In other words, employees have a strong desire for affiliation. According to Theory Z, people want to maintain a work-life balance, and they value a working environment in which things like family, culture, and traditions are considered to be just as important as the work itself. McGregor grouped the hierarchy into a lower order Theory X needs and a higher order Theory Y needs. Many organizations are using Theory Y techniques. This allows the individual to receive either a direct reward or a reprimand, depending on the outcome's positive or negative nature. The democratic approach of Theory Y makes people feel comfortable as a result of which they commit themselves wholeheartedly to the organization. However, McGregor asserts that neither approach is appropriate, since the basic assumptions of Theory X are incorrect.
Which type of manager are you — and which type of management do you prefer? People want to avoid work and they must be continually coerced and controlled. Training materials are also provided. A master of a trade such as a plumber or an electrician trains several apprentices. It takes measures and creates programs to help foster this happiness and well-being. In instances where the thinking process is important and the employee is expected to act on their own responsibility, managers prefer to opt for Theory Y.
Theory X assumes that individuals are base, work-shy and constantly in need of a good prod. Description: Theory X and theory Y follow different methodologies of keeping people motivated. But, if the motivation behind the march is to check up on you, then you might be dealing with a Theory X manager. Unsatisfied lower needs will dominate unsatisfied higher needs and must be satisfied before the person can climb up the hierarchy. What are the characteristics of a Theory X manager? The human side of enterprise. And a bit of entertainment. This theory has always applied well to independent professionals, small-business owners, craftspeople, and the like.
These basic needs are also called deficiency needs because if they are not met by an individual, then that person will strive to make up the deficiency. One assumption is that they seek to build cooperative and intimate working relationships with their coworkers. For example, a company with low-skill workers who are uneducated may need to use Theory X methods in order to keep their team moving forward. This style makes the assumption that so must come from an external source—the manager. McGregor makes the point that a command-and-control environment is not effective because it relies on lower needs for motivation, but in modern society those needs are mostly satisfied and thus no longer motivate. In this situation, one would expect employees to dislike their work, avoid responsibility, have no interest in organizational goals, resist change, etc.
There are some key assumptions under theory Y. On the contrary, managers who choose the Theory Y approach have a hands-off style of management. The resulting discussions lead to new goals—goals that everyone understands. These companies essentially incorporate Theory Y into their everyday operations. Big Four Accounting Firms Z Theory is commonly used by the Big Four, the name given to the largest accounting firms in the world.
Managers naturally guide the discussion, but rank-and-file employees begin to realize they are being treated like owners of the business and respond accordingly. This management style, in fact, hinders the satisfaction of higher-level needs. What makes them stay with us despite the wealth of subject matter expertise we've developed over the years? Theory X follows an authoritarian approach to motivate people. The result of this line of thought is that Theory X managers naturally adopt a controlling style based on the threat of punishment. According to , Theory Z management tends to promote stable employment, high productivity, and high employee morale and satisfaction.
Theory Y gives management no easy excuses for failure. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. As the business succeeds, employees share in the rewards through incentive plans, stock ownership, or both. A close reading of The Human Side of Enterprise reveals that McGregor simply argues for managers to be open to a more positive view of workers and the possibilities that create enthusiasm. Theory Y manager will try to remove the barriers that prevent workers from fully actualizing themselves.
Theory X and Theory Y pertain to employee motivation and have been used in human resource management, organizational behavior analysis, and organizational development. However, McGregor asserts that neither approach is appropriate since the foundations of Theory X are incorrect. They don't have to be forced or threatened. On the other hand, companies who follow theory Y have a more decentralized approach, which means that the authority is distributed among employees. Two reasons: 1 high-quality products and 2 low prices. Instead of money being the sole motivator, other elements such as positive encouragement and a pleasant work area are added. Theory X is the view that traditional management has taken towards the workforce.
The authoritarian leadership style is therefore the most appropriate leadership style in Theory X. Enlightened managers, on the other hand, use Theory Y, which produces better performance and results. John is author of the classic books Open-Book Management and The Open-Book Experience. Values, beliefs, and customs differ from country to country and group to group, but all people have similar needs. Thus, we can say that Theory X presents a pessimistic view of employees nature and behaviour at work, while Theory Y presents an optimistic view of the employees nature and behaviour at work. Theory X In Theory X, 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. Once those needs have been satisfied, the motivation disappears.
The police manager: Professional leadership skills. A Theory X manager would assume that employees need external control in order to be productive. McGregor urged companies to adopt Theory Y. Solutions Empxtrack offer solutions for talent management. Administration in Social Work: 356. He was an advocate for Theory Y management.