Vassiliou, Marius, and David S. Alberts (2017). The soft approach results in a growingdesire for greater reward in exchange for diminished work output. As a consequence, they exert a highly controlling leadership style. Once surgery begins, however, the surgeon is completely in charge. While there is a more personal and individualistic feel, this leaves room for error in terms of consistency and uniformity. Managerial Functions in the International Organization. A manager dealing with a group of experts would likely use this theory and give them freedom and space to work. The employee dislikes working, is not motivated enough and thus avoids working, whenever there is an opportunity. Theory Zalso makes assumptions about company culture. 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. This is a positive view of the nature of workers. He defines himself as his companys philosopher. Most managers generally use the mixture of the two theories. A group often turns to the member who possesses the knowledge, skills, and abilities that the group requires to achieve its goals.25 People surrender their power to individuals whom they believe will make meaningful contributions to attaining group goals.26 The individual to whom power is surrendered is often a member of the group who is in good standing. When I say X, I don't mean the type that marks a treasure - in fact, quite the opposite is true. Situational Leadership Theory & Styles | What is Situational Leadership? Do you agree with Riya or Joseph? 5. Theory X starts from the assumption that people are naturally lazy, want to avoid work as much as possible, do not wish to take responsibility, have no . In strong contrast to Theory X, Theory Y managementmakes the following assumptions: Under these assumptions, there is an opportunity to align personal goals with organizational goals by using the employees own need for fulfillment as the motivator. He would hierarchically arrange the job roles with several supervisors for different departments, looking over employees. Theory Y managers, on the other hand, are more optimistic. A crisis could also demand more control and thus, this theory can come in handy. I see Theory X and Theory Y as two natural divisions of people; groupings into those who dislike working and those who are inclined to working without persuasion. Many consider such actions necessary for self-managing work teams to succeed. Advertising, Public relations, Marketing and Consumer Behavior, Psychology, Behavioral And Social Science. But there are times when management is less about leadership and more about the staunch enforcement of rules and micromanagement of production. Slow promotions, group decision-making, and life-time employment may not be a good fit with companies operating in cultural, social, and economic environments where those work practicesare not the norm. They are not inherently irresponsible or lazy. Empirical evidence concerning the validity of Theory X and Theory Y, however, was mixed. They're full of potential, and it's through their own. Most people have little aptitude for creativity in solving organizational problems. In 1960, Douglas McGregor published two theories (Theory X & Theory Y) of employee motivation based on the assumptions that managers make about employees. It is to McGregors thorough research and curiosity in behavior and incentive that we owe our current understanding of Theory X and Theory Y. Peopleare motivated by money and fears about their job security. As a Theory X manager, Xavier believes that his workers: Xavier assumes that his employees show up for work for their paycheck and the security that a regular, paying job offers. c. employees are motivated mainly by the chance for advancement and recognition. It helped me pass my exam and the test questions are very similar to the practice quizzes on Study.com. Research suggests that rationality is the most effective influence tactic in terms of its impact on follower commitment, motivation, performance, satisfaction, and group effectiveness.30. O most employees know more about their job than the boss. [2] It is important to note, however, that before an employee carries out their task, they must first obtain the manager's approval. The permissive autocrat mixes his or her use of power by retaining decision-making power but permitting organizational members to exercise discretion when executing those decisions. In many instances, people are put into positions of leadership by forces outside the group. It views job rotations and continual training as a means of increasing employees knowledge of the company and its processes while buildinga variety of skills and abilities. In sum, one key to effective leadership, especially as it pertains to the exercise of social and interpersonal influence, relates to the type of power employed by the leader. What might be less immediately understandable are the differing effects of Theory X and Y on resulting behavior and productivity. Managers in newer organizations use this theory as now, people want more than monetary rewards and control. Human Relations Theory Overview & Timeline | What are Human Relations? Different situations call for different configurations of knowledge, skills, and abilities. Try refreshing the page, or contact customer support. Ouchis Theory Z makes certain assumptions about workers. Lucidchart is the intelligent diagramming application that empowers teams to clarify complexity, align their insights, and build the futurefaster. Leaders who rely solely on their legitimate power and authority seldom generate the influence necessary to help their organization and its members succeed. Management believes