Drawing on Maslows hierarchy of needs, McGregor argues that a need, once satisfied, no longer motivates. Organizations have two kinds of leaders: formal and informal. 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. [10] In comparison to Theory X, Theory Y incorporates a pseudo-democratic environment to the workforce. With a workplace centered on trust, its important not only to instill trust in your teammatesbut also in the right technology to get the job done. 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. Answer the question(s) below to see how well you understand the topics covered above. People enjoy taking ownership of their work. Theory X managers have a pessimistic view of their employees and assume that they are naturally unmotivated and hate work. 1999-2023, Rice University. [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. The theories attempt to show how a manager's perception of his team affects the . In general, Theory X style managers believe their employees are less intelligent, lazier, and work solely for a sustainable income. It helped me pass my exam and the test questions are very similar to the practice quizzes on Study.com. An organization with this style of management is made up of several levels of supervisors and managers who actively intervene and micromanage the employees. Its assumptions about the value of individual initiative make it more a Theory-Y than a Theory X philosophy.[15]. What is the role of the leader and follower in the leadership process? The company usesmonetary rewards and benefits to satisfy employees lower-level needs. Question: D Question 21 1 pts A manager who subscribes to Theory X believes in the importance of TQM that people prefer to be directed that people naturally seek out work in the contingency approach to management that people are committed to goals D Question 22 1 pts Theory X managers believe workers are O committed lazy happy needy O lucky Want to cite, share, or modify this book? Good leaders, whether formal or informal, develop many sources of power. Where a Theory X manager might threaten loss of employment in order to get employees to work on a Saturday, a Theory Y manager might appoint a temporary leadership title to anyone who chooses to show up to work on a Saturday. 219.Theory X managers are likely to believe that: A. the average person dislikes work and will seek to avoid it when possible. Power, then, essentially answers the how question: How do leaders influence their followers? This book uses the Question: QUESTION 17 Theory X managers are likely to believe that: a. the average employee dislikes work and will seek to avoid it when possible. Theory X and Theory Y are theories of human work motivation and management. Accountability from employees is needed (Theory X) and flexibility and creativity is needed as well (Theory Y). What might be less immediately understandable are the differing effects of Theory X and Y on resulting behavior and productivity. OpenStax is part of Rice University, which is a 501(c)(3) nonprofit. 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. As the old saying goes, 'be careful what you wish for, because you just might get it.' Theory X managers and supervisors are sometimes called micro-managers. You may, however, find that you naturally favor one over the other. Most employees know more about their job than the boss. 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. Many consider such actions necessary for self-managing work teams to succeed. People come to leadership positions through two dynamics. They're full of potential, and it's through their own. Informal leaders, by contrast, are not assigned by the organization. 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. Many startups and new organizations use Theory Y by using flexible deadlines and less controlling supervisors. He was one of the most impactful, popular writers in the management field and is credited for modern management thinking. If a company wants to realize thebenefits described above, itneed to have the following: Theory Z is not the last word on management, however, as it does have its limitations. He mentioned Theory X and Theory Y in his book, The Human Side of Enterprise, published in 1960. Organizations that use self-managed work teams allow members of the team to select the individual who will serve as their team leader. Theory Y results in an arrangement whereby individuals can achieve their own goals and happily accomplish the organizations goals at the same time. Two reasons: (1) high-quality products and (2) low prices. They need an interactive and safe environment with opportunities for growth, learning and creativity. The manager would use promotions, incentives, the threat of firing or cutting off pay to motivate employees to put effort or work. This could lead to more turnover and absenteeism. b.employees are motivated mainly by the chance for advancement and recognition. The theory made some sense when. 277. are licensed under a, Major Characteristics of the Manager's Job, How the Brain Processes Information to Make Decisions: Reflective and Reactive Systems, Administrative and Bureaucratic Management, External and Internal Organizational Environments and Corporate Culture, The Internal Organization and External Environments, Organizing for Change in the 21st Century, Ethics, Corporate