This theory has also been criticized for being too idealistic and unachievable by some critics. [6] Theory X is a "we versus they" approach, meaning it is the management versus the employees. It refers to the management style that follows a more participative, interactive and optimistic approach. Sherri has taught college business and communication courses. They can only work under fear, and proper supervision. In his 1960 book, The Human Side of Enterprise, McGregor proposed two theories by which managers perceive and address employee motivation. And the most lauded skills, especially in leadership, lie in the ability to connect seemingly disparate ideas and communicate those ideas clearly. As a result, they think that team members need to be prompted, rewarded or punished constantly to make sure that they complete their tasks. 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. Managers give employees some free space and flexibility to work. Theory X managers are likely to believe that employees are lazy, fear-motivated, and in need of constant direction. Many leaders emerge out of the needs of the situation. They were created by Douglas McGregor while he was working at the MIT Sloan School of Management in the 1950s, and developed further in the 1960s. Pacesetting Leadership: What It Is and When to Use It, 3 Leadership Principles to Foster Team Success, The 4 phases of the project management life cycle, The go-to toolkit for effortless documentation. Emergent leaders, on the other hand, arise from the dynamics and processes that unfold within and among a group of individuals as they endeavor to achieve a collective goal. The company usesmonetary rewards and benefits to satisfy employees lower-level needs. 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They can use self-direction and self-control in this aspect. Evidence suggests that managers from different parts of the global community commonly hold the same view. Advertising, Public relations, Marketing and Consumer Behavior, Psychology, Behavioral And Social Science. This could lead to more turnover and absenteeism. Enrolling in a course lets you earn progress by passing quizzes and exams. PEOPLE WILL SEEK INCREASED RESPONSIBILITY AND CHALLENGE AND WILL WORK HARD UNDER THE RIGHT CONDITIONS True or false: A research called the "New Generation" of Chinese organizational leaders found that the new generation group scored the same on individualism as the current and older generation groups. However, McGregor asserts that neither approach is appropriate, since the basic assumptionsof Theory X are incorrect. 147 lessons Two reasons: (1) high-quality products and (2) low prices. This is a participative management style that gives rise to a more collaborative work environment, whereas theory X leads to micromanaging. Theory X holds a pessimistic view of employees in the sense that they cannot work in the absence of incentives. How do leaders influence and move their followers to action? These managers tend to be more present in entry-level jobs where productivity and process are favored over independence or innovation, but they may show up at any company level and in any industry. are not subject to the Creative Commons license and may not be reproduced without the prior and express written Theory X managers are likely to believe that: A.the average person dislikes work and will seek to avoid it when possible. As a result, they must be closely controlled and often coerced to achieve organizational objectives. This ensures work stays efficient, productive, and in-line with company standards.[9]. This theory supports threatening supervisory power. They're full of potential, and it's through their own. In many instances, people are put into positions of leadership by forces outside the group. Work is inherently distasteful to most people, and they will attempt to avoid work whenever possible. The Theory X leader assumes that the average individual dislikes work and is incapable of exercising adequate self-direction and self-control. Accountability from employees is needed (Theory X) and flexibility and creativity is needed as well (Theory Y). However, employees can be most productive when their work goals align with their higher-level needs. One psychologist, Douglas McGregor, categorized people's motivations into two broad categories: Theory X and Theory Y. But how do leaders effectively exercise this influence? Intervention of the management is considered to be important to deal with passive, resistant workers. Textbook content produced by OpenStax is licensed under a Creative Commons Attribution License . Theory X assumes that people dislike work and will avoid doing anything they don't have to do. Participative Leadership Theory & Examples | What is Participative Leadership? As such, McGregor acknowledged both types of managers as being a legitimate means of motivating employees, but he felt that you would get much better results through the use of Theory Y rather than Theory X. Douglas McGregor believed that there were two types of managers: Theory X and Theory Y. The capacity for creativity spreads throughout organizations. As a result, they think that team members need to be prompted, rewarded or punished constantly to make sure that they complete their tasks. [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. job satisfaction is primarily related to higher order needs. Theory Y managers, on the other hand, are more optimistic. Management believes employees' work is based on their own self-interest. A manager's behavior and expectations are as contagious as the plague. Once you complete this lesson you'll be able to understand the two different types of managers as theorized by Douglas McGregor. As the challenges facing a group change, so too may the flow of power and leadership. Theory X Do you agree with Riya or Joseph? [6] Due to these assumptions, Theory X concludes the typical workforce operates more efficiently under a hands-on approach to management. c. employees are motivated mainly by the chance for advancement and recognition. As a consequence, they exert a highly controlling leadership style. [4] McGregor's perspective places the responsibility for performance on managers as well as subordinates.[5]. The use of rationality, expert power, and/or moralistic appeal generally elicits commitment and the internalization of the leaders goals.29, Leaders who use referent and expert power commonly experience a favorable response in terms of follower satisfaction and performance. In fact, most work groups contain at least one informal leader. An individual who was self- motivated was best left alone in a. Micromanagement is not looked at positively in todays scenario, leading to Theory Y being the most productive way of management. Theory X management is substantially a matter of crafting positive and negative incentives, such as bonuses or other rewards for meeting targets, or progressive discipline for falling short, which may include remedial training. Also, participative decision-making may not always be feasible or successful due to the nature of the work or the willingness of the workers. Interactive, participative style of managing. Different situations call for different configurations of knowledge, skills, and abilities. Humanistic psychologist Abraham Maslow, upon whose work McGregor drew for Theories X and Y, lessons in math, English, science, history, and more. 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 are no longer motivating. Enlightened managers use Theory Y, which produces better performance and results, and allows people to grow and develop. The employee is not responsible and hence must be supervised or directed towards the goal of the organization. Theory Y is used by managers who believe employees are responsible, committed and self-motivated. Theory X managers tend to take a pessimistic view of their people, and assume that they are naturally unmotivated and dislike work. This could additionally lead to a bad reputation. The employees do not dislike work and it can be a source of satisfaction or joy for them. Informal leaders are acknowledged by the group, and the group willingly responds to their leadership. Theory X managers are likely to believe that: a. the average employee dislikes work and will seek to avoid it when possible. Why were U.S. consumers clambering forcars, televisions, stereos, and electronics fromJapan? However, neither of these extremes is optimal. CRC Press; New York; pp. This is much more likely to happen when the leaders influence flows out of intrinsic such as rationality, expertise, moralistic appeal, and/or referent power. 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. During the 1980s, American business and industry experienceda tsunami of demand for Japanese products and imports, particularly in the automotive industry. Research indicates that people are unlikely to follow individuals who, for example, do not display drive, self-confidence, knowledge of the situation, honesty, and integrity. So grab your bomb repellent while we explore these two different types of managers by discussing the assumptions of each. The Theory X manager assumes employees hate the idea of having to go to work and do so only to earn a paycheck and the security it offers. 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. Leaders hold a unique position in their groups, exercising influence and providing direction. Here, managers see employees as responsible and proactive. Good leaders, whether formal or informal, develop many sources of power. Most people have little aptitude for creativity in solving organizational problems. 1999-2023, Rice University. An optimal managerial style would help cultivate worker creativity, insight, meaning and moral excellence. Once surgery begins, however, the surgeon is completely in charge. According to the Theory of X and Y, there are 2 categories of managers . He referred to these opposing motivational methods as Theory X and Theory Y management. 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. Are responsible, committed and self-motivated # x27 ; s motivations into two broad categories: Theory leads! Configurations of knowledge, skills, especially in leadership, lie in the sense that can... 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