It follows the idea that there is no single way to organize a company or make decisions. 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. As a result, they think that team members need to be prompted, rewarded or punished constantly to make sure that they complete their tasks. Theory X managers are likely to believe that: A. the average person dislikes work and will seek to avoid it when possible. Two reasons: (1) high-quality products and (2) low prices. C. employees are motivated mainly by the chance for advancement and recognition. Work in organizations that are managed like this can be repetitive, and people are often motivated with a "carrot and stick" approach. It is believed that managers who adopted theory X produce poor results while managers who take theory Y are likely to deliver better . 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. 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. Lucidchart makes it easy to share processes, information, and ideas with a team from a single centralized location. Work in organizations that are managed like this can . [4], McGregor also believed that self-actualization was the highest level of reward for employees. The two theories divide employees; those that inherently dislike work and those that inherently do like work. 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. Douglas McGregor was a management professor at Massachusetts IT university, Cambridge in the 1950s, and published a few articles and books as well. job satisfaction is primarily related to higher-order needs. A variation on this theme is the concept of situational leadership, which advocates using different styles of management in different circumstances. It is to McGregors thorough research and curiosity in behavior and incentive that we owe our current understanding of Theory X and Theory Y. Finally, Theory Z assumes that given the right management support, workers can be trusted to do their jobs to their utmost ability and look afterfor their own and others well-being. Here, managers see employees as responsible and proactive. lessons in math, English, science, history, and more. employees are motivated mainly by the chance for advancement and recognitionc. I think there is a little misconception here. Jack Welch was the formal leader of General Electric, and Leonard Bernstein was the formal leader of the symphony. 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. is based on negative assumptions regarding the typical worker. The manager provides incentives and appraisals, but they are given as acknowledgement and appreciation of the employees performances, and not to control them. Managers who assume employees are apathetic or dislike their work use theory X, which is authoritarian. Most people avoid responsibility and need constant direction. One psychologist, Douglas McGregor, categorized people's motivations into two broad categories: Theory X and Theory Y. Some employees may take advantage of this freedom and not meet their work objectives. D.job satisfaction is primarily related to higher order needs. This could additionally lead to a bad reputation. They are not lazy at all. Most people can handle responsibility because creativity and ingenuity are common in the population. They are not inherently irresponsible or lazy. Theory X managers believe all actions should be traceable to the individual responsible. B. most workers know more about their job than the boss. 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. Research suggests that rationality is the most effective influence tactic in terms of its impact on follower commitment, motivation, performance, satisfaction, and group effectiveness.30. Typically, managers who apply theory X are more authoritarian. He mentioned Theory X and Theory Y in his book, The Human Side of Enterprise, published in 1960. If you agree with Riya, you will likely agree with Theory Y, which refers to a more participative style of managing. The employees could prefer responsibility and show willingness, depending on their traits. 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. Occupational inequality is the unequal treatment of people based on gender, sexuality, height, weight, accent, or race in the workplace. In 1960, Douglas McGregor published two theories (Theory X & Theory Y) of employee motivation based on the assumptions that managers make about employees. Most employees know more about their job than the boss. Theory X is a common management method that focuses on supervision and strict monitoring of employees. Theory Z stresses the need to helpworkers become generalists, rather than specialists. Enrolling in a course lets you earn progress by passing quizzes and exams. The hard approach results in hostility, purposely low output, and extreme union demands. [6] Managers are always looking for mistakes from employees, because they do not trust their work. 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. succeed. These theories have become the reference point for various approaches to the issues of human resource administration and organisation. They think most employees are only out for themselves and their sole interest in the job is to earn money. One assumption is that theyseek to build cooperative and intimate working relationships with their coworkers. Theory X managers are likely to believe that Select one: a. the average person dislikes work and will seek to avoid it when possible. Participative Leadership Theory & Examples | What is Participative Leadership? Hence, both theories used in moderation are key to good organization. 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 of X and Y is a theory on human work and motivation developed by Douglas McGregor. Empirical evidence concerning the validity of Theory X and Theory Y, however, was mixed. 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. Peopleare motivated by money and fears about their job security. Get unlimited access to over 84,000 lessons. Theory X can benefit a work place that utilizes an assembly line or manual labor. All other trademarks and copyrights are the property of their respective owners. 277. Managers may prefer one theory over the other; it depends on individual trait differences. 