Theory

2. MCGREGORS THEORY X AND Y
 Douglas Mcgregor wrote 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. UNDERSTANDING THE THEORIES
 Our management style is strongly influenced by our
beliefs and assumptions about what motivates
members of your team: If you believe that team
members dislike work, you will have an
authoritarian style of management; On the other
hand, if you assume that employees take pride in
doing a good job, you will tend to adopt a more
participation style.

4. 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.
 It summaries that workers need to be constantly
watched and instructed what to do.

6. CHARACTERSTICS
 intolerant
 distant and detached
 aloof and arrogant
 short temper
 issues instructions,
directions, edicts
 issues threats to make
people follow instructions
 demands, never asks
 does not participate
 does not team-build
 unconcerned about staff
welfare, or morale
 proud, sometimes to the
point of self-destruction
 one-way communicator
 poor listener

7. THEORY Y
 Theory Y shows a participation style of
management that is decentralized. It assumes that
employees are happy to work, selfmotivated,
creative and enjoy working with greater
responsibility.
 It emphasizes that staff are self-disciplined and
would like to do the job themselves

9. CHARACERSTICS
 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.

10. OTHER CHARACTERSTICS
 self-motivated
 responsible
 always participate
 gives rewards and feedback
 promotion
 power to implement decisions
 active
 good listener
 happy
 concerned about staff welfare

11. COMPARISON

12. APPLICATION
 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.
 Theory Y-style management is suited to knowledge
work and professional services; even highly
structure knowledge work, such as call center
operations, can benefits from. Theory Y principles
to encourage knowledge sharing and continuous
improvement.

13. APPLICATION OF HIERARCHY OF NEEDS TO
MANAGEMENT AND WORKPLACE
Theory X
(ineffective management)
Once a need is met, it no
longer motivates behavior:
therefore only unfulfilled
needs are motivational.
Theory Y
(effective management)
Motivational emphasis
shifts to social, ego and
self- actualization since
most employees have
physical and safety needs
met.

14. CONCLUSION
Though these theories are very basic in nature, they
provide a platform for future generations of management
theorists and practitioners to understand the changing
dynamics of human behavior. McGregor’s X-Y Theories
remain guiding principles to the management to evolve
processes which help in organizational development.