Douglas MacGregor

1
Douglas MacGregor

• Theory X and Theory Y

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The Human Side of Enterprise

• In his 1960 management book, The Human Side of
  Enterprise, Douglas McGregor suggested two very
  different management views on how employees
  behave and how to achieve employee motivation.
• He referred to these nearly opposite management
  approaches as Theory X and Theory Y.
• Both of these theories assume that management's
  role is to organize human resources - employees,
  in a way that maximises productivity. But how the
  two types of manager achieve this objective are
  very different.

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Theory X and Theory Y managers have completely
different views of workers.

• If a manager has a Theory X approach to
  management , he will always set objectives for
  workers without consulting them, will give
  instructions without feedback and will punish or
  reward according to strict rules.
• In contrast, a manager who has a Theory Y view of
  workers will involve them in decision making,
  encourage feedback during communication and
  empower workers.

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Behaviour of Theory X Managers

• Theory X managers take the view that
• Workers must be forced or controlled in work to
  do a good job
• Workers prefer to be told what to do supervised
  and instructed
• Work is unpleasant to most people, who will
  attempt to avoid work whenever possible.
• Most employees are not ambitious, have little
  desire for responsibility, and prefer to have
  simple, understandable tasks.
• Motivation occurs only at the physiological and
  security levels of Maslow's Hierarchy of Needs
  forget Hertzbergs motivators Most workers have
  little capacity for creativity in solving
  problems.

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Applying Theory X Management the business impact

• If Theory X managers are in charge, the a
  business is likely to use the principles of
  Taylors scientific management to control and
  ensure quality. So we would see
• Motivation through financial means - even piece
  rate pay
• High levels of supervision
• Jobs broken down into simple tasks
• A strict hierarchy each worker having clear
  understanding of their role
• An authoritarian management

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Behaviour of Theory Y Managers

• Theory Y managers take the view that
• Workers learn to accept and seek responsibility
• Workers will be self-directed and creative in
  their efforts to meet their work and
  organizational objectives.
• Workers will be committed to quality and
  productivity objectives if rewards are in place
  that address higher needs such as
  self-fulfilment.
• The capacity for creativity spreads through all
  layers of the work place everyone has something
  to contribute.

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Applying Theory Y Management the business
impacts

• If Theory Y managers are in control the
  organization is likely to use the principles of
  management more like Hertzberg's motivators to
  improve employee performance
• Decentralization and delegation - If firms
  decentralize control and reduce the number of
  layers of hierarchy, managers will have wider
  spans of control and will delegate some
  responsibility and decision making to them.
• Job enlargement / enrichment/empowerment -
  Broadening the scope of an employee's job adds
  variety and opportunities to satisfy higher
  level needs like self fulfilment.

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Theory Y Management the business impacts

• Workers will be consulted during the decision
  making process, which motivates them and takes
  advantage of their creativity and problem solving
  skills and provides workers with more control
  over their work environment.
• Performance Appraisals can be used to have each
  employee set their own objectives and take part
  in the process of evaluating how well they were
  met.
• .