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. The permissive democratic approach to leadership is characteristic of leadership in high-involvement organizations. Theory X is a management style and way of thinking that suggests people are purely motivated by earning income to support their personal goals. Although both styles of management can motivate people, the success of each will largely depend on your team's needs and wants and your . Employees are initially obedient, but eventually dissatisfied and even rebellious, driving down productivity and achieving contradictory outcomes, further reinforcing the belief that workers are lazy and have to be externally motivated. Equity Theory of Motivation | Components, Importance & Examples, Business 307: Leadership & Organizational Behavior, Hospitality 309: Food & Beverage Service & Operations, Business 209: Mentoring & Leadership Development in the Workplace, Business 313: Organizational Communication, Psychology 107: Life Span Developmental Psychology, SAT Subject Test US History: Practice and Study Guide, SAT Subject Test World History: Practice and Study Guide, Geography 101: Human & Cultural Geography, Intro to Excel: Essential Training & Tutorials, Create an account to start this course today. An organization with this style of management encourages participation and values individuals' thoughts and goals. In a strict environment with little autonomy, workers were indeed unhappy and lacking ambition. The latter theory proposes that employees and managers can achieve a collaborative and trust-based relationship. This book uses the Several assumptions form the basis for this theory. When I say X, I don't mean the type that marks a treasure - in fact, quite the opposite is true. OpenStax is part of Rice University, which is a 501(c)(3) nonprofit. With this intuitive, cloud-based solution, everyone can work visually and collaborate in real time while building flowcharts, mockups, UML diagrams, and more. Managerial Functions in the International Organization. In order to achieve the most efficient production, a combination of both theories may be appropriate. He mentioned Theory X and Theory Y in his book, The Human Side of Enterprise, published in 1960. 9899. C. employees are motivated mainly by the chance for advancement and recognition. Self-determination Theory Self-determination theory suggests that people are motivated to grow and change by three Which of the following is a behavior that would most likely b Consider these assumptions from the different managerial styles: Most people find happiness in hard work under the right conditions. 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. As the challenges facing a group change, so too may the flow of power and leadership. Evidence suggests that managers from different parts of the global community commonly hold the same view. "C2 Re-Envisioned: the Future of the Enterprise." You lead people.23 Informal leaders often have considerable leverage over their colleagues. Learn about motivation in the workplace . Very few practice either being autocratic or democratic completely. Management believes employees' work is based on their own self-interest. Most people are gullible and unintelligent. What is the role of the leader and follower in the leadership process? Here, managers see employees as lazy and not proactive towards their work. 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. There are several ways to lead an organization and this theory allows fluidity. Therefore, Xavier believes his role as a manager is to coerce and control his employees to work towards organizational goals. Back in the 1950s and 60s, MIT School of Management student Douglas McGregor published a theory on different types of workers. "Theory X and Theory Y, Douglas McGregor", "Employee Management: Are You X or Are You Y", "Theory X and Theory Y: Understanding People's Motivations", A diagram representing Theory X and Theory Y, Another diagram representing Theory X and Theory Y, https://en.wikipedia.org/w/index.php?title=Theory_X_and_Theory_Y&oldid=1136635549, Creative Commons Attribution-ShareAlike License 3.0, This page was last edited on 31 January 2023, at 10:10. B employees are primarily motivated by opportunities for advancement and recognition. 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. It has been a fact that sustainability and employee turnover in corporations rely heavily on the different styles of management practiced at given companies nowadays. He believed that workers who were continuously being treated as robots with no thinking ability, at one point eventually start behaving like robots. In general, Theory X style managers believe their employees are less intelligent, lazier, and work solely for a sustainable income. The Situational Leader: Overview & Examples | What is a Situational Leader? 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. Work can be as natural as play if the conditions are favorable. B. most employees know more about their job than the boss. The company usesmonetary rewards and benefits to satisfy employees lower-level needs. 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 typically allow organizational members significant amounts of discretion in their jobs and encourage them to participate in departmental and organizational decision-making. The use of rationality, expert power, and/or moralistic appeal generally elicits commitment and the internalization of the leaders goals.29, Leaders who use referent and expert power commonly experience a favorable response in terms of follower satisfaction and performance. Informal leaders, by contrast, are not assigned by the organization. McGregor stressed that Theory Y management does not imply a soft approach. It would be beneficial to use both theories in moderation to ensure productivity and discipline in an organization. A variety of processes help us understand how leaders emerge. He wrote on leadership as well. Although Theory Y encompasses creativity and discussion, it does have limitations. A ) Basically, Theory X managers believe that people don't want to work, don't enjoy working, and are only motivated by money. Managers in newer organizations use this theory as now, people want more than monetary rewards and control. Managers who choose the Theory X approach have an authoritarian style of management. These credits give the individual a status that allows him to influence the direction that the group takes as it works to achieve its goals.27. Theory X. The modern manager knows how to distribute responsibility, instill trust in their employees, and motivate team members to deliver their best work and ideas. Plus, get practice tests, quizzes, and personalized coaching to help you Leadership is also about having a vision and communicating that vision to others in such a way that it provides meaning for the follower.32 Language, ritual, drama, myths, symbolic constructions, and stories are some of the tools leaders use to capture the attention of their followers to be to evoke emotion and to manage the meaning of the task (challenges) facing the group.33 These tools help the leader influence the attitudes, motivation, and behavior of their followers. 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. 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. 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