theories xyz - edit

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Introductıon

Theory X and Theory Y are theories of human

motivation created and developed by Douglas

McGregor at the MIT Sloan School of Management in

the 1960.

They describe two contrasting models of workforce

motivation.

Theory X and Theory Y have to do with the

perceptions managers hold on their employees, not the

way they generally behave. It is attitude not attributes.



His work is based upon Maslow's Hierarchy of Needs, where he grouped the hierarchy into lower-order needs

(Theory X) and higher-order needs (Theory Y).

He suggested that management could use either set of

needs to motivate employees, but better results would be

gained by the use of Theory Y, rather than Theory X.

These two views theorized how people view human

behavior at work and organizational life.



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 theother hand, if you assume that employees take pride in

doing a good job, you will tend to adopt a more

participation style.

Theory X assumes that people are lazy and will avoid work whenever possible

Theory Y in other hand , assumes that people are creative and

enjoy work



Theory X



Theory X

- Theory X assumes that employees are naturally unmotivated and dislike working, and this encourages an authoritarian style of management. Accordingto this view, management must actively intervene to get things done. This styleof management assumes that workers:

Dislike working.

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 ormotivation to work.



Theory X Continued

X-Type organizations tend to be top heavy, with managers

and supervisors required at every step to control workers.

There is little delegation of authority and control remains

centralized.

McGregor recognized that X-Type workers are in fact

usually the minority, and yet in large scale productionenvironment, X Theory management may be required and

can be unavoidable.



Theory Y



Theory Y

Theory Y shows a participation style of management that is de-centralized.

It assumes that employees are happy to work, are self-motivatedand creative, and enjoy working with greater responsibility.

Take responsibility and are motivated to fulfill the goals they aregiven.

Seek and accept responsibility and do not need much direction.

Consider work as a natural part of life and solve work problemsimaginatively.



Theory Y Continued

This management style tends to be more widely appropriate. In Y-Type organizations, people at lower levels of the organizationare involved in decision making and have more responsibility.

Theory X and Theory Y relate to Maslow's hierarchy of needs in

how human behavior and motivation are main priorities in the workplace in order to maximize output. In relation to Theory Y,the organization is trying to create the most symbioticrelationship between the managers and workers, which relates toMaslow's needs for self-actualization and Esteem.

For self-actualization issues relate to Esteem when the manageris trying to promote each team member's self-esteem, confidence,achievement, happiness, respect of others, and respect by others.



Management Concept Using

Theory X and Theory Y

Management theory is a useful and simple reminder

of the natural rules for managing people and he

maintained that there are two fundamental

approaches to managing people

Theory X manager is an authoritarian manager and

generally gets poor results

Theory Y manager is a participativemanager whichproduces better performance and results, and allows

people to grow



Comparison of ManagementTheory X

o Motivational Style

Threats and diciplinary action are used

more effectively in this situation, also

monetory gain

o Leadership Authoritarian

o Power & Authority

Arrogant, one way communicator

o Conflict

Intolerant

o Performance Appraisal

Appraisals occur on a regular basis

Theory Y

o Motivation Style

Rewarding

o Leadership

Participative

o Power& Authority

The manager would take suggestions from

workers, but would keep the power to

implement the decision

o Conflict

Workers might be given the opportunity to

exert “negotiating”strategies to solves

their own differences

Permormance Appraisals

Promotions also occur on a regular basis



William G. Ouchi (born 1943) is an Americanprofessor and author in the field of businessmanagement.Ouchi first came to prominence for hisstudies of the differences between Japanese and

American companies and management styles. Hisfirst book in 1981 summarized his observations.Theory Z: How American Management Can Meet

the Japanese Challenge and was a New York Timesbest-seller for over five months. It currently ranks asthe seventh most widely held book of the 12 milliontitles held in 4000 U.S. libraries. His second book,The M Form Society: How American Teamwork Can

Recapture the Competitive Edge, examined varioustechniques implementing that approach.

THEORY Z



Theory Z essentially advocates a combination of allthat's best about theory Y and modern Japanesemanagement, which places a large amount of freedomand trust with workers, and assumes that workers have

a strong loyalty and interest in team-working and theorganisation. Theory Z also places more reliance onthe attitude and responsibilities of the workers, whereas Mcgregor's XY theory is mainly focused on

management and motivation from the manager's andorganisation's perspective.



Japanese Management Style

(Theory Z)

Mc Gregor identified a negative set of assumptions about humannature, which he called Theory X. He asserted that theseassumptions limited the potential for growth of many employees

Mc Gregor presented an alternative set of assumptions that he

called Theory Y and were more positive about human nature as itrelates to employees. In Mc Gregor view, managers who adoptedTheory Y beliefs would exhibit different, more humanistic, andultimately more effectives management styles and Theory Y becamea well known prescriptions for improving management practises

Concerns about the competitiveness os U.S.companies led some to

examine Japanese Management Practises for clues to the successenjoyed by many of their industries. This led to many articles andbooks purpoting to explain the success of Japanese companies.



