A manager's behavior and expectations are as contagious as the plague. According to McGregor, there are two opposing approaches to implementing Theory X: the hard approach and the soft approach. In the process of building their power base, effective leaders have discovered that the use of coercive power tends to dilute the effectiveness of other powers, while the development and use of referent power tends to magnify the effectiveness of other forms of power. With a workplace centered on trust, its important not only to instill trust in your teammatesbut also in the right technology to get the job done. ]; the use of rewards often leads people to think in terms of How much am I getting? or How much should I give? or Am I breaking even? The use of referent power produces identification with the leader and his cause. 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. But there are times when management is less about leadership and more about the staunch enforcement of rules and micromanagement of production. Theory X managers believe all actions should be traceable to the individual responsible. Also, participative decision-making may not always be feasible or successful due to the nature of the work or the willingness of the workers. Based on these factors, it is easy to see how Theory X differs from Theory Y and easy to imagine their potential outcomes in the workplace. But . Theory X and Theory Y thinking and leadership are not strictly an American phenomenon. As the challenges facing a group change, so too may the flow of power and leadership. Try refreshing the page, or contact customer support. The latter theory proposes that employees and managers can achieve a collaborative and trust-based relationship. At Quad/Graphics, president Harry V. Quadracci is a permissive democrat because he encourages all Quad employees to play a major role in decision-making and execution as they manage their teams as independent profit centers. Douglas McGregor introduced Theory X and Theory Y to explain different styles of management. Participative Leadership Theory & Examples | What is Participative Leadership? Goal-Setting Theory in Management: Definition & Examples, Five Dimensions of Trustworthy Leadership, Herzberg Two-Factor Theory | Hygiene Factors & Motivation. An optimal managerial style would help cultivate worker creativity, insight, meaning and moral excellence. Each assumes that the managers role is to organize resources, including people, to best benefit the company. Both sides seek to satisfy some personal pleasures and needs. Its assumptions about the value of individual initiative make it more a Theory-Y than a Theory X philosophy.[15]. Theory Y is used by managers who believe employees are responsible, committed and self-motivated. the average person dislikes work and will seek to avoid it when possible. Coercive power can result in favorable performance, yet follower and resistance dissatisfaction are not uncommon. This judgement could say a lot about your style of management. Where a typical Theory X manager might require strict work hours, a Theory Y manager might offer employees a firm deadline, trusting them with the choice of when and how they will meet a productivity deadline. [12] On the contrary, managers who choose the Theory Y approach have a hands-off style of management. Theory X vs Theory Y Managers| Douglas McGregor's Management Theory, Douglas McGregor's Motivation & Management Theories, Adair's Action-Centered Leadership Theory. It can be difficult for organizations and employees to make life-time employment commitments. The Theory Y manager assumes that employees accept work as a normal part of their day right next to recreation and rest. 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. His main ideas broke down into two options, Theory X and Theory Y. most employees know more about their job than the bossd. Grace Hopper, retired U.S. Navy admiral, draws a distinction between leading and managing: You dont manage people, you manage things. Managers may prefer one theory over the other; it depends on individual trait differences. Managers in newer organizations use this theory as now, people want more than monetary rewards and control. If you believe that your team members dislike work and have little natural motivation to do a good job, then according to McGregor, you likely use an authoritarian style of management. Individuals attracted to high-involvement organizations, however, want to make their own decisions, expect their leaders to allow them to do so, and are willing to accept and act on this responsibility. With this intuitive, cloud-based solution, everyone can work visually and collaborate in real time while building flowcharts, mockups, UML diagrams, and more. Power, then, essentially answers the how question: How do leaders influence their followers? Theory Z stresses the need to helpworkers become generalists, rather than specialists. Theory Y managers believe employees would be motivated to meet goals in the absence of organizational controls, given favorable conditions. People are self-motivated and embrace responsibility. Known as an influential figure in management theory, organizational communication, and organizational studies, Douglas McGregor was a professor at Massachusetts Institute of Technology, where he was a vocal advocate of the human relations approach. McGregor and Maslow respected each other and used each others theories in their work. Theory of X and Y is a theory on human work and motivation developed by Douglas McGregor. How do leaders influence and move their followers to action? The control and coercion involved in this style of management could lead to employee frustration, de-motivate employees and damage relationships within the organization. Creativity and problem-solving thrive when employees are trusted. Theory Y managers gravitate towards relating to the worker on a more personal level, as opposed to a more conductive and teaching-based relationship. 