McGregor's Theory X and Theory Y

 

 

Dougals McGregor proposed the theory X and Theory Y in 1957 (Kopelman and Prottas, 2013). McGregor's Theory X and Theory Y explain that two type of management style is influenced by the perceptions that managers hold of employees (Byorum, 2015). McGregor's Theory X and Theory Y commonly using in the field of management, leadership and motivation (Islam and Eva, 2017)

Figure 1: Application of Mcgregor’s Theory X and Theory Y: Perception of Management toward the Employees in the Banking Industry of Bangladesh

                                                                                                (Islam and Eva, 2017,P.135)

Theory X

Theory X managers do not interesting in human issues and works based with the fact and figures (Islam and Eva, 2017). It is the traditional view of direction and control(Cunningham, 2011). Theory X Style managers believe that their employees are less intelligent, lazier than managers or work solely for sustainable income (Language, 2018).

According to Language (2018) Theory X Leadership assumes as follows, 

• Leadership assumes that money is only motivation for the employees, and they will attempt to avoid work whenever possible.
• Most people are not ambitious, have little desire for responsibility, and dislike the work.
• Most people have little aptitude for creativity in solving organizational problems. Motivation occurs only at the physiological and security levels of Maslow's Needs Hierarchy.
• Most people are self-centered. As a result, they must be closely controlled and often coerced to achieve organizational objectives
• Most people resist change. Most people are gullible and unintelligent. The average human being has an inherent dislike of work and will avoid it. Most people must be coerced, controlled, directed, and threatened with punishment. The average human being prefers to be directed, wishes to avoid responsibility, has relatively little ambition, wants security.
• Centralized control. Can be categorized into unskilled labor 

 

Theory Y

Theory Y managers make the employee internally motivated and enjoy their work themselves without a direct “reward’ in return (Language, 2018). Responsibility of the Theory Y managers are providing opportunities for employee development and   drive the employed to achieve the organizational objectives (Kopelman and Prottas, 2013).

According to Cunningham (2011)Theory Y is based on the assumptions as follows,  

• The expenditure of physical and mental effort in work is as natural as play or rest. The average human being does not inherently dislike work. Depending upon controllable conditions, work may be a source of satisfaction, or a source of punishment.
• External control and the threat of punishment are not the only means for bringing about effort toward organizational objectives. People will exercise self-direction and self-control in the service of objectives to which they are committed.
• Commitment to objectives is a function of the rewards associated with their achievement. The most significant of such rewards, e.g. the satisfaction of ego and self-actualization needs, can be direct products of effort directed towards organizational objectives.
• The average human being learns, under proper conditions, not only to accept but to seek responsibility. Avoidance of responsibility, lack of ambition, and emphasis on security are generally consequences of experience, not inherent human characteristics.
• The capacity to exercise a relatively high degree of imagination, ingenuity, and creativity in the the solution of organizational problems is widely, not narrowly, distributed in the population.
• Under the conditions of modern industrial life, the intellectual potentialities of the average human being are only partially utilized. Theory Y assumptions can lead to more cooperative relationships between managers and workers. A Theory Y management style seeks to establish a working environment in which the personal needs and objectives of individuals can relate to, and harmonies with, the objectives of the organization.

In my personal experience organization, one of the reputed IT service company in Sri Lanka. General Manager to the mentioned Engineering Division suddenly decided to t retire before the age level.  I believe that he was Y type manager because he respects all the team subordinates and trusts their work. he drives the team to the organizational goal. All the subordinate were participate in the decision making at his management. With hit retirement, Assitant General Manage promoted to the relevant position by the senior management, and I believe his management style was X type. He is not the truest of the subordinates.  He is an owned decision-maker not listing to subordinate's ideas. He does not focus on the goal of the organization. Finally, the result was 6 employees leave the company within one-two months period and Gross drastically setting down from 21Mn. / Month to 9Mn./Month.

References:

Byorum, S. E. (2015) ‘Management Theory: X, Y, Z and Maslow’, Human Dynamics in Business, (April), pp. 47–48. Available at: https://static1.squarespace.com/static/5744ee130442626ff0b342e9/t/57521d7960b5e9c65003cebe/1464999289982/Management+Theory+-+X-Y-Z-Maslow.pdf.

Cunningham, R. A. (2011) ‘Douglas Mcgregor - a Lasting Impression’, McGregor’s theory X and theory Y, p. 1. Available at: http://libra.naz.edu/docview/912503038?accountid=28167%5Cnhttp://linksource.ebsco.com/linking.aspx?sid=ProQ:abiglobal&fmt=journal&genre=article&issn=&volume=&issue=&date=2011-09-01&spage=N_A&title=Ivey+Business+Journal+Online&atitle=DOUGLAS+MCGREGOR+-+A+L.

Islam, S. and Eva, S. A. (2017) ‘Application of Mcgregor’s Theory X and Theory Y: Perception of Management toward the Employees in the Banking Industry of Bangladesh’, The International Journal Of Business & Management, 5(11), pp. 135–145. Available at: www.theijbm.com.

Kopelman, R. E. and Prottas, D. J. (2013) ‘Theory X and Theory Y’, Sage Encyclopedia of Management Theories, pp. 874–878.

Language, E. (2018) ‘54. Hrushi Zendage’, (48612).