Key Features of Theory ZTheory Z is humanistic approach to management

approach by Willian Ouchi

Offer lifetime employmentInsist on mandatory retirement of core workers at

age 55

Employ a large number of temporary employees

mostly women

There is a high degree of mutual trust and loyalty

between management and employees



Key Features of Theory Z Decision making is shared al all levels

Performance appraisal is long term

There is strong sense of collective responsibility for thesucces of the organization

And cooperation effort rather than individual

achievement is encouraged



Although Ouchi recognizes that many of features of

Japanese management could not be translated into

Western industrial society, he believes that certain

features could be applied in a Western Context. Themove from the present hierarchical types of organization

to a Theory Z type organization is a process which, says

Ouchi :

“ Has the objective of developing the ability of the

organization to coordinate people, not technology to

achieve productivity”



o In his view, this requires a new philosophy of managing

people based on a combination of the following features

Japanese management

Lifelong employment prospects

Shared forms of decision making

Relationship between boss and subordinate based on

mutual respect



According to Ouchi the introduction of Theory Z approaches

into Western firms requires the following strategy :

Adoption of a “Top Down” approach, based on definition ofthe new philosophy agreed and supported by the

organization’s top management

Implementation of the new approach should be carriedthrough on the basis of consultation and communication with

the workforce and with full training support to develop relevant

skills for managers, supervisors and their teams.



Comparing Theory X and Theory

YMotivation

Theory X assumes that people dislike work; they want toavoid it and do not want to take responsibility. Theory Y

assumes that people are self-motivated, and thrive onresponsibility.

Management Style and Control

In a Theory X organization, management is authoritarian,and centralized control is retained, while in Theory Y, themanagement style involves employees in decision making,but retains power to implement decisions.



Work Organization Theory X employees tend to have specialized and often repetitive work. In Theory Y, the work tends to be organized around widerareas of skill or knowledge; Employees are also encouraged todevelop expertise and make suggestions and improvements.

Rewards Theory X organizations work on a ‘carrot and stick ’ basis, andperformance is part of the overall mechanisms of control. In

Theory Y organizations, appreciation is also regular and

important, but is usually a separate mechanism fromorganizational controls. Theory Y organizations also giveemployees frequent opportunities for promotion. Acceptingcreative and innovative ideas provided by employees.



Application

Although Theory X management style is widelyaccepted as poor to others, but somehow, it has itsplace of beneficial in large scale production operationand unskilled production-line work.

Theory Y-style management is suited to knowledge work and professional services. Professional serviceorganizations naturally evolve Theory Y-type practices

by the nature of their work; Even highly structureknowledge work, such as call center operations, canbenefit from Theory Y principles to encourageknowledge sharing and continuous improvement.



Comparison & Contrast of Management TheoristsManagemen

tConcept

Douglas McGregor(Theory X & Y)

William Ouchi(Theory Z)

Motivation Tends to categorise people as one type oranother: either being unwilling orunmotivated to work, or being selfmotivated towards work. Threats anddisciplinary action are thought to beused more effectively in this situation,

although monetary rewards can also bea prime motivator to make Theory X workers produce more.

Believes that people are innately selfmotivated to not only do their work,but also are loyal towards thecompany, and want to make thecompany succeed.

Leadership Theory X leaders would be more

authoritarian, while Theory Y leaders would be more participative. But in bothcases it seems that the managers wouldstill retain a great deal of control.

Theory Z managers would have to

have a great deal of trust that their workers could make sound decisions.Therefore, this type of leader is morelikely to act as "coach", and let the workers make most of the decisions.



Comparison & Contrast of Management TheoristsManagemen

tConcept

Douglas McGregor(Theory X & Y)

William Ouchi(Theory Z)

Power & Authority

As mentioned above, McGregor'smanagers, in both cases, would seem tokeep most of the power and authority.In the case of Theory Y, the manager would take suggestions from workers,but would keep the power to

implement the decision.

The manager's ability to exercisepower and authority comes from the worker's trusting management to takecare of them, and allow them to dotheir jobs. The workers have a greatdeal of input and weight in the

decision making process.

Conflict This type of manager might be more

likely to exercise a great deal of "Power"based conflict resolution style,especially with the Theory X workers.Theory Y workers might be given theopportunity to exert "Negotiating"strategies to solve their own differences.

Conflict in the Theory Z arena would

involve a great deal of discussion,collaboration, and negotiation. The workers would be the ones solvingthe conflicts, while the managers would play more of a "third partyarbitrator" role.



Conclusion

McGregor’s Theory X

(Authoritarian Management Style)

– produces strict and controlling supervision

McGregor’s Theory Y(Participative Management Style)

– associated and participative supervision

William Ouchi’s Theory Z

(Japanese Management Style)

– managers must be more supportive and trusting of

their employees, in order to receive the benefit of increased

participation in the decisions of the company.

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