Vassiliou, Marius, and David S. Alberts (2017). According to McGregor, Theory X managementassumes the following: Essentially, Theory X assumes that the primary source of employee motivation is monetary, with security as a strong second. Employees additionally tend to take full responsibility for their work and do not need close supervision to create a quality product. Some critics believe that current methods of measuring unemployment are inaccurate in terms of the impact of unemployment on people as these methods do not take into account the 1.5% of the available working population incarcerated in US prisons (who may or may not be working while they are incarcerated); those who have lost their jobs and have . Occupational inequality is the unequal treatment of people based on gender, sexuality, height, weight, accent, or race in the workplace. How do leaders influence and move their followers to action? They are not lazy at all. d. job satisfaction is primarily related to higher order needs. most workers seek out more resonsibilityTheory Y managers prefera. the average person dislikes work and will seek to avoid it when possible. Managers tend to micromanage and control employees performance and efforts. He referred to these opposing motivational methods as Theory X and Theory Y management. Leaders who rely solely on their legitimate power and authority seldom generate the influence necessary to help their organization and its members succeed. But how do leaders effectively exercise this influence? Here, leaders act as facilitators, process consultants, network builders, conflict managers, inspirationalists, coaches, teachers/mentors, and cheerleaders.40 Such is the role of Ralph Stayer, founder, owner, and CEO of Johnsonville Foods. The employee dislikes working, is not motivated enough and thus avoids working, whenever there is an opportunity. This generally involves a more 'hands-on' approach and inevitably micromanaging your team's workload to ensure it is done to . Research suggests that rationality is the most effective influence tactic in terms of its impact on follower commitment, motivation, performance, satisfaction, and group effectiveness.30. A manager who believes in Theory Y could have assumptions that: Too much freedom could lead to no accountability and people could lose direction and focus. Question: Theory X managers are likely to believe thata. The worker here is considered to be mature. Theory X and Y: An overview. consent of Rice University. Theory X managers have a pessimistic view of their employees and assume that they are naturally unmotivated and hate work. Power, then, essentially answers the how question: How do leaders influence their followers? A crisis could also demand more control and thus, this theory can come in handy. Theory X represents a negative view of human nature that assumes individuals generally dislike work, are irresponsible, and require close supervision to do their jobs. Theory X managers are likely to believe that: A.the average person dislikes work and will seek to avoid it when possible. On the other hand, more modern, network-centric, and decentralized concepts of C2, that rely on individual initiative and self-synchronization, tend to arise more from a "Theory Y" philosophy. He wrote on leadership as well. The Theory Y manager assumes that employees accept work as a normal part of their day right next to recreation and rest. Managers give employees some free space and flexibility to work. The benefits of Theory Z, Ouchi claimed, would bereduced employee turnover, increasedcommitment, improvedmorale and job satisfaction, and drastic increases in productivity. Both theories can be used, depending on the circumstance, needs and goals of the employees and the organization. It refers to the management style that believes in authoritarian and controlling behavior. Both theories are mostly used as a mixture in organizations and workplaces. It has been a fact that sustainability and employee turnover in corporations rely heavily on the different styles of management practiced at given companies nowadays. While money may not be the most effective way to self-fulfillment, it may be the only way available. This could additionally lead to a bad reputation. This managerial style is more effective when used in a workforce that is not essentially motivated to perform. Slow promotions, group decision-making, and life-time employment may not be a good fit with companies operating in cultural, social, and economic environments where those work practicesare not the norm. Many leaders emerge out of the needs of the situation. Theory Y, on the other hand, presents a positive view of human . Theory Y managers gravitate towards relating to the worker on a more personal level, as opposed to a more conductive and teaching-based relationship. A formal leader is that individual who is recognized by those outside the group as the official leader of the group. This allows the individual to receive either a direct reward or a reprimand, depending on the outcome's positive or negative nature. You lead people.23 Informal leaders often have considerable leverage over their colleagues. Managers following Theory X can be pessimistic and orthodox in their approach and be prone to assume that employees are not interested in their work and need to be pushed. As the challenges facing a group change, so too may the flow of power and leadership. He explained this concept in his book "The Human side of Enterprise". They're full of potential, and it's through their own. [14] Mission Command, for example, is a command philosophy to which many modern military establishments aspire, and which involves individual judgment and action within the overall framework of the commander's intent. Theory Y is used by managers who believe employees are responsible, committed and self-motivated. Theory X managers are likely to believe that employees are lazy, fear-motivated, and in need of constant direction. If a company wants to realize thebenefits described above, itneed to have the following: Theory Z is not the last word on management, however, as it does have its limitations. The soft approach, however, is to be permissive and seek harmony in the hopes that, in return, employees will cooperate when asked. It refers to the management style that follows a more participative, interactive and optimistic approach. Humanistic psychologist Abraham Maslow, upon whose work McGregor drew for Theories X and Y, She also holds three degrees including communications, business, educational leadership/technology. As a consequence, they exert a highly controlling leadership style. The Theory X manager assumes employees hate the idea of having to go to work and do so only to earn a paycheck and the security it offers. They also dislike change and tend to resist it at all costs. Several assumptions form the basis for this theory. Consider these assumptions from the different managerial styles: Most people find happiness in hard work under the right conditions. copyright 2003-2023 Study.com. The power base in many organizations shifted to marketing as competition became a game of advertising aimed at differentiating products in the consumers mind. This management style assumes that the typical worker has little