Consequently, the only way that employees can attempt to satisfy higher level needs at work is to seek more compensation, so it is quite predictable that they will focus on monetary rewards. It can create conditions such that he is