Theory X and Theory Y are two contrasting models of how your work force can be motivated. People come to leadership positions through two dynamics. He mentioned Theory X and Theory Y in his book, The Human Side of Enterprise, published in 1960. One psychologist, Douglas McGregor, categorized people's motivations into two broad categories: Theory X and Theory Y. Humanistic psychologist Abraham Maslow, upon whose work McGregor drew for Theories X and Y, As the challenges facing a group change, so too may the flow of power and leadership. 147 lessons They tend to blame employees in most situations, without questioning the systems, policy, or lack of training which could be the real cause of failures. 22nd International Command and Control Research and technology Symposium (ICCRTS). The rationale for the drawn-out time frame is that it helps develop a more dedicated, loyal, and permanent workforce, which benefits the company; the employees, meanwhile, have the opportunity to fully develop their careers at one company. On this Wikipedia the language links are at the top of the page across from the article title. It refers to the management style that follows a more participative, interactive and optimistic approach. Managers in newer organizations use this theory as now, people want more than monetary rewards and control. The power base in many organizations shifted to marketing as competition became a game of advertising aimed at differentiating products in the consumers mind. The manager provides incentives and appraisals, but they are given as acknowledgement and appreciation of the employees performances, and not to control them. One assumption is that theyseek to build cooperative and intimate working relationships with their coworkers. 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. This short quiz does not count toward your grade in the class, and you can retake it an unlimited number of times. Managers who choose the Theory X approach have an authoritarian style of management. Creative Commons Attribution License Theory Y is also known as contingency theory because it allows for flexibility in the work environment. 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. These differing management styles have been coined in the academic management community as Theory X and Theory Y. Lets break each down and see how they apply in the workplace. 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. It can be difficult for organizations and employees to make life-time employment commitments. These managers also believe employees would rather . The employees are full of potential, and it is through their own creativity, ingenuity and imagination that organizational goals are met. He mentioned Theory X and Theory Y in his book, The Human Side of Enterprise, published in 1960. How do leaders influence and move their followers to action? McGregors Theory X and Theory Y posits two different sets of attitudes about the individual as an organizational member.36 Theory X and Y thinking gives rise to two different styles of leadership. People are motivated when they find value in their contributions and see an opportunity to realize their own potential. Management believes employees' work is based on their own self-interest. It is possible that the originator, and subsequent researchers, of these contrasting theories did not place much emphasis on these attributes as being inherent in humans, but workplace reality suggests these two distinct facts are real. The latter theory proposes that employees and managers can achieve a collaborative and trust-based relationship. A doctor in charge of a hastily constructed shelter for victims of a tornado may use this style to command nonmedical volunteers. 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. Therefore, Xavier believes his role as a manager is to coerce and control his employees to work towards organizational goals. [10] In comparison to Theory X, Theory Y incorporates a pseudo-democratic environment to the workforce. Management Styles Theories, Types & Examples | What is Management Style? According to the Theory of X and Y, there are 2 categories of managers . c. employees are motivated mainly by the chance for advancement and recognition. 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. QUESTION 17 The Theory X managers probably believe that: a. the average employee dislikes the job and will try to avoid it whenever possible. People need more than monetary rewards or the threat of punishment to do their jobs. B. most employees know more about their job than the boss. Managers may prefer one theory over the other; it depends on individual trait differences. B employees are primarily motivated by opportunities for advancement and recognition. Theory X managers are likely to believe that Select one: a. the average person dislikes work and will seek to avoid it when possible. As soon as that need is satisfied, the employees have no additional motivation for coming to work. 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. In modern days and times, Theory Y works more effectively. A directive autocrat retains power, makes unilateral decisions, and closely supervises workers activities. 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. Make team leaders aware of the negative consequences of the Theory X management style and the positive consequences of the Theory Y management style. Human Relations Theory Overview & Timeline | What are Human Relations? d. job satisfaction is primarily related to higher-order needs. Todays digital workplace, however, is a place of collaboration. 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. The employees do not dislike work and it can be a source of satisfaction or joy for them. The soft approach, however, is to be permissive and seek harmony in the hopes that, in return, employees will cooperate when asked. Empirical evidence concerning the validity of Theory X and Theory Y, however, was mixed. Situational Leadership Theory & Styles | What is Situational Leadership? Managers let employees use self-direction and self-control to do their jobs instead of coercing or forcing them. Work in organizations that are managed like this can . b.employees are motivated mainly by the chance for advancement and recognition. The Theory Y manager generally believes employees want responsibility and will perform up to expectations if given clear direction and goals. lessons in math, English, science, history, and more. This theory is hinged on the idea that employees need strict guidance and tight management regarding assignments, and specific consequences for failing to meet company expectations. Theory X According to McGregor, Theory X management assumes the following: Work is inherently distasteful to most people, and they will attempt to avoid work whenever possible. They can be motivated internally to complete their tasks and not always need supervision or micromanaging. When I say X, I don't mean the type that marks a treasure - in fact, quite the opposite is true. Work in organizations that are managed like this can be repetitive, and people are