Theory X and Theory Y are
theories of human motivation created and developed by Douglas McGregor at
the MIT Sloan School of Management in the 1960s. He avoided descriptive
labels and simply called the Theory X and Theory Y. He did not imply that
workers would be one type or the other. Rather, he saw the two theories as two
extremes - with a whole spectrum of possible behaviors in between.
Theory X: ('Authoritarian
management' style)
Management that
believes
in theory-X assumptions, creates stick-and-carrot approach
based firms with restrictive discipline and pervasive controls.
Assumptions of Theory X:
- Most people dislike work and will avoid it to the extent possible, therefore
- They must be continually coerced, controlled, and threatened with punishment to get the work done, and that
- They have little or no ambition, prefer to avoid responsibility, and choose security above everything else.
The management implications
for Theory X workers are that, to achieve organizational objectives, rewards of
varying kinds are likely to be the most popular motivator.
Theory Y: ('Participative
management' style)
Theory-Y believers create trust based
firms with empowered employees.
Assumptions of Theory Y:
- Physical and mental effort are natural and most people (depending on the work environment) find work to be a source of satisfaction,
- They generally, on their own motivation, exercise self-control, self-direction, creativity, and ingenuity in pursuit of individual and collective (company) goals,
- They either seek responsibility or learn to accept it willingly, and that
- Their full potentials not tapped in most organizations. These assumptions serve as powerful behavioral models reflected in the way an organization is structured.
The challenge for management
with Theory Y workers is to create a working environment (or culture) where
workers can show and develop their creativity.
Comparing Theory X and
Theory Y
Motivation
Theory X assumes that people dislike work; they want to avoid it and do not
want to take responsibility. Theory Y assumes that people are self-motivated,
and thrive on responsibility.
Management Style and Control
In a Theory X organization, management is authoritarian, and centralized
control is retained, whilst in Theory Y, the management style is participative:
Management involves employees in decision making, but retains power to
implement decisions.
Work Organization
Theory X employees tend to have specialized and often repetitive work. In
Theory Y, the work tends to be organized around wider areas of skill or
knowledge; Employees are also encouraged to develop expertise and make
suggestions and improvements.
Rewards and Appraisals
Theory X organizations work on a ‘carrot and stick’ basis, and performance
appraisal is part of the overall mechanisms of control and remuneration. In
Theory Y organizations, appraisal is also regular and important, but is usually
a separate mechanism from organizational controls. Theory Y organizations also
give employees frequent opportunities for promotion.
Application
Although Theory X management style is widely accepted as inferior to others, it has its place in large scale production operation and unskilled production-line work. Many of the principles of Theory Y are widely adopted by types of organization that value and encourage participation. Theory Y-style management is suited to knowledge work and professional services. Professional service organizations naturally evolve Theory Y-type practices by the nature of their work; Even highly structure knowledge work, such as call center operations, can benefits from Theory Y principles to encourage knowledge sharing and continuous improvement
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