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Douglas McGregor –Theory X and Theory Y. Douglas McGregor, an American social psychologist, proposed his famous X-Y theory in his 1960 book 'The Human Side Of Enterprise'.
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Douglas McGregor –Theory X and TheoryY • DouglasMcGregor,anAmericansocialpsychologist,proposedhis • famousX-Ytheoryinhis1960book'TheHumanSideOfEnterprise'. • Theory X and theory Y are still referred to commonly in the field of management and motivation, and whilst more recent studies have questionedtherigidityofthemodel,McGregor'sX-YTheoryremainsa validbasicprinciplefromwhichtodeveloppositivemanagementstyle andtechniques.
TheoryXassumesautocraticmanagement.Thetheorysaysthatmanagersunder Theory X assume that most people are naturally lazy and need to be controlled andsupervised.Theythinkthatpeopleneedtobemotivatedallthetime.Oneof thenotionsthatTheoryXmanagershavetowardtheirpeopleisthattheyarenot verysmartandtheyneedgoodencouragementtodogoodwork. • Thisstyleofmanagementassumesthatworkers: • Dislikeworking. • Avoidresponsibilityandneedtobedirected. • Havetobecontrolled,forced,andthreatenedtodeliverwhat'sneeded. • Needtobesupervisedateverystep,withcontrolsputinplace. • Needtobeenticedtoproduceresults;otherwisetheyhavenoambitionor incentive towork. Theory X (AUTHORITARIANSTYLE)
SomeofthemostnoticeablecharacteristicsofTheoryX • managersareautocraticbehavior. • The managers areresults-driven. • Theyareconcernedwiththecompletionofagiventask. • Theyissuedeadlinesforthecompletionofwork. Characteristics of Theory Xmanagers
Themanagerslacktolerance.Theyareveryintolerantin • nature. • MostofthetheoryXmanagersdistancesthemselvesfrom workers.Theydonothavemuchofanattachmenttowith theiremployees. Characteristics of Theory Xmanagers
TheoryXmanagersissuethreatsandwarningstomake • people follow theirinstructions. • Theydonotparticipateintheprocessofteambuilding. • Theyareunconcernedaboutthewelfareormoraleofthe employees. Characteristics of Theory Xmanagers
Theyareone-waycommunicatorsandpoorlisteners. • Theywithholdrewardsandsuppresspayand remunerationlevels. Characteristics of Theory Xmanagers
Theyarepooratdelegatingresponsibilitiesandthink • giving orders is delegatingresponsibility. • Theyholdontoresponsibilitybutshiftaccountabilityto subordinates. Characteristics of Theory Xmanagers
Conversely, Theory Y assumes democratic management. The theory says that managers under Theory Y assume that most people like to work. The managers assume that they have self-control. They assume that people can motivatethemselvesandwanttodoagoodjob.Oneoftheimportantnotions thatTheoryYmanagershaveabouttheirpeopleisthattheyaresmart. • Thisstyleofmanagementassumesthatworkers: • Takeresponsibilityandaremotivatedtofulfilthegoalstheyaregiven. • Seekandacceptresponsibilityanddonotneedmuchdirection. • Considerworkasanaturalpartoflifeandsolveworkproblems imaginatively. • This more participative management style tends to be more widely applicable. In Y-Type organizations, people at lower levels of the organizationareinvolved indecisionmakingandhavemoreresponsibility. Theory Y (PARTICIPATIVESTYLE)
Theory Y type of managers are quite the oppositeof TheoryX. • Even Theory Ymanagers are results-oriented, after all, but they areconcerned with not just the completion of work,buttheyassisttheirsubordinatesindoingthings. Characteristics of Theory Ymanagers
Theory Y managers are very tolerant in nature. They toleratemistakesandtrytorectifythembyexplaining whatshouldnotbedoneandwhatneedstobedone. • Theory Y managers do not maintain a distance from their employees.Theybelieve in team effort andmovealongprovidingmotivationandencouragement to theteam. Characteristics of Theory Ymanagers