employees' work is based on their own self-interest. However, neither of these extremes is optimal. It is important to recognize that the traits possessed by certain individuals contribute significantly to their emergence as leaders. [7] McGregor believes both ends of the spectrum are too extreme for efficient real-world application. All rights reserved. Dec 12, 2022 OpenStax. Many writers and researchers have explored how leaders can use power to address the needs of various situations. B. most workers know more about their job than the boss. One view holds that in traditional organizations members expect to be told what to do and are willing to follow highly structured directions. So they must be controlled and coerced to get the job done. [6] Theory X is a "we versus they" approach, meaning it is the management versus the employees. Theory X works on the belief that employees are lazy and need to be micromanaged. job satisfaction is primarily related to higher-order needs. Work is changing. Older, strictly hierarchical conceptions of C2, with narrow centralization of decision rights, highly constrained patterns of interaction, and limited information distribution tend to arise from cultural and organizational assumptions compatible with Theory X. This style is appropriate when participation has both informational and motivational value, when time permits group decision-making, when group members are capable of improving decision quality, and when followers are capable of exercising self-management in their performance of work. 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. Answer the question(s) below to see how well you understand the topics covered above. There are several ways to lead an organization and this theory allows fluidity. It includes a trusting, collaborative and positive relationship between the manager and employees. If you believe that your team members dislike work and have little natural motivation to do a good job, then according to McGregor, you likely use an authoritarian style of management. 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. Modern work gets done through the connection of ideas: The better your ideas and the more efficient your connection, the better off your company will fare in this rapidly changing economy and industry. B.most employees know more about their job than the boss. Because of this, a Theory X approach may be necessary although I believe it's best to give people the benefit of the doubt and go with a more empowering approach to begin with. succeed. [4] He theorized that the motivation employees use to reach self-actualization allows them to reach their full potential. Theory X managers are likely to believe that: most employees know more about their job than the boss. Why were U.S. consumers clambering forcars, televisions, stereos, and electronics fromJapan? Managers let employees use self-direction and self-control to do their jobs instead of coercing or forcing them. An individual who was self- motivated was best left alone in a. Although born and educated in America, Ouchi was of Japanese descent and spent a lot of time in Japan studying the countrys approachto workplace teamwork and participative management. Based on these factors, it is easy to see how Theory X differs from Theory Y and easy to imagine their potential outcomes in the workplace. People come to leadership positions through two dynamics. Practically all managers act as formal leaders as part of their assigned role. But . C. employees are motivated mainly by the chance for advancement and recognition. When employees rise to a higher level of management, it is expected that they will use Theory Z to bring up, train, and develop other employees in a similar fashion. Another assumption is that workers expect reciprocity and support from the company. 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. Also, participative decision-making may not always be feasible or successful due to the nature of the work or the willingness of the workers. Make team leaders aware of the negative consequences of the Theory X management style and the positive consequences of the Theory Y management style. Theory X managers tend to take a pessimistic view of their people, and assume that they are naturally unmotivated and dislike work. Employees additionally tend to take full responsibility for their work and do not need close supervision to create a quality product. Want to cite, share, or modify this book? D. job satisfaction is primarily related to higher order needs. According to the Theory of X and Y, there are 2 categories of managers . 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. McGregor stressed that Theory Y management does not imply a soft approach. This theory is likely to be used when there are new employees, who need direction and accountability. Goal-Setting Theory in Management: Definition & Examples, Five Dimensions of Trustworthy Leadership, Herzberg Two-Factor Theory | Hygiene Factors & Motivation. A compliment or reward from a person we like generally has greater value than one from someone we dislike, and punishment from someone we love (such as tough love from a parent) is less offensive than the pain inflicted by someone we dislike.31. Theory X, although outdated, is still used in larger firms, wherein a higher number of people are employed and deadlines are to be met. Previous post: Improving Problem Solving Skills. lessons in math, English, science, history, and more. Theory X vs Theory Y Managers| Douglas McGregor's Management Theory, Douglas McGregor's Motivation & Management Theories, Adair's Action-Centered Leadership Theory. Work is inherently distasteful