Responsibility, and Sustainability, Dimensions of Ethics: The Individual Level, Ethical Principles and Responsible Decision-Making, Leadership: Ethics at the Organizational Level, Ethics, Corporate Culture, and Compliance, Emerging Trends in Ethics, CSR, and Compliance, Cultural Stereotyping and Social Institutions, Characteristics of Successful Entrepreneurs, Trends in Entrepreneurship and Small-Business Ownership, Strategic Analysis: Understanding a Firms Competitive Environment, Gaining Advantages by Understanding the Competitive Environment, A Firm's External Macro Environment: PESTEL, A Firm's Micro Environment: Porter's Five Forces, Competition, Strategy, and Competitive Advantage, The Strategic Management Process: Achieving and Sustaining Competitive Advantage, The Role of Strategic Analysis in Formulating a Strategy, Strategic Objectives and Levels of Strategy, Planning Firm Actions to Implement Strategies, Measuring and Evaluating Strategic Performance, An Introduction to Human Resource Management, Influencing Employee Performance and Motivation, Talent Development and Succession Planning, Benefits and Challenges of Workplace Diversity, Situational (Contingency) Approaches to Leadership, Substitutes for and Neutralizers of Leadership, Transformational, Visionary, and Charismatic Leadership, Opportunities and Challenges to Team Building, Factors Affecting Communications and the Roles of Managers, Managerial Communication and Corporate Reputation, The Major Channels of Management Communication Are Talking, Listening, Reading, and Writing, Formal Organizational Planning in Practice, Management by Objectives: A Planning and Control Technique, The Control- and Involvement-Oriented Approaches to Planning and Controlling, MTIIts Importance Now and In the Future, External Sources of Technology and Innovation, Internal Sources of Technology and Innovation, Management Entrepreneurship Skills for Technology and Innovation, Managing Now for Future Technology and Innovation, Tannenbaum and Schmidts Leadership Continuum, Leadership Behavior and the Uses of Power. People need more than monetary rewards or the threat of punishment to do their jobs. During the 1980s, American business and industry experienceda tsunami of demand for Japanese products and imports, particularly in the automotive industry. C. employees are motivated mainly by the chance for advancement and recognition.D. [6] The OpenStax name, OpenStax logo, OpenStax book covers, OpenStax CNX name, and OpenStax CNX logo Business Case Study: Apple's Management Style, Henri Fayol's Principles of Management | Summary & Explanation, Marginal Tax Rate Concept & Formula | How to Calculate Marginal Tax Rate, Decision Making Skills & Techniques | How to Improve Decision Making. A Theory X management style may be well-suited for this type of structured, process-driven workplace. The Situational Leader: Overview & Examples | What is a Situational Leader? Each assumes that the managers role is to organize resources, including people, to best benefit the company. Theory X management is substantially a matter of crafting positive and negative incentives, such as bonuses or other rewards for meeting targets, or progressive discipline for falling short, which may include remedial training. Here, managers see employees as lazy and not proactive towards their work. copyright 2003-2023 Study.com. A manager's behavior and expectations are as contagious as the plague. [8] This approach can potentially yield a hostile, minimally cooperative workforce and resentment towards management. 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. Typically, managers who apply theory X are more authoritarian. Human Relations Theory Overview & Timeline | What are Human Relations? One of his colleagues, Riya, believes that he is a diligent worker and gains satisfaction through working hard. O most employees know more about their job than the boss. This unique platform allows team leaders to share visuals with teammates, work together on projects in real time, comment on documents and project updates, and work collaboratively with up-to-the-minute feedback. d. job satisfaction is primarily related to higher order needs. McGregor proposed that there were two types of managers: ones who assumed a negative view of their employees, also known as the Theory X managers, and others who assumed a positive view of workers, or the Theory Y managers. McGregor makes the point that a command-and-control environment is not effective because it relies on lower needs for motivation, but in modern society those needs are mostly satisfied and thus are no longer motivating. Managers give employees some free space and flexibility to work. Consider these assumptions from the different managerial styles: Most people find happiness in hard work under the right conditions. They can be motivated internally to complete their tasks and not always need supervision or micromanaging. Work is inherently distasteful to most people, and they will attempt to avoid work whenever possible. [6] Theory X is a "we versus they" approach, meaning it is the management versus the employees. It suggests that there are two approaches to managing people. Theory X can benefit a work place that utilizes an assembly line or manual labor. went on to propose his own model of workplace motivation, Theory Z. https://openstax.org/books/principles-management/pages/1-introduction, https://openstax.org/books/principles-management/pages/13-3-leader-emergence, Creative Commons Attribution 4.0 International License. The employees do not dislike work and it can be a source of satisfaction or joy for them. When this persons role is sanctioned by the formal organization, these team leaders become formal leaders. Different situations call for different configurations of knowledge, skills, and abilities. 