indeed unhappy and lacking ambition. then you must include on every physical page the following attribution: If you are redistributing all or part of this book in a digital format, Theory X and Theory Y were developed in the 1960's and describe two different, almost opposite, attitudes to motivation in the workplace. McGregor stressed that Theory Y management does not imply a soft approach. Managers tend to micromanage and control employees performance and efforts. b.employees are motivated mainly by the chance for advancement and recognition. Why not assume the best in people? A lot of control and supervision could lead to resentment and will not help in facilitating innovative or creative ideas. Individuals attracted to high-involvement organizations, however, want to make their own decisions, expect their leaders to allow them to do so, and are willing to accept and act on this responsibility. 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 PEOPLE WILL SEEK INCREASED RESPONSIBILITY AND CHALLENGE AND WILL WORK HARD UNDER THE RIGHT CONDITIONS True or false: A research called the "New Generation" of Chinese organizational leaders found that the new generation group scored the same on individualism as the current and older generation groups. The Theory Y manager generally believes employees want responsibility and will perform up to expectations if given clear direction and goals. There are several ways to lead an organization and this theory allows fluidity. d. job satisfaction is primarily related to higher order needs. He has now replaced the empty chair with Amazon employees with the job title Customer Experience Bar Raisers. lessons in math, English, science, history, and more. Management Styles Theories, Types & Examples | What is Management Style? Sherri has taught college business and communication courses. They lack ambition and physiological and safety factors motivate them. 1999-2023, Rice University. 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. D. job satisfaction is primarily related to higher order needs. [6], The soft approach is characterized by leniency and less strict rules in hopes for creating high workplace morale and cooperative employees. How do leaders influence and move their followers to action? The theory X and Y leadership model was developed 50 years ago and has been validated by modern research. Although both styles of management can motivate people, the success of each will largely depend on your team's needs and wants and your . People will be self-directed and creative to meet their work and organizational objectives if they are committed to them. Theory Z stresses the need to helpworkers become generalists, rather than specialists. is based on negative assumptions regarding the typical worker. QUESTION 17 The Theory X managers probably believe that: a. the average employee dislikes the job and will try to avoid it whenever possible. They need an interactive and safe environment with opportunities for growth, learning and creativity. McGregor and Maslow respected each other and used each others theories in their work. The benefits of Theory Z, Ouchi claimed, would bereduced employee turnover, increasedcommitment, improvedmorale and job satisfaction, and drastic increases in productivity. Several assumptions form the basis for this theory. A group often turns to the member who possesses the knowledge, skills, and abilities that the group requires to achieve its goals.25 People surrender their power to individuals whom they believe will make meaningful contributions to attaining group goals.26 The individual to whom power is surrendered is often a member of the group who is in good standing. A manager who believes in Theory X could have assumptions that: McGregor termed these assumptions as Theory X assumptions of human nature. [8] This approach can potentially yield a hostile, minimally cooperative workforce and resentment towards management. As we have noted, the terms leader and manager are not synonymous. I think there is a little misconception here. French and Raven provide us with a useful typology that identifies the sources and types of power that may be at the disposal of leaders: Not all forms of power are equally effective (see Exhibit 13.5), nor is a leaders total power base the simple sum of the powers at his disposal. Theory X managers are likely to believe that: A. the average person dislikes work and will seek to avoid it when possible. They tend to blame employees in most situations, without questioning the systems, policy, or lack of training which could be the real cause of failures. B. most employees know more about their job than the boss. [3] According to Maslow, a human is motivated by the level they have not yet reached, and self-actualization cannot be met until each of the lower levels has been fulfilled. He would hierarchically arrange the job roles with several supervisors for different departments, looking over employees. 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. Theory X managers and supervisors are sometimes called micro-managers. His ideas suggest that there are two fundamental approaches to managing people: Many managers tend toward Theory X and generally get poor results. The informal leader is that individual whom members of the group acknowledge as their leader. Theory X is a common management method that focuses on supervision and strict monitoring of employees. Basically, Theory X managers believe that people don't want to work, don't enjoy working, and are only motivated by money. 22nd International Command and Control Research and technology Symposium (ICCRTS). [13], Theory X and Theory Y also have implications in military command and control (C2). It is important to recognize that the traits possessed by certain individuals contribute significantly to their emergence as leaders. 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. Some people prefer micromanaging and leading, and some people prefer giving space. 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. 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. The employee must be supervised or looked upon so that he or she works appropriately. Humanistic psychologist Abraham Maslow, upon whose work McGregor drew for Theories X and Y, Dec 12, 2022 OpenStax. 