Theory X & Y

JAYANT SHARMA

Key Concept• Management is responsible for organizing the elements of productive enterprise –a) Moneyb) Materialc) Equipment'sd) People on interest of economic ends• With respect to people there is a process of directing their efforts , motivating them ,

controlling their actions, modifying their behaviour to fit the needs of the organization.• Without active intervention by men people would be passive even resistant to

organizational needs. They therefore, must be persuaded, rewarded , punished , controlled , their activities must be directed.

Key Concept• The average men in nature is indolent , he works as little as

possible.• he lacks ambition, dislikes responsibility , prefers to be led.• He is inherently self cantered indifferent to organizations need.• He is by nature resistant to change.• he is gullible , not very bright• Conventional organization structures and managerial policies &

practices reflect these assumptions.

Key Concept

• In accompanying the task management has conceived of range of possibilities :-

A. At one extreme management can be hard or extreme , this method of directing behaviour involves –

a. coercion and threatb. close supervisionc. Right control over behaviour

Key Concept

A. At the other extreme management can be soft or week, this method of directing behaviour involves –

a. being permissiveb. satisfying people’s demandc. achieving harmonyThen they will be tractable and accept direction .

Theory• Theory X and Theory Y was an idea devised by Douglas McGregor in his 1960 book

“The Human Side of Enterprise” .

• It encapsulated a fundamental distinction between management styles.1. Theory X - authoritarian style

2. Theory Y - participative style

• McGregor looked at the way in which employers and employees traditionally viewed work – The employer paid the money and gave instructions, and the worker did the job without asking questions

Assumptions

Theory X Theory YDon’t like working Enjoy their workDo as little as they can get away with Will work hard to get rewardsDon’t like things to change Want to see new things happeningNeed to be told what to do Will work independentlyCant be trusted to make a decision Can be trusted to make decisions Are only interested in MONEY Are motivated by things other than

moneyMust be closely watchedCant be trusted or relied upon Can work unsupervised

Relativeness of the theory with different theories

• McGregor urged companies to adopt Theory Y. Only it, he believed, could motivate human beings to the highest levels of achievement. Theory X merely satisfied their lower-level physical needs and could not hope to be as productive. “Man is a wanting animal,” wrote McGregor, “as soon as one of his needs is satisfied another appears in its place.”

• There are parallels with Abraham Maslow's hierarchy of needs, and Maslow was indeed greatly influenced by McGregor. So much so that he tried to introduce Theory Y into a Californian electronics business, but found that the idea in its extreme form did not work well. All individuals, he concluded, however independent and mature, need some form of structure around them and some direction from others. Maslow also criticised Theory Y for its “inhumanity” to the weak, and to those not capable of a high level of self-motivation.

• People don't hate work. It's as natural as rest or play. They don't have to be forced or threatened. If they commit themselves to mutual objectives, they'll drive themselves more effectively than you can drive them. But they'll commit themselves only to the extent they can see ways of satisfying their ego and development needs.

Application of this theory in real life circumstances

• Decentralisation & Delegation• Job Enlargement• performance appraisal• Participative and consultative management