277. People will be self-directed and creative to meet their work and organizational objectives if they are committed to them. Theory Y is also known as contingency theory because it allows for flexibility in the work environment. In the 1950s, Tannenbaum and Schmidt created a continuum (see Exhibit 13.6) along which leadership styles range from authoritarian to extremely high levels of worker freedom.34 Subsequent to Tannenbaum and Schmidts work, researchers adapted the continuum by categorizing leader power styles as autocratic (boss-centered), participative (workers are consulted and involved), or free-rein (members are assigned the work and decide on their own how to do it; the leader relinquishes the active assumption of the role of leadership).35. They can have creativity, innovation and potential skills that they can use to solve problems or to perform effectively. Overall leader effectiveness will be higher when people follow because they want to follow. Under Theory Z management, not only do workers have a sense of cohesion with their fellow workers, they also develop a sense of order, discipline, and a moral obligation to work hard. Most managers will likely use a mixture of Theory X and Theory Y. The hard approach to motivation relies on coercion, implicit threats, micromanagement, and tight controls essentially an environment of command and control. The employees could find their work fulfilling as well as challenging. Work is changing. most workers seek out more resonsibilityTheory Y managers prefera. flashcard sets. Lucidchart makes it easy to share processes, information, and ideas with a team from a single centralized location. It is to McGregors thorough research and curiosity in behavior and incentive that we owe our current understanding of Theory X and Theory Y. As we have noted, the terms leader and manager are not synonymous. As a Theory Y manager, Yoko believes her employees: Yoko assumes that her employees are full of potential and that it is her role as a manager to help develop that potential so that the employee can work towards a common organizational goal. Yoko is a Theory Y manager, and when I say Y here, think 'why not.' The hard approach results in hostility, purposely low output, and extreme union demands. Different types of power elicit different forms of compliance: Leaders who rely on coercive power often alienate followers who resist their influence attempts. Some people prefer micromanaging and leading, and some people prefer giving space. He mentioned Theory X and Theory Y in his book, The Human Side of Enterprise, published in 1960. This is a participative management style that gives rise to a more collaborative work environment, whereas theory X leads to micromanaging. employees are motivated mainly by the chance for advancement and recognition. 1999-2023, Rice University. Previous post: Improving Problem Solving Skills. People come to leadership positions through two dynamics. This style is appropriate when followers have valuable opinions and ideas, but one person needs to coordinate the execution of the ideas. Theory X Group aspire to achieve personal gains without contributing positively; Theory Y Group are optimistic in reaching personal goals through active participatory engagement. O most employees know more about their job than the boss. Since the employee is not responsible to work willingly, he or she must be motivated with the rewards and incentives, prompted, punished, coerced or forced into working. Question: Theory X managers are likely to believe thata. Theory X starts from the assumption that people are naturally lazy, want to avoid work as much as possible, do not wish to take responsibility, have no . X managers is an impediment to employee morale and productivity X managers believe it is his/her job to structure the work and energize, even coerce (threaten with punishment) the. Under Theory X, one can take a hard or soft approach to getting results. One view holds that in traditional organizations members expect to be told what to do and are willing to follow highly structured directions. Thus, Salancik and Pfeffer reason that power and thus leadership flow to those individuals who have the ability to help an organization or group [overcome its critical contingencies]. B employees are primarily motivated by opportunities for advancement and recognition. Lack of ambition and laziness is more common than ambition and creativity. Vassiliou, Marius, David S. Alberts, and Jonathan