to most people, and they will attempt to avoid work whenever possible. On the other hand, more modern, network-centric, and decentralized concepts of C2, that rely on individual initiative and self-synchronization, tend to arise more from a "Theory Y" philosophy. However, one person who seemed to be unafraid of self-inflicted explosions was Douglas McGregor, a behavior management theorist who was heavily influenced by both Abraham Maslow and the Hawthorne Studies. We use cookies to ensure that we give you the best experience on our website. They are not lazy at all. [7] The hard approach depends on close supervision, intimidation, and immediate punishment. Most people avoid responsibility and need constant direction. With this intuitive, cloud-based solution, everyone can work visually and collaborate in real time while building flowcharts, mockups, UML diagrams, and more. Managers may prefer one theory over the other; it depends on individual trait differences. They are inherently lazy, lack ambition and prefer to be directed on what to do rather than assume responsibility on their own. Organizations have two kinds of leaders: formal and informal. A surgeon might allow the entire surgical team to participate in developing a plan for a surgical procedure. Vassiliou, Marius, David S. Alberts, and Jonathan R. Agre (2015). She also holds three degrees including communications, business, educational leadership/technology. They think most employees are only out for themselves and their sole interest in the job is to earn money. Thus, Salancik and Pfeffer reason that power and thus leadership flow to those individuals who have the ability to help an organization or group [overcome its critical contingencies]. [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. This style is appropriate when followers have valuable opinions and ideas, but one person needs to coordinate the execution of the ideas. The answer often is that a leaders social influence is the source of his power. Much like a bomb, assumptions are a dangerous thing to make - just the slightest little mistake and you can end up blowing yourself up! It mightseemthat the optimal approach to human resource management would lie somewhere between these extremes. People under Theory X believe that employees see their work as a burden and are lazy, so they tend to micromanage and control their performance and efforts. This led them to use rewards and punishment as their primary means to motivate employees. Proc. In order to achieve the most efficient production, a combination of both theories may be appropriate. He was one of the most impactful, popular writers in the management field and is credited for modern management thinking. 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. The theories attempt to show how a manager's perception of his team affects the . A study of 3,600 managers from 14 countries reveals that most of them held assumptions about human nature that could best be classified as Theory X.37 Even though managers might publicly endorse the merits of participatory management, most of them doubted their workers capacities to exercise self-direction and self-control and to contribute creatively.38, Contemplating the central role of problem-solving in management and leadership, Jan P. Muczyk and Bernard C. Reimann of Cleveland State University offer an interesting perspective on four different leadership styles (see Exhibit 13.7) that revolve around decision-making and implementation processes.39. Evidence suggests that managers from different parts of the global community commonly hold the same view. The control and coercion involved in this style of management could lead to employee frustration, de-motivate employees and damage relationships within the organization. Two reasons: (1) high-quality products and (2) low prices. Theory X managers and supervisors are sometimes called micro-managers. 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. Leaders hold a unique position in their groups, exercising influence and providing direction. This is a participative management style that gives rise to a more collaborative work environment, whereas theory X leads to micromanaging. As we have noted, leadership is the exercise of influence over those who depend on one another for attaining a mutual goal in a group setting. In this capacity, leadership can be seen as a differentiated role and the nucleus of group activity. In this situation, one would expect employees to dislike their work, avoid responsibility, have no interest in organizational goals, resist change, etc.creating, in effect, a self-fulfilling prophecy. Theory X. The modern manager knows how to distribute responsibility, instill trust in their employees, and motivate team members to deliver their best work and ideas. The benefits of Theory Z, Ouchi claimed, would bereduced employee turnover, increasedcommitment, improvedmorale and job satisfaction, and drastic increases in productivity. [4], McGregor also believed that self-actualization was the highest level of reward for employees. If you are redistributing all or part of this book in a print format, Some employees may take advantage of this freedom and not meet their work objectives. The company usesmonetary rewards and benefits to satisfy employees lower-level needs. In fact, most work groups contain at least one informal leader. They can be motivated internally to complete their tasks and not always need supervision or micromanaging. Henry comes to work regularly on time and his performance has been consistent. Self-actualization and creativity were given importance in Theory Y. People under Theory Y believe. This suggests that a leader may use and employ power in a variety of ways. and you must attribute OpenStax. Theory Y managers appeal to a higher level of motivation on Maslows famous Hierarchy of Needs, capitalizing on the human need for esteem and self-actualization. Theory X refers to an authoritarian style and Theory Y refers to a participative/interactive style of managing employees. 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. In fact, when proper motivations and rewards are in place, employees are not only willing but purposely driven to seek out responsibility and challenges on their own. "Mission Command and Agile C2." He wrote on leadership as well. People will be self-directed and creative to meet their work and organizational objectives if they are committed to them. Grace Hopper, retired U.S. Navy admiral, draws a distinction between leading and managing: You dont manage people, you manage things. 17 chapters | Drawing on Maslows hierarchy of needs, McGregor argues that a need, once satisfied, no longer motivates. most workers seek out more resonsibilityTheory Y managers prefera. Employees are initially obedient, but eventually dissatisfied and even rebellious, driving down productivity and achieving contradictory outcomes, further reinforcing the belief that workers are lazy and have to be externally motivated. The OpenStax name, OpenStax logo, OpenStax book covers, OpenStax CNX name, and OpenStax CNX logo You may, however, find that you naturally favor one over the other. Why not assume the best in people? At Quad/Graphics, president Harry V. Quadracci is a permissive democrat because he encourages all Quad employees to play a major role in decision-making and execution as they manage their teams as independent profit centers. a Theory X Manager typically believes their staff: dislike their work / are lazy cannot be trusted need to be closely supervised / micro-managed dislike or avoid responsibility have no inherent incentive or desire to work lack ambition work only for pay or because they have to have to be driven by rewards or punishment Work can be as natural as play if the conditions are favorable. Theory X managers are likely to believe that: A.the average person dislikes work and will seek to avoid it when possible. "C2 Re-Envisioned: the Future of the Enterprise." B.most employees know more about their job than the boss. In general, Theory X style managers believe their employees are less intelligent, lazier, and work solely for a sustainable income. Both sides seek to satisfy some personal pleasures and needs. Theory X represents a negative view of human nature that assumes individuals generally dislike work, are irresponsible, and require close supervision to do their jobs. Leadership is also about having a vision and communicating that vision to others in such a way that it provides meaning for the follower.32 Language, ritual, drama, myths, symbolic constructions, and stories are some of the tools leaders use to capture the attention of their followers to be to evoke emotion and to manage the meaning of the task (challenges) facing the group.33 These tools help the leader influence the attitudes, motivation, and behavior of their followers. 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. Sherri has taught college business and communication courses. Theory X and Theory Y thinking and leadership are not strictly an American phenomenon. Sometimes these powers lead to follower performance and satisfaction, yet they also sometimes fail. D.job satisfaction is primarily related to higher order needs. [4] McGregor's perspective places the responsibility for performance on managers as well as subordinates.[5]. In the 1970s, 1980s, and 1990s, McGregor's conceptualization of Theory X and Theory Y were often used as the basis for discussions of management style, employee involvement, and worker motivation. Are inherently lazy, lack ambition and prefer to be directed on what to do rather than assume responsibility on their own. People need more than monetary rewards or the threat of punishment to do their jobs. In fact, when the proper motivations and rewards are in place, employees are not only willing but purposely driven to seek out responsibility and challenges on their own. [8] This approach can potentially yield a hostile, minimally cooperative workforce and resentment towards management. [6] Managers who believe employees operate in this manner are more likely to use rewards or punishments as motivation. To McGregor, a steady supply of motivation seemed more likely to occur underTheory Y management. He explained this concept in his book "The Human side of Enterprise". People will use work to satisfy their lower needs and seek to satisfy their higher needs during their leisure time. This website helped me pass! This could lead to more turnover and absenteeism. Theory Y is based on positive assumptions regarding the typical worker. Theory X managers are likely to believe that: A.the average person dislikes work and will seek to avoid it when possible. Gerald Salancik and Jeffrey Pfeffer observe that power to influence others flows to those individuals who possess the critical and scarce resources (often knowledge and expertise) that a group needs to overcome a major problem.24 They note that the dominant coalition and leadership in American corporations during the 1950s was among engineers, because organizations were engaged in competition based on product design. 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. Back in the 1950s and 60s, MIT School of Management student Douglas McGregor published a theory on different types of workers. 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.