The document discusses Douglas McGregor's Theory X and Theory Y management philosophies. Theory X assumes employees dislike work and need to be closely managed and controlled. Theory Y assumes employees can exercise self-direction and self-control towards organizational objectives. The document also discusses how Theory X leads to rigid hierarchies while Theory Y encourages participation, responsibility and trust in employees. Finally, it introduces Theory Z which emphasizes Japanese-style management focusing on job security, group decision-making and concern for employees' well-being.

1. Lecturer: Osei-Tutu Joseph
Contact: Phone: 0244 508205/ 0505 895953
e-mail: otkwam@gmail.com

2.  Douglas McGregor studied the attitudes people have
towards work and in his book, "The Human Side
of Enterprise" published in 1960 revealed certain
assumptions (beliefs) people (workers) have towards
work.
 He categorized these assumptions into two groups which
he called Theory X and Theory Y.
 These are regarded as two types of management
philosophies which guide their actions.
 Generally, Theory X assumes that people are lazy and will
avoid work whenever possible.
 Theory Y, on the other hand, assumes that people are
creative and enjoy work.

3.  Theory X = the classical school of management thought, as
suggested by adherents of Taylorism.
 Theory X basically holds the belief that people do not like
work and that some kind of direct pressure and control must
be exerted to get them to work effectively.
 These people require a rigidly managed environment, usually
requiring threats of disciplinary action as a primary source of
motivation.
 It is also held that employees will only respond to monetary
rewards as an incentive to perform above the level of that
which is expected.
 From a management point of view, autocratic (Theory X)
managers like to retain most of their authority.
 They make decisions on their own and inform the workers,
assuming that they will carry out the instructions.

4. 1. The average human being has an inherent dislike for work and will
avoid it if possible.
2. Because of this human characteristic of dislike for work, most
employees must be coerced, controlled, directed and threatened
with punishment to get them to put forth adequate effort towards
achieving organizational objectives.
3. Most people are not ambitious, have little desire for responsibility,
and prefer to be directed or led.
4. The average man is by nature indolent - he works as little as
possible.
5. Most people have little capacity for creativity in solving
organizational problems.
6. Motivation occurs only at the physiological and safety levels.
7. Most people are inherently self-centered, indifferent to
organizational needs.
8. Man is by nature resistant to change.

5.  Rigid patterns: Theory X results in rigid patterns of control
which may be applied in many ways. First, the theory advocates
close and careful supervision. Second, it relies on many
detailed directions such as demanding complete compliance
from the workers. Third, if employers feel the workers do not
perform their duties they threaten them with firing and
withdrawal of pay.
 Insistence on centralized power: All decisions are made and
channeled from the top. The workers do not have any say in
matters which affect them. Thus, it leads to authoritarian
leadership. In the school, it may show up in teacher dominated
classroom where students do not have any say. He might arbitrarily
decide to punish students by giving them undeserved low grades. '

6.  Another problem with Theory X is that it concerns itself
exclusively with high productivity of the organization at the
expense of the workers. They are exploited and their morale
becomes low.
 Administrators who use Theory X approach adopt wrong
attitudes towards the workers, considering them to be
unreliable, irresponsible and immature. The workers are
therefore not given any important responsibilities or involved in
decision-making.
 In sum, what is fundamental to Theory X is a philosophy of
direction, close supervision, external control and
authoritarian and directive style of leadership.

7.  Theory Y's assumptions represent a much more positive
assessment of human behaviour, and therefore related to
the human relations theory.
 Theory Y assumes that people are creative and eager to
work.
 Theory Y workers tend to desire more responsibility than
Theory X workers, and have strong desires to participate
in the decision making process.
 Theory Y workers are comfortable in a working
environment which allows creativity and the opportunity
to become personally involved in organisational planning

8. 1. The expenditure of physical and mental efforts in work is as
natural as play or rest.
2. External control and the threat of punishment are not the only
means of bringing about efforts towards organizational objectives
to which they are committed.
3. Commitment to objectives is a functions of the rewards associated
with their achievement.
4. The average human being learns, under proper conditions, not
only to accept, but also to seek responsibility.
5. The capacity to exercise a relatively high degree of imagination,
ingenuity and creativity in the solution of organizational problems
is widely and not narrowly distributed in the population.
6. Under the condition of modem industrial life, the intellectual
potentialities of the average human being are only partially realized
or utilized.

9. 1. Administrators who are Theory Y oriented seek
information from their workers and listen to them.
They will be concerned with the welfare of their
workers and willingly listen to their problems.
 In the classroom, the teacher who is Y oriented will
be student oriented and give them freedom to express
their ideas, and give them support in their class work.
1. The belief in Theory Y also leads to decentralization
of activities or power and delegation of authority.
 That is, responsibilities are shared among workers.
Besides, the workers are given authority to a certain
extent.

10.  For example, the workers are given a large measure of
self-control, self direction, freedom to act
(participate), responsibility and recognition for
achievement. By this the worker becomes highly
motivated.
1. Workers are regarded as responsible and mature and
therefore treated with due respect.
2. Finally a theory Y managerial behaviour would reflect
a less authoritarian or democratic leadership style.

11.  In sum, as pointed out by Szilagyi (1981), Theory Y
encourages:
 (1) delegating authority for many decisions to lower
level workers;
 (2) making an effort to make workers' job less routine
and boring;
 (3) increasing the level of responsibility in each
worker's job;
 (4) improving the free flow of information and
communication within the organization; and
 (5) recognizing that people are motivated by a
complex set of psychological needs, not just money.

12.  Theory Z is the term coined by William G. Ouchi to
characterize the Japanese approach to managing a
business.
 Like Theory Y, Theory Z emphasizes concern for people
and participative or consultative decision-making.
 Theory Z speaks of an organisational culture which
mirrors the Japanese culture in which workers are more
participative, and capable of performing many and varied
tasks.
 Theory Z emphasises things such as job rotation,
broadening of skills, generalisation versus specialisation,
and the need for continuous training of workers

13.  The most significant aspect of Theory Z, however, is
the importance it places on the traditional
mechanisms.
 Ouchi believes, the secret of Japanese success, is the
great concern Japan's managers show for the
well-being and development of employees.
 This philosophy based on several ideas that are
uniquely Japanese, emphasizes the workers as the key
to productivity and economic growth

14. 1. Life time employment
2. Collective decision-making
3. Collective responsibility
4. Slow evaluation and promotion
5. Implicit control mechanism
6. Non-specialized career paths
7. Holistic concern for employee as a person.