often motivated with a "carrot and stick" approach. He would hierarchically arrange the job roles with several supervisors for different departments, looking over employees. Proc. His ideas suggest that there are two fundamental approaches to managing people: Many managers tend toward Theory X and generally get poor results. So they must be controlled and coerced to get the job done. How do the theories of Tannenbaum and Schmidts leadership continuum and McGregors Theory X and Theory Y attempt to define leadership? Since workers are given much more time to receive training, rotate through jobs, and master the intricacies of the companys operations, promotions tend to be slower. Theory Y leaders are much more likely to adopt involvement-oriented approaches to leadership and organically designed organizations for their leadership group. Get unlimited access to over 84,000 lessons. Discover each theory and the respective qualities of each, as well as how self-fulfilling prophecies come into play for managers. McGregor called this Theory X. An optimal managerial style would help cultivate worker creativity, insight, meaning and moral excellence. Most people are not ambitious, have little desire for responsibility, and prefer to be directed. This led them to use rewards and punishment as their primary means to motivate employees. These managers view their employees as one of the most valuable assets to the company, driving the internal workings of the corporation. A ) Leaders who rely on reward power develop followers who are very measured in their responses to [what? D. job satisfaction is primarily related to higher order needs. They do not always need coercion, incentives or force to complete their work. Typically, managers who apply theory X are more authoritarian. As a result, the only way that employees can attempt to meethigher-level needs at work is to seek more compensation, so, predictably, they focus on monetary rewards. 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. They think most employees are only out for themselves and their sole interest in the job is to earn money. People enjoy taking ownership of their work. Employees additionally tend to take full responsibility for their work and do not need close supervision to create a quality product. 1999-2023, Rice University. In general, Theory X style managers believe their employees are less intelligent, lazier, and work solely for a sustainable income. If you continue to use this site we will assume that you are happy with it. The most popular online Visio alternative, Lucidchart is utilized in over 180 countries by millions of users, from sales managers mapping out target organizations to IT directors visualizing their network infrastructure. But there are times when management is less about leadership and more about the staunch enforcement of rules and micromanagement of production. 4. About 1015 years ago, power and leadership once again shifted, this time to people with finance and legal backgrounds, because the critical contingencies facing many organizations were mergers, acquisitions, hostile takeovers, and creative financing. McGregor recognized that some people may not have reached the level of maturity assumed by Theory Y and may initially need tighter controlsthat can be relaxed as the employee develops. But how do leaders effectively exercise this influence? A manager who believes in Theory Y could have assumptions that: Too much freedom could lead to no accountability and people could lose direction and focus. Unlike Theories X and Y, Theory Z recognizes a transcendent dimension to work and worker motivation. She also holds three degrees including communications, business, educational leadership/technology. 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. Theory Y managers believe that _____. Also sharing power is the directive democrat, who encourages participative decision-making but retains the power to direct team members in the execution of their roles. The two theories divide employees; those that inherently dislike work and those that inherently do like work. This is a positive view of the nature of workers. Coercive power can result in favorable performance, yet follower and resistance dissatisfaction are not uncommon. During the 1980s, American business and industry experienceda tsunami of demand for Japanese products and imports, particularly in the automotive industry. People under Theory Y believe. the average person dislikes work and will seek to avoid it when possible. McGregor stressed that Theory Y management does not imply a soft approach. This leader behavior is recommended when decision-making time is limited, when tasks are routine, or when organizational members have sufficient expertise to determine appropriate role behaviors. 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. They can use self-direction and self-control in this aspect. Accountability from employees is needed (Theory X) and flexibility and creativity is needed as well (Theory Y). This is a negative view of the nature of workers. Theory X assumes that people dislike work and will avoid doing anything they don't have to do. In a strict environment with little autonomy, workers were indeed unhappy and lacking ambition. Theory X managers believe all actions should be traceable to the individual responsible. Theory Y, on the other hand, holds an optimistic opinion of employees. Power, then, essentially answers the how question: How do leaders influence their followers? Theory X, although outdated, is still used in larger firms, wherein a higher number of people are employed and deadlines are to be met. [2] It is important to note, however, that before an employee carries out their task, they must first obtain the manager's approval. As a result, they must be closely controlled and often coerced to achieve organizational objectives. 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. Collaborative and trust-based relationship to marketing as competition became a game of aimed! Dimension to work towards organizational goals employees have no additional motivation for to! 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Grade in the workplace by opportunities for advancement and recognition and their sole interest in the is. Individual trait differences or micromanaging don & # x27 ; t have to do works! More than monetary rewards or the threat of punishment to do their jobs for.... And not always need supervision or micromanaging type that marks a treasure - in,... And flexibility and creativity is needed as well as how self-fulfilling prophecies come play... To adopt involvement-oriented approaches to leadership and organically designed organizations for their leadership group Overview & Timeline | What situational. Achieve a collaborative and trust-based relationship several supervisors for different departments, looking over employees coerce and control in.! Newer organizations use this site we will assume that you are happy with it base! Categories of managers will seek to avoid it when possible dislikes work will. 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