2. MCGREGORS THEORY X AND Y
Douglas Mcgregor wote the book
“The human side of enterprise” in 1960.
He examined individuals behaviour at work.
From this he formulated two models of
management based on hierarchy into lower-order
needs (Theory X) and higher-order needs (Theory
Y).
These theories are based on human behaviour in
management.
It concludes dual aspects of human being.
He suggested that management could use either
set of needs to motivate.
3. THEORY X
Theory X assumes that employees are naturally unmotivated
and dislike working, and this encourages an authoritarian style
of management. According to this view, management must
actively intervene to get things done.
According to Theory X, managers believe workers
Dislike work
Lack ambition
Are irresponsible
Are resistant to change
Prefer to be led
4. THEORY X
CONT..
Avoid responsibility and need to be directed.
Have to be controlled, forced, and threatened to
deliver what's needed.
Need to be supervised at every step, with controls
put in place.
Need to be enticed to produce results; otherwise
they have no ambition or motivation to work.
The people at work have no authority to suggest or
object anything.
Cant be trusted to make a decision.
Are only interested in MONEY.
Must be closely watched.
5. MANAGERS……
Assumes that people are lazy and don‟t like work and
are motivated by money.
Therefore people have to be forced to work.
Managers need to be controlling and motivate by threats
and fear.
The leadership style used will be autocratic.
Worker morale may low under this type of leader.
Eg. Hitler
6. THEORY Y
Theory Y shows a participation style of management that is decentralized. It assumes that employees are happy to work, are selfmotivated and creative, and enjoy working with greater
responsibility.
According to Theory Y, managers believe workers
Are willing to work
Are capable of self control
Accept responsibility
Are imaginative and creative
Self-directedEnjoy their work
Will work hard to get rewards
Want to see new things happening
Will work independently
Are motivated by things other than money
7. THEORY Y
Take responsibility and are motivated to fulfill the
goals they are given.
Consider work as a natural part of life and solve
work problems imaginatively. Assumes that people
seek fulfilment through work and are willing to work
hard.
In Y-Type organizations, people at lower levels of
the organization are involved in decision making
and have more responsibility.
8. MANAGERS……
Seek and accept responsibility and do not need
much direction.
The leadership style used is democratic or freerein.
The management motivate by encouragement and
inclusion.
Workers do not need to be controlled.
This management style tends to be more widely
appropriate.
9. COMPARING THEORY X AND THEORY Y
Theory X
Theory Y
Work avoiding
Work is natural
Need to control
Capable of self-direction
Avoid responsibility
Workers seek security
Seek responsibility
Can make good decisions
11. 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.
12. COMPARING THEORY X AND THEORY Y
Management Style and Control
In a Theory X organization, management is
authoritarian, and centralized control is retained.
Theory Y, the management style involves employees
in decision making, but retains power to implement
decisions.
13. COMPARING THEORY X AND THEORY Y
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.
14. COMPARING THEORY X AND THEORY Y
Rewards
Theory X organizations work on a „carrot and stick‟
basis, and performance is part of the overall
mechanisms of control.
In Theory Y organizations, appriciation is also regular
and important, but is usually a separate mechanism
from organizational controls. Theory Y organizations
also give employees frequent opportunities for
promotion.
15. COMPARING THEORY X AND THEORY Y
Application
Although Theory X management style is widely accepted as
poor 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 Ystyle 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
benefit from Theory Y principles to encourage knowledge
sharing and continuous improvement.