ambition, avoids responsibility, and is individual-goal oriented. Creative Commons Attribution License According to the Theory of X and Y, there are 2 categories of managers . When I say X, I don't mean the type that marks a treasure - in fact, quite the opposite is true. A Theory X management style may be well-suited for this type of structured, process-driven workplace. In many instances, people are put into positions of leadership by forces outside the group. Practically all managers act as formal leaders as part of their assigned role. Managers in newer organizations use this theory as now, people want more than monetary rewards and control. Want to cite, share, or modify this book? job satisfaction is primarily related to higher-order needs. The use of rationality, expert power, and/or moralistic appeal generally elicits commitment and the internalization of the leaders goals.29, Leaders who use referent and expert power commonly experience a favorable response in terms of follower satisfaction and performance. are licensed under a, Major Characteristics of the Manager's Job, How the Brain Processes Information to Make Decisions: Reflective and Reactive Systems, Administrative and Bureaucratic Management, External and Internal Organizational Environments and Corporate Culture, The Internal Organization and External Environments, Organizing for Change in the 21st Century, Ethics, Corporate Responsibility, and Sustainability, Dimensions of Ethics: The Individual Level, Ethical Principles and Responsible Decision-Making, Leadership: Ethics at the Organizational Level, Ethics, Corporate Culture, and Compliance, Emerging Trends in Ethics, CSR, and Compliance, Cultural Stereotyping and Social Institutions, Characteristics of Successful Entrepreneurs, Trends in Entrepreneurship and Small-Business Ownership, Strategic Analysis: Understanding a Firms Competitive Environment, Gaining Advantages by Understanding the Competitive Environment, A Firm's External Macro Environment: PESTEL, A Firm's Micro Environment: Porter's Five Forces, Competition, Strategy, and Competitive Advantage, The Strategic Management Process: Achieving and Sustaining Competitive Advantage, The Role of Strategic Analysis in Formulating a Strategy, Strategic Objectives and Levels of Strategy, Planning Firm Actions to Implement Strategies, Measuring and Evaluating Strategic Performance, An Introduction to Human Resource Management, Influencing Employee Performance and Motivation, Talent Development and Succession Planning, Benefits and Challenges of Workplace Diversity, Situational (Contingency) Approaches to Leadership, Substitutes for and Neutralizers of Leadership, Transformational, Visionary, and Charismatic Leadership, Opportunities and Challenges to Team Building, Factors Affecting Communications and the Roles of Managers, Managerial Communication and Corporate Reputation, The Major Channels of Management Communication Are Talking, Listening, Reading, and Writing, Formal Organizational Planning in Practice, Management by Objectives: A Planning and Control Technique, The Control- and Involvement-Oriented Approaches to Planning and Controlling, MTIIts Importance Now and In the Future, External Sources of Technology and Innovation, Internal Sources of Technology and Innovation, Management Entrepreneurship Skills for Technology and Innovation, Managing Now for Future Technology and Innovation, Tannenbaum and Schmidts Leadership Continuum, Leadership Behavior and the Uses of Power. Theory X [8] This approach is derived from Fred Fiedler's research over various leadership styles known as the contingency theory. Instead, McGregor feels that an approach located in the middle would be the most effective implementation of Theory X.[7]. It includes a trusting, collaborative and positive relationship between the manager and employees. It is important to recognize that the traits possessed by certain individuals contribute significantly to their emergence as leaders. People are motivated when they find value in their contributions and see an opportunity to realize their own potential. Read them well and, normally, they'll feel confident taking direction under the parameters of X and Y. They'll understand your expectations and feel motivated - those two things promote happiness at work and contribute to wellbeing. most employees know more about their job than the bossd. The hard approach to motivation relies on coercion, implicit threats, micromanagement, and tight controls essentially an environment of command and control. This theory supports threatening supervisory power. Most people have little aptitude for creativity in solving organizational problems. Empirical evidence concerning the validity of Theory X and Theory Y, however, was mixed. Theory X and Theory Y were developed in the 1960's and describe two different, almost opposite, attitudes to motivation in the workplace. B.most employees know more about their job than the boss. These managers tend to be more present in entry-level jobs where productivity and process are favored over independence or innovation, but they may show up at any company level and in any industry. d. job satisfaction is primarily related to higher-order needs. A lot of control and supervision could lead to resentment and will not help in facilitating innovative or creative ideas. Douglas McGregor introduced Theory X and Theory Y to explain different styles of management. He defines himself as his companys philosopher. The worker is assumed to be immature and viewed as being very gullible. Most people are not ambitious, have little desire for responsibility, and prefer to be directed. Are inherently lazy, lack ambition and prefer to be directed on what to do rather than assume responsibility on their own. A ) flashcard sets. succeed. The latter theory proposes that employees and managers can achieve a collaborative and trust-based relationship. Plus, get practice tests, quizzes, and personalized coaching to help you You might, for instance, have a tendency to micromanage or, conversely, you may prefer to take a more hands-off approach. Intervention of the management is considered to be important to deal with passive, resistant workers. People will be self-directed and creative to meet their work and organizational objectives if they are committed to them. Theory Y managers favor a more collaborative approach, centering their leadership on trust, valuing creative problem solving, and managing by way of providing their employees with tools, opportunities, and visibility to do their jobs well. The manager would use promotions, incentives, the threat of firing or cutting off pay to motivate employees to put effort or work. Work is changing. Theory X managers tend to take a pessimistic view of their people, and assume that they are naturally unmotivated and dislike work. The answer often is that a leaders social influence is the source of his power. http://www.envisionsoftware.com/articles/Theory_X.html, https://pixabay.com/en/idea-businessman-man-outline-suit-1460935/, http://vle.du.ac.in/mod/book/view.php?id=8344&chapterid=10377, CC BY-NC-SA: Attribution-NonCommercial-ShareAlike, https://commons.wikimedia.org/wiki/File:Toyota_Plant_Ohira_Sendai.jpg. 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