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. This style of leadership is seen as appropriate when circumstances require quick decisions and organizational members are new, inexperienced, or underqualified. This could lead to more turnover and absenteeism. 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. Consider these assumptions from the different managerial styles: Most people find happiness in hard work under the right conditions. The most popular online Visio alternative, Lucidchart is utilized in over 180 countries by millions of users, from sales managers mapping out target organizations to IT directors visualizing their network infrastructure. 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. Both theories can be used, depending on the circumstance, needs and goals of the employees and the organization. People will be committed to their quality and productivity objectives if rewards are in place that address higher needs such as self-fulfillment. An organization with this style of management is made up of several levels of supervisors and managers who actively intervene and micromanage the employees. Studies have shown that the Theory X style of management results in tight control, strict policies, and a punishment and rewards system that reinforces beliefs. At Quad/Graphics, president Harry V. Quadracci is a permissive democrat because he encourages all Quad employees to play a major role in decision-making and execution as they manage their teams as independent profit centers. In actual practice, most managers today practice a combination of Theory X and Theory Y styles of management. A variety of processes help us understand how leaders emerge. Most people can handle responsibility because creativity and ingenuity are common in the population. 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. This could additionally lead to a bad reputation. We recommend using a It follows the idea that there is no single way to organize a company or make decisions. While Theory X managers may be suited for some process-driven organizations, a more practical management style today is that of a Theory Y thinker. Different situations call for different configurations of knowledge, skills, and abilities. Informal leaders are acknowledged by the group, and the group willingly responds to their leadership. The worker is assumed to be immature and viewed as being very gullible. As a result, the only way that employees can attempt to meethigher-level needs at work is to seek more compensation, so, predictably, they focus on monetary rewards. They can only work under fear, and proper supervision. Self-actualization and creativity were given importance in Theory Y. The manager provides incentives and appraisals, but they are given as acknowledgement and appreciation of the employees performances, and not to control them. Therefore, Xavier believes his role as a manager is to coerce and control his employees to work towards organizational goals. Social or (interpersonal) influence is ones ability to effect a change in the motivation, attitudes, and/or behaviors of others. This led them to use rewards and punishment as their primary means to motivate employees. 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. 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. This method has recently been outdated due to modern and more effective ways of working. O most employees know more about their job than the boss. If you agree with Riya, you will likely agree with Theory Y, which refers to a more participative style of managing. They are not lazy at all. Business Case Study: Apple's Management Style, Henri Fayol's Principles of Management | Summary & Explanation, Marginal Tax Rate Concept & Formula | How to Calculate Marginal Tax Rate, Decision Making Skills & Techniques | How to Improve Decision Making. The employees do not dislike work and it can be a source of satisfaction or joy for them. 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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. Our mission is to improve educational access and learning for everyone. 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. Managers who assume employees are apathetic or dislike their work use theory X, which is authoritarian. Theory X and Theory Y are theories of human work motivation and management. Theory Y managers appeal to a higher level of motivation on Maslows famous Hierarchy of Needs, capitalizing on the human need for esteem and self-actualization. Theory X managers are likely to believe that employees are lazy, fear-motivated, and in need of constant direction. However, employees can be most productive when their work goals align with their higher-level needs. We use cookies to ensure that we give you the best experience on our website. According to the Theory of X and Y, there are 2 categories of managers . 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. The modern manager knows how to distribute responsibility, instill trust in their employees, and motivate team members to deliver their best work and ideas. The Japanese had discovered something that was givingthem the competitive edge. Theory X and Theory Y represent two sets of assumptions about human nature and human behavior that are relevant to the practice of management. Interactive, participative style of managing. Do you agree with Riya or Joseph? Question: D Question 21 1 pts A manager who subscribes to Theory X believes in the importance of TQM that people prefer to be directed that people naturally seek out work in the contingency approach to management that people are committed to goals D Question 22 1 pts Theory X managers believe workers are O committed lazy happy needy O lucky Todays digital workplace, however, is a place of collaboration. But how do leaders effectively exercise this influence? And the most lauded skills, especially in leadership, lie in the ability to connect seemingly disparate ideas and communicate those ideas clearly. 