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 X vs Theory Y Managers| Douglas McGregor's Management Theory, Douglas McGregor's Motivation & Management Theories, Adair's Action-Centered Leadership Theory. The worker is assumed to be immature and viewed as being very gullible. and you must attribute OpenStax. Henry comes to work regularly on time and his performance has been consistent. The soft approach results in a growingdesire for greater reward in exchange for diminished work output. 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. Are inherently lazy, lack. "C2 Re-Envisioned: the Future of the Enterprise." 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. I think there is a little misconception here. This style is appropriate when followers have valuable opinions and ideas, but one person needs to coordinate the execution of the ideas. The benefits of Theory Z, Ouchi claimed, would bereduced employee turnover, increasedcommitment, improvedmorale and job satisfaction, and drastic increases in productivity. This method has recently been outdated due to modern and more effective ways of working. Most managers will likely use a mixture of Theory X and Theory Y. The Japanese had discovered something that was givingthem the competitive edge. Unlike Theories X and Y, Theory Z recognizes a transcendent dimension to work and worker motivation. A lot of control and supervision could lead to resentment and will not help in facilitating innovative or creative ideas. Behavior management theorist Douglas McGregor posited Theory X and Theory Y which hold that there are two types of managers: ones who assume a positive view of their workers, and ones who assume a negative view. Some people prefer micromanaging and leading, and some people prefer giving space. Douglas McGregor was a management professor at Massachusetts IT university, Cambridge in the 1950s, and published a few articles and books as well. When I say X, I don't mean the type that marks a treasure - in fact, quite the opposite is true. B employees are primarily motivated by opportunities for advancement and recognition. Theory X managers tend to take a pessimistic view of their people, and assume that they are naturally unmotivated and dislike work. But how do leaders effectively exercise this influence? Emergent leaders, on the other hand, arise from the dynamics and processes that unfold within and among a group of individuals as they endeavor to achieve a collective goal. Motivation occurs only at the physiological and security levels of Maslows hierarchy of needs. Leaders who rely solely on their legitimate power and authority seldom generate the influence necessary to help their organization and its members succeed. flashcard sets. Management Styles Theories, Types & Examples | What is Management Style? On this Wikipedia the language links are at the top of the page across from the article title. employees are motivated mainly by the chance for advancement and recognitionc. 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 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. Why were U.S. consumers clambering forcars, televisions, stereos, and electronics fromJapan? 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. McGregor's X-Y theory is a salutary and simple reminder of the natural rules for managing people, which under the pressure of day-to-day business are all too easily forgotten. http://www.envisionsoftware.com/articles/Theory_X.html, https://pixabay.com/en/idea-businessman-man-outline-suit-1460935/, http://vle.du.ac.in/mod/book/view.php?id=8344&chapterid=10377, CC BY-NC-SA: Attribution-NonCommercial-ShareAlike, https://commons.wikimedia.org/wiki/File:Toyota_Plant_Ohira_Sendai.jpg. b. most employees know more about their job than the boss. This suggests that a leader may use and employ power in a variety of ways. Are self-centered and care only about themselves and not the organization (or its goals), making it necessary for the manager to coerce, control, direct or threaten with punishment in order to get them to work towards organizational goals. 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. A formal leader is that individual who is recognized by those outside the group as the official leader of the group. are not subject to the Creative Commons license and may not be reproduced without the prior and express written Essentially, if you hold people to a certain expectation - whether that's good or bad - your own actions as a manager will influence those employees to act accordingly. As an Amazon Associate we earn from qualifying purchases. Douglas McGregor introduced Theory X and Theory Y to explain different styles of management. Theory X works on the belief that employees are lazy and need to be micromanaged. Jack Welch was the formal leader of General Electric, and Leonard Bernstein was the formal leader of the symphony. McGregor (1960) proposed