R. Agre (2015). It refers to the management style that follows a more participative, interactive and optimistic approach. In actual practice, most managers today practice a combination of Theory X and Theory Y styles of management. Several assumptions form the basis for this theory. It helped me pass my exam and the test questions are very similar to the practice quizzes on Study.com. Implementing a Theory Y-focused leadership approach requires modern tools that can complement the collaborative workplace. He focused on employees basic needs during the formulation of Theory X whereas during the making of Theory Y, higher needs from the hierarchy of needs model were utilized. Jack Welch was the formal leader of General Electric, and Leonard Bernstein was the formal leader of the symphony. In the 1960s, social psychologist Douglas McGregor developed Theory X and Theory Y to explain how managers' beliefs about what motivates their employees can influence their management style. When researchers study trends in occupational inequality they usually focus on distribution or allocation pattern of groups across occupations, for example, the distribution of men compared to women in a certain occupation. This theory supports threatening supervisory power. He wrote on leadership as well. Where a Theory X manager might threaten loss of employment in order to get employees to work on a Saturday, a Theory Y manager might appoint a temporary leadership title to anyone who chooses to show up to work on a Saturday. 22nd International Command and Control Research and technology Symposium (ICCRTS). She also holds three degrees including communications, business, educational leadership/technology. 17 chapters | In Theory X, Douglas McGregor summarizes the traditional view of management in a number of characteristic assumptions in which autocratic leadership style, close supervision and the hierarchical principle are the key elements. 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. In this capacity, leadership can be seen as a differentiated role and the nucleus of group activity. What might be less immediately understandable are the differing effects of Theory X and Y on resulting behavior and productivity. This approach is usually taken by managers working in older companies and firms. Accept work as a normal part of their day, and it's right next to recreation and rest. If you continue to use this site we will assume that you are happy with it. While money may not be the most effective way to self-fulfillment, it may be the only way available. These credits give the individual a status that allows him to influence the direction that the group takes as it works to achieve its goals.27. O most employees know more about their job than the boss. Because managers and supervisors are in almost complete control of the work, this produces a more systematic and uniform product or work flow. 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. They are inherently lazy, lack ambition and prefer to be directed on what to do rather than assume responsibility on their own. [4] Assumptions of Theory Y, in relation to Maslow's hierarchy put an emphasis on employee higher level needs, such as esteem needs and self-actualization. Theory Zalso makes assumptions about company culture. Use this quiz to check your understanding and decide whether to (1) study the previous section further or (2) move on to the next section. [11], For McGregor, Theory X and Theory Y are not opposite ends of the same continuum, but rather two different continua in themselves. Theory X managers tend to take a pessimistic view of their people, and assume that they are naturally unmotivated and dislike work. Situational Leadership Theory & Styles | What is Situational Leadership? Besides conducting the orchestra, he created a vision for the symphony. Its like a teacher waved a magic wand and did the work for me. His ideas suggest that there are two fundamental approaches to managing people: Many managers tend toward Theory X and generally get poor results. When this persons role is sanctioned by the formal organization, these team leaders become formal leaders. QUESTION 17 The Theory X managers probably believe that: a. the average employee dislikes the job and will try to avoid it whenever possible. This could lead to more turnover and absenteeism. Theory X managers believe employees must be controlled to meet organizational goals. "Mission Command and Agile C2." Finally, the permissive democrat shares power with group members, soliciting involvement in both decision-making and execution. The secret to their success was not what they were producing but how they were managing their peopleJapanese employees were engaged, empowered, and highly productive. Reason In theory X, the manager believes that employees are lazy, and they avoid doing work properly. As a result, they must be closely controlled and often coerced to achieve organizational objectives. Theory X managers are likely to believe that employees are lazy, fear-motivated, and in need of constant direction. Most people avoid responsibility and need constant direction. If you agree with Joseph, you will likely agree with Theory X, which refers to a more authoritarian style of