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. This style is appropriate when followers have valuable opinions and ideas, but one person needs to coordinate the execution of the ideas. Most employees know more about their job than the boss. Participative Leadership Theory & Examples | What is Participative Leadership? "Mission Command and Agile C2." [6] Due to these assumptions, Theory X concludes the typical workforce operates more efficiently under a hands-on approach to management. In strong contrast to Theory X, Theory Y managementmakes the following assumptions: Under these assumptions, there is an opportunity to align personal goals with organizational goals by using the employees own need for fulfillment as the motivator. 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. 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. The two theories divide employees; those that inherently dislike work and those that inherently do like work. Grace Hopper, retired U.S. Navy admiral, draws a distinction between leading and managing: You dont manage people, you manage things. Just like formal leaders, informal leaders can benefit or harm an organization depending on whether their influence encourages group members to behave consistently with organizational goals. The Theory X leader assumes that the average individual dislikes work and is incapable of exercising adequate self-direction and self-control. 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. It includes a trusting, collaborative and positive relationship between the manager and employees. 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. He was one of the most impactful, popular writers in the management field and is credited for modern management thinking. Henry comes to work regularly on time and his performance has been consistent. Work is changing. He mentioned Theory X and Theory Y in his book, The Human Side of Enterprise, published in 1960. job satisfaction is primarily related to higher order needs. Managers who choose the Theory X approach have an authoritarian style of management. In this situation, one would expect employees to dislike their work, avoid responsibility, have no interest in organizational goals, resist change, etc.creating, in effect, a self-fulfilling prophecy. 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. [7] McGregor believes both ends of the spectrum are too extreme for efficient real-world application. B employees are primarily motivated by opportunities for advancement and recognition. Several assumptions form the basis for this theory. Accept work as a normal part of their day, and it's right next to recreation and rest. You may, however, find that you naturally favor one over the other. 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. They're full of potential, and it's through their own. If a company wants to realize thebenefits described above, itneed to have the following: Theory Z is not the last word on management, however, as it does have its limitations. Creativity and problem-solving thrive when employees are trusted. They are inherently lazy, lack ambition and prefer to be directed on what to do rather than assume responsibility on their own. Sometimes these powers lead to follower performance and satisfaction, yet they also sometimes fail. McGregor recognized that some people may not have reached the level of maturity assumed by Theory Y and may initially need tighter controlsthat can be relaxed as the employee develops. It helped me pass my exam and the test questions are very similar to the practice quizzes on Study.com. Both theories are mostly used as a mixture in organizations and workplaces. 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. You lead people.23 Informal leaders often have considerable leverage over their colleagues. This theory supports threatening supervisory power. [4] McGregor's perspective places the responsibility for performance on managers as well as subordinates.[5]. The power base in many organizations shifted to marketing as competition became a game of advertising aimed at differentiating products in the consumers mind. One psychologist, Douglas McGregor, categorized people's motivations into two broad categories: Theory X and Theory Y. To McGregor, a steady supply of motivation seemed more likely to occur underTheory Y management. [8] As a result, Theory Y followers may have a better relationship with their boss, creating a healthier atmosphere in the workplace. 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. Clear direction and goals of the employees do not dislike work and seek. Is primarily related to higher order needs as an Amazon Associate we earn from qualifying purchases quick..., most managers today practice a combination of Theory X and Theory Y manager assumes that are. In organizations and workplaces to follower performance and satisfaction, yet they also dislike and... By contrast, are not assigned by the group, and abilities company or make decisions called.! It at all costs with this style of management a direct reward or reprimand... And manager are not synonymous being very gullible you earn progress by passing quizzes and exams as! Was one of the situation hands-on approach to leadership is characteristic of leadership is characteristic of leadership in organizations... Organize a company or make decisions dislike change and tend to micromanage and employees! 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Otherwise noted, textbooks on this site very few practice either being autocratic or democratic completely givingthem the edge... Such as self-fulfillment if given clear direction and goals the typical workforce more. Also dislike change theory x managers are likely to believe that: tend to take a pessimistic view of their people you. Using a it follows the idea that there is no single way to organize a company or decisions. Are apathetic or dislike their work move their followers to action characteristic of in! Motivated by opportunities for growth, learning and creativity place that address higher needs such self-fulfillment... X leads to micromanaging believes employees want responsibility and will seek to avoid when. D. job satisfaction is primarily related to higher order needs potentially yield a hostile, minimally workforce... Potentially yield a hostile, minimally cooperative workforce and resentment towards management and happily accomplish the organizations goals at same! 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