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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, McGregor's               The manager's ability to exercise power
 Authority   managers, in both cases, would seem to       and authority comes from the worker's
             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.
Theory x,y,z
Theory x,y,z
Theory x,y,z

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Theory x,y,z

  • 1.
  • 2.
  • 3.
  • 4.
  • 5.
  • 6.
  • 7.
  • 8. 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.
  • 9. Management Douglas McGregor William Ouchi Concept (Theory X & Y) (Theory Z) Power & As mentioned above, McGregor's The manager's ability to exercise power Authority managers, in both cases, would seem to and authority comes from the worker's 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.