McGregor created Theory X and Theory Y of human work motivation and explained two styles of management known as authoritarian (Theory X) and participative (Theory Y). Theory X management assumes most people will attempt to avoid work whereas Theory Y managers trust their people to take ownership of their work.
About McGregor:
Douglas Murray McGregor (1906 – 1 October 1964) was a Management professor at the MIT Sloan School of Management and president of Antioch College from 1948 to 1954. McGregor was born in Detroit. He earned a B.E. (Mechanical) from Rangoon Institute of Technology, an A.B. from Wayne State University in 1932, and then earned an M.A. and Ph.D. in psychology from Harvard University in 1944 and 1955 respectively. His 1960 book “The Human Side of Enterprise” had a profound influence on education practices. In the book The Human Side of Enterprise, McGregor identified an approach of creating an environment within which employees are motivated via authoritative, direction and control or integration and self-control, which he called theory X and theory Y, respectively.
McGregor (1960) categorized leadership styles into two broad categories having two different beliefs and assumptions about subordinates. He called these Theory X and Theory Y.
What are Theory X and Theory Y?
This theory is an attempt to understand what actually motivates employees to go to work each day and whether people like to be independent and work hard themselves or they always need a leader to control and guide them. Whether people get great satisfaction from their work and they are proud of it or view it as a burden, and they just work as they need to work to survive. This theory tries to study this question of motivation to identify successful approaches to management.
Social psychologist Douglas McGregor developed two divergent theories on human motivation and called them as The X Theory and the Theory Y. One theory assumes that most people like working and the other contrasts that most dislike working. The management style of any manager will be strongly influenced by his beliefs and assumptions about what he thinks are the drivers of motivation for the team. If the manager believes that they dislike work, he might tend to adopt authoritarian style of management whereas the leader who assumes that employees like working will tend to adopt democratic style.
What is Theory X?
Theory X assumes that employees are naturally unmotivated and dislike working. As a result the Theory X style of leaders believes that most people dislike work and will avoid it wherever possible. Such leaders feel they themselves are a small but important group, who want to lead and take responsibility, but a large majority of people want to be directed and avoid responsibility. Therefore, this style of leadership exercises strong controls and direction and wherever necessary punish people if they do not do the work and this encourages an authoritarian style of management. If people do the work as desired, they may even get monetary or other rewards. According to this view, management must actively intervene to get things done.
This style of management assumes that workers:
What is Theory Y?
It assumes that employees are self-motivated, like working, self-motivated and take pride in getting greater responsibility. As a result, Theory Y leaders assume that people will work hard and assume responsibility if they can satisfy their personal needs and the objectives or goals of their organization. Such leaders do not sharply distinguish between the leaders and the followers in contrast to Theory X style. They feel that people control themselves within rather than being controlled by others from outside such as a leader or a manager or a supervisor. Theory Y explicates a participative style of management that is de-centralized. In Y-Type organizations, people at lower levels of the organization are involved in decision making and have more responsibility.
This style of management assumes that workers:
Comparing Theory X and Theory Y:
An effective leader needs to examine carefully their own ideas about the motivation and behavior of subordinates and others, as well as the situation, before adopting a particular style of leadership. Given below is a table explaining the contrast between Theory X and Theory Y.
Attribute |
Theory X |
Theory Y |
Motivation |
Dislike Work |
Self-Motivated |
Responsibility |
Avoid Responsibility |
Enjoy Greater Responsibility |
Management |
Authoritarian |
Democratic / Participative |
Control |
Centralized |
De-Centralized |
Decision Making |
Management Decides |
Jointly Decision Making Happens |
Skills |
Repetitive Work |
Specialized Work |
Training |
Skills Driven |
Competency Driven |
Awards |
Based on Performance |
Based on Performance and Values |
Delegation |
Not Possible |
Delegation Happens |
Delivery |
Forced to Perform |
Self-driven Delivery |
Change |
Resist Change |
Adapts to Change |
Direction |
Formal Directions |
Self-Driven |
Implications of Theory X and Theory Y:
Theory X and Theory Y relates to Maslow's hierarchy of needs in how human behavior and motivation is the main priority in the workplace in order to maximize output. In relations to Theory Y the organization is trying to create the most symbiotic relationship between the managers and workers which relates to Maslow's hierarchy of needs of Self Actualization and Esteem. For Self Actualization the manager needs to promote the optimum workplace through morality, creativity, spontaneity, problem solving, lack of prejudice, and acceptance of facts. It can relate to esteem when the manager is trying to promote self-esteem, confidence, achievement, respect of others, and respect by others.
Very few organizations use Theory X techniques. Theory X encourages use of tight control and supervision and takes a pessimistic view of employees. It implies that employees are reluctant to organizational changes. Thus, it does not encourage innovation and encourages an authoritarian style of management. Many organizations use Theory Y techniques. Theory Y encourages decentralization of authority, teamwork and participative decision making in an organization. It tries to harmonize and match employees’ needs and aspirations with organizational needs and aspirations.
Have you ever resonated that there seem to be as many different ways to lead people as there have been great leaders? When we recall the success of Mahatma Gandhi, Nelson Mandela, Abraham Lincoln, Napoleon Bonaparte to Steve Jobs and Jack Welch, we also notice that they all used different approaches that were suitable to their specific situations and circumstances. Over the last century, researchers and psychologists have developed simple ways to describe the “Styles of leadership” and in this section, we will explore these commonly known leadership styles.
Contingency Theories of Leadership
Contingency theories of leadership focus on both the leader's persona as well as the situation/environment in which that leader operates. These theories consider the context of leadership which means whether or not the leadership style suits a particular situation and states that a leader can be effective in one circumstance and a failure in another one. A leader will be most effective when he applies the right leadership style to a given situation and environment around him. Contingent leaders are flexible and adaptable.
The Systemic Approach to Leadership
The systemic approach to leadership looks at the organization as a whole and focuses on the understanding of the organization as a system. Moving to systems thinking demand managers to view organizations as organic systems. Leaders are also part of this complex system which is constantly undergoing change and evolving. The leaders need to manage the relations and networks within these systems by acting with systemic awareness.
Behavioral Theories of Leadership
Behavioral Theory of leadership is a big leap from Trait Theory, as it was developed scientifically by conducting behaviour focused studies. The theory emphasizes that leadership capability can be learned, rather than being inherent. This theory is based on the principle that a leader's behaviors can be conditioned in a manner that one can have a specific response to specific stimuli.
Five Factors Model (FFM) also known as Five-Factor Personality Model is based on five broad personality traits which are extraversion, neuroticism, openness to experience, agreeableness, and conscientiousness represented by acronym OCEAN, these traits are often referred to as the “Big Five”.
Leadership traits refer to personal qualities that define effective leaders. Here are the major leadership qualities that can make someone a good leader. Five key traits that are common in leaders can be learned and sharpened with time.
Servant Leadership is a recent revolutionary theory of leadership that focuses on leaders achieving authority rather than power. A servant leader considers the needs of others and tries to serve the followers by becoming a servant first. Servant leadership is leading with a desire to better serve others.
Role theory is a concept in sociology and the role theory of leadership borrows these concepts to explain how people adapt to specific organizational and leadership roles. How the leaders and followers in an organizational context define their own roles, define the roles of others, how people act in their roles and how people expect people to act in their roles within the organization.
The style approach emphasizes that one style of leadership behaviour cannot be effective in all situations. Earlier theories treated leadership exclusively as a personality trait and behavior approach has widened the scope by including the behaviors of leaders and what they do in various situations. Explore how you can benefit from the concepts to understand your own behaviors and what are some of the leadership tools based on the style approach to leadership.
Theory Z also called the "Japanese Management" style is a leadership theory of human motivation focused on organizational behavior, communication, and development. It assumes that employees want to enter into long term partnerships with their employers and peers. Offering stable jobs with an associated focus on the well-being of employees results in increased employee loyalty to the company.
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