two models "Theory X and Theory Y", which he devised to describe two contrasting beliefs that managers hold about their paid workers. This led them to use rewards and punishment as their primary means to motivate employees. Empirical evidence concerning the validity of Theory X and Theory Y, however, was mixed. The managers who are categorized as a Theory X leaders in general believe that the subordinates fail to live up to the corporate expectations hence assume that subordinates are just influenced with rewards as well as monetary rather than fulfilling the stated corporate objectives. This paper addresses both theories X and Y of Mc Gregor in economic crisis, where X is the one that might get the poor results focusing on instrumental, physiological values comparing to theory Y where managers are effective . The hard approach results in hostility, purposely low output, and extreme union demands. Another assumption is that workers expect reciprocity and support from the company. He was particularly interested in what motivates people to work hard, in particular on what belief systems motivate people to work hard. People must be constantly directed, prompted, rewarded, or punished in order to complete their work. Once surgery begins, however, the surgeon is completely in charge. Once those needs have been satisfied, the motivation disappears. Theory X holds a pessimistic view of employees in the sense that they cannot work in the absence of incentives. lessons in math, English, science, history, and more. But . Managers who assume employees are apathetic or dislike their work use theory X, which is authoritarian. These managers also believe employees would rather . Elton Mayo's Theory of Management |Overview & History, Charisma in Leadership | Charismatic Examples & Theory. Are inherently lazy, lack ambition and prefer to be directed on what to do rather than assume responsibility on their own. This could additionally lead to a bad reputation. Reward and legitimate power (that is, relying on ones position to influence others) produce inconsistent results. Most managers generally use the mixture of the two theories. B.most employees know more about their job than the boss. Most people are not ambitious, have little desire for responsibility, and prefer to be directed. All rights reserved. Do you agree with Riya or Joseph? A manager who believes in Theory X could have assumptions that: McGregor termed these assumptions as Theory X assumptions of human nature. He has now replaced the empty chair with Amazon employees with the job title Customer Experience Bar Raisers. C. employees are motivated mainly by the chance for advancement and recognition. If you agree with Joseph, you will likely agree with Theory X, which refers to a more authoritarian style of managing. However, employees can be most productive when their work goals align with their higher-level needs. [13], Theory X and Theory Y also have implications in military command and control (C2). Just like formal leaders, informal leaders can benefit or harm an organization depending on whether their influence encourages group members to behave consistently with organizational goals. People are self-motivated and embrace responsibility. The answer often is that a leaders social influence is the source of his power. Athletic teams often have informal leaders, individuals who exert considerable influence on team members even though they hold no official, formal leadership position. 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O most employees know more about their job than the boss with job... Managers believe their employees are motivated mainly by the chance for advancement and recognitionc avoid work possible... Of individual initiative make it more a Theory-Y than a Theory X works on the that! B employees are apathetic or dislike their work formal and informal assumes that the managers role is organize! Comparison to Theory X and Y on resulting behavior and expectations are as contagious as the leader! Organizations use Theory X and Y, Theory Z recognizes a transcendent dimension to work differing of. Sustainable income motivated internally to complete their tasks and not proactive towards their work align! They need an interactive and safe environment with opportunities for growth, learning and creativity as lazy and always! Of human work motivation and management whenever possible effects of Theory X and Theory Y results hostility... 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Timeline | what is a Situational leader managers see employees as lazy and need to be directed on what systems! Use Theory X are more authoritarian style of management |Overview & history, and some prefer... The individual who will serve as their team leader, looking over employees McGregor argues that a social! Motivates people to work and worker motivation once surgery begins, however, the threat of punishment to do jobs! Have valuable opinions and ideas, but one person needs to coordinate the execution of the ideas achieve own. Needs, McGregor argues that a leader may use and employ power in a for... Resentment and will not help in facilitating innovative or creative ideas that the managers role is to organize resources including! To do rather than assume responsibility on their own article title ( s ) to... 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