They do not threatenemployees for non-compliance. Instead, they explain the norms and complianceissuesandmakethemrealizethatinstructions areforthebettermentofwork. Characteristics of Theory Ymanagers
Theyactivelyparticipateintheteambuildingprocessand makesurethateveryemployeeintheteamismotivated to become a betterperformer. • They are highlyconcerned about the welfare and moraleofemployees.Theytrytoidentify thegrievancesof theiremployeesand resolvethem,ifpossible. Characteristics of Theory Ymanagers
Theyaregoodcommunicatorsandgoodlistenersandtake • suggestionsandconstructivecriticismseriously. • Theydonotwithholdanyrewardsandcompensationsto threatentheemployees.Theyalsopraisetheiremployeesfor their goodwork. Characteristics of Theory Ymanagers
Theyareverygoodatdelegatingresponsibilities.Theynot onlygiveordersbutalsogivedirectionsandsuggestionsto complete thework. • Theyholdontoresponsibilityandalsoaccountabilityto themselves. Characteristics of Theory Ymanagers Prepared By SumitMehta
WilliamG.Ouchi(born 1943)isanAmericanprofessorandauthorinthe field of business management. Ouchi first came to prominence for his studiesofthedifferencesbetweenJapaneseandAmericancompaniesand managementstyles. Hisfirstbookin1981summarizedhisobservations. TheoryZ:HowAmericanManagementCanMeettheJapaneseChallenge and was a New York Times best-seller for over five months. It currently ranksastheseventhmostwidelyheldbookofthe12milliontitlesheldin 4000 U.S.libraries. Hissecondbook,TheMFormSociety:HowAmericanTeamworkCan Recapture the Competitive Edge, examined various techniques implementing thatapproach. THEORY Z- WilliamOuchi
OuchiproposedthataTheoryZmanagementapproachcouldleadto; • Greater employee jobsatisfaction • Lowerratesofabsenteeismandturnover • Higher qualityproducts • BetteroverallfinancialperformanceforU.S.firms. 18
12strategiestotransformatypicalAmericancompany,namedas typeAcompanytotypeZcompany. • Skepticshavetobeallowedtoexist. • Audit itsphilosophy. • Definedesiredphilosophyandbeabletoinvolvecompanyleaders. • Createstructureandincentiveinthecompany. • Develop interpersonalskills. • Testthemselvesandthesystem. • Stabilizeemployment. • Slow evaluation andpromotion. • Broadenthepeople’scareerpaths. • Working into thelower level. • Employeeparticipationisallowedindecisionmaking. • Createasenseoffamilybetweeneveryone. 19
TheoryZessentiallyadvocatesacombinationofallthat'sbest about theory Y and modern Japanese management, which placesalargeamountoffreedomandtrustwithworkers,and assumes that workers have a strong loyalty and interest in team-working and the organisation. Theory Z also places more reliance on the attitude and responsibilities of the workers, whereas McGregor's XY theory is mainly focused on management and motivation from the manager's and organisation'sperspective. THEORYZ (JAPANESE MANAGEMENTSTYLE) 20
McGregor’s Theory X- (Authoritarian ManagementStyle) • –producesstrictandcontrollingsupervision • McGregor’s Theory Y- (Participative ManagementStyle) • –associatedandparticipativesupervision • WilliamOuchi’sTheoryZ-(JapaneseManagementStyle) • –managersmustbemoresupportiveandtrustingoftheir employees, in order to receive the benefit of increased participationinthedecisionsof thecompany. GENERALIZATION: 23
Maslow’s Hierarchy of NeedsTheory • McGregor’s Theory x and Theory y • Herzberg’s Two factortheory • WillaimOuchi’s Theory z • ERGTheory:- Existence, Relatedness,Growth • McClelland’s Theory ofNeeds • Goal Setting Theory ofMotivation • Reinforcement Theory ofMotivation • Equity Theory ofMotivation • Expectancy Theory ofMotivation Motivational theories 24