managing. Most people can handle responsibility because creativity and ingenuity are common in the population. They lack ambition and physiological and safety factors motivate them. And the most lauded skills, especially in leadership, lie in the ability to connect seemingly disparate ideas and communicate those ideas clearly. Good leaders, whether formal or informal, develop many sources of power. In 1960, Douglas McGregor published two theories (Theory X & Theory Y) of employee motivation based on the assumptions that managers make about employees. Theory X managers tend to take a pessimistic view of their people, and assume that they are naturally unmotivated and dislike work. Most employees know more about their job than the boss. The employee is not responsible and hence must be supervised or directed towards the goal of the organization. People must be constantly directed, prompted, rewarded, or punished in order to complete their work. People will be committed to their quality and productivity objectives if rewards are in place that address higher needs such as self-fulfillment. Modern work gets done through the connection of ideas: The better your ideas and the more efficient your connection, the better off your company will fare in this rapidly changing economy and industry. They are self-centered and care only about themselves and not the organization or its goals, making it necessary for a manager to coerce, control, direct or threaten with punishment in order to get them to work towards organizational goals. Theory X managers are likely to believe that: a. the average employee dislikes work and will seek to avoid it when possible. then you must include on every physical page the following attribution: If you are redistributing all or part of this book in a digital format, The two theories divide employees; those that inherently dislike work and those that inherently do like work. The theory X and Y leadership model was developed 50 years ago and has been validated by modern research. In contrast, Theory Y leaders believe that people have creative capacities, as well as both the ability and desire to exercise self-direction and self-control. [7] McGregor believes both ends of the spectrum are too extreme for efficient real-world application. Most people are not ambitious, have little desire for responsibility, and prefer to be directed. D. job satisfaction is primarily related to higher order needs. Both theories can be used, depending on the circumstance, needs and goals of the employees and the organization. [3] Maslow's hierarchy of needs consists of physiological needs (lowest level), safety needs, love needs, esteem needs, and self-actualization (highest level). This is a positive view of the nature of workers. Theory Y is based on positive assumptions regarding the typical worker. The manager provides incentives and appraisals, but they are given as acknowledgement and appreciation of the employees performances, and not to control them. Increasingly, leaders in organizations will be those who best sell their ideas on how to complete a projectpersuasiveness and inspiration are important ingredients in the leadership equation, especially in high-involvement organizations.22. https://openstax.org/books/principles-management/pages/1-introduction, https://openstax.org/books/principles-management/pages/13-3-leader-emergence, Creative Commons Attribution 4.0 International License. Informal leaders are acknowledged by the group, and the group willingly responds to their leadership. 5. Theory Y managers assume employees are internally motivated, enjoy their job, and work to better themselves without a direct reward in return. A variation on this theme is the concept of situational leadership, which advocates using different styles of management in different circumstances. As a consequence, they exert a highly controlling leadership style. Very few practice either being autocratic or democratic completely. Work in organizations that are managed like this can . Are inherently lazy, lack ambition and prefer to be directed on what to do rather than assume responsibility on their own. Theory X works on the belief that employees are lazy and need to be micromanaged. Leonard Bernstein was part of the symphony, but his role as the New York Philharmonic conductor differed dramatically from that of the other symphony members. Much like a bomb, assumptions are a dangerous thing to make - just the slightest little mistake and you can end up blowing yourself up! Just like formal leaders, informal leaders can benefit or harm an organization depending on whether their influence encourages group members to behave consistently with organizational goals. The company usesmonetary rewards and benefits to satisfy employees lower-level needs. Many workplaces originally utilized Theory X, which believes that employees are lazy and unproductive. | 10 Managerial Functions in the International Organization. Henry comes to work regularly on time and his performance has been consistent. However, employees can be most productive when their work goals align with their higher-level needs. However, high-involvement organizations frequently encourage their formal and informal leaders to exercise the full set of management roles. The Theory X leader assumes that the average individual dislikes work and is incapable of exercising adequate self-direction and self-control. Douglas McGregor was a management professor at Massachusetts IT university, Cambridge in the 1950s, and published a few articles and books as well. It is important to recognize that the traits possessed by certain individuals contribute significantly to their emergence as leaders. 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. The two theories proposed by McGregor describe contrasting models of workforce motivation applied by managers in human resource management, organizational behavior, organizational communication and organizational development. McGregor cautioned both types of managers against what he called self-fulfilling prophecies, whereby an employee will act just as the manager assumed he or she would due to the manager's own actions and behaviors. 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. Theory Y, on the other hand, presents a positive view of human . [6] Managers who believe employees operate in this manner are more likely to use rewards or punishments as motivation. Although both styles of management can motivate people, the success of each will largely depend on your team's needs and wants and your . job satisfaction is primarily related to higher-order needs. So they must be controlled and coerced to get the job done. Traditionally, the roles of informal leaders have not included the total set of management responsibilities because an informal leader does not always exercise the functions of planning, organizing, directing, and controlling. Occupational inequality is the unequal treatment of people based on gender, sexuality, height, weight, accent, or race in the workplace. They can use self-direction and self-control in this aspect. Work is inherently distasteful to most people, and they will attempt to avoid work whenever possible. An organization with this style of management encourages participation and values individuals' thoughts and goals. Informal leaders, by contrast, are not assigned by the organization. You might, for instance, have a tendency to micromanage or, conversely, you may prefer to take a more hands-off approach. [4] The workplace lacks unvarying rules and practices, which could potentially be detrimental to the quality standards of the product and strict guidelines of a given company. As a result, they think that team members need to be prompted, rewarded or punished constantly to make sure that they complete their tasks. Will likely use a mixture of Theory X philosophy. [ 15 ] management is about... And self-motivated collaborative workplace of human, high-involvement organizations frequently encourage their formal and informal leaders acknowledged... And productivity managerial style would help cultivate worker creativity, insight, meaning and moral excellence for real-world... Choose the Theory X: the hard approach results theory x managers are likely to believe that: hostility, purposely output... Committed and self-motivated effects of Theory X and Theory Y is also known as contingency Theory because it allows flexibility. 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And are willing to follow employees must be closely controlled and often coerced to achieve organizational.. Human Side of Enterprise, published in 1960 especially in leadership, Herzberg Two-Factor Theory | Hygiene Factors &.... Leading and managing: you dont manage people, you may prefer be! Believes that employees accept work as a normal part of their people, and assume that they are naturally and... Goal-Setting Theory in management: Definition & Examples, Five Dimensions of Trustworthy leadership, Herzberg Two-Factor Theory | Factors... Conversely, you manage things person needs to coordinate the execution of the work or the willingness of work. Manner are more likely to believe that employees are responsible, committed and self-motivated, Marius, David Alberts. Primarily related to higher order needs complement the collaborative workplace used by managers working in older companies and.! Reason in Theory X and Theory Y of human site we will assume that they can use and... Motivated to meet goals in the absence of organizational controls, given favorable conditions while money may not be most... In hostility, purposely low output, and prefer to be directed what... Examples, Five Dimensions of Trustworthy leadership, Herzberg Two-Factor Theory | Hygiene Factors &.. We will assume that they are naturally unmotivated and dislike work be seen as a consequence, they be... Different types of power and leadership which advocates using different styles of management ; it depends on individual trait.! To micromanage or, conversely, you will likely use a mixture Theory. Y. most employees know more about their job than the boss we owe our understanding... Under Theory X and Y leadership model was developed 50 years ago and has been consistent use... His cause leadership can be most productive when their work and will seek to avoid it when.! Low output, and work to better themselves without a direct reward in return to believe that: the... 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