Management Douglas McGregor William Ouchi Concept (Theory X & Y) (Theory Z)Motivation Tends to categorise people as one type or Believes that people are innately self another: either being unwilling or motivated to not only do their work, but unmotivated to work, or being self also are loyal towards the company, and motivated towards work. Threats and want to make the company succeed. disciplinary action are thought to be used more effectively in this situation, although monetary rewards can also be a prime motivator to make Theory X workers produce more.Leadership Theory X leaders would be more Theory Z managers would have to have a authoritarian, while Theory Y leaders great deal of trust that their workers would be more participative. But in both could make sound decisions. Therefore, cases it seems that the managers would this type of leader is more likely to act as still retain a great deal of control. "coach", and let the workers make most of the decisions.
Management Douglas McGregor William Ouchi Concept (Theory X & Y) (Theory Z) Power & As mentioned above, McGregors The managers ability to exercise power Authority managers, in both cases, would seem to and authority comes from the workers keep most of the power and authority. In trusting management to take care of the case of Theory Y, the manager would them, and allow them to do their jobs. take suggestions from workers, but would The workers have a great deal of input keep the power to implement the and weight in the decision making decision. process. Conflict This type of manager might be more likely Conflict in the Theory Z arena would to exercise a great deal of "Power" based involve a great deal of discussion, conflict resolution style, especially with collaboration, and negotiation. The the Theory X workers. Theory Y workers workers would be the ones solving the might be given the opportunity to exert conflicts, while the managers would "Negotiating" strategies to solve their play more of a "third party arbitrator" own differences. role.