McGregor's Theory X and Theory Y

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:

• Dislike working.
• Avoid responsibility
• Need constant supervision
• Need to be directed.
• Need to be controlled
• Need to be forced to deliver
• Need controls put in place
• Need to be induced to produce results
• Need incentives to work.
• Cannot delegate

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:

• Like working
• Takes responsibility
• Are self-motivated
• Are self-driven to accomplish organizational goals
• Seek greater responsibility
• Are self-directed
• Need fewer or no controls
• Does not need much direction
• Are creative
• Solve work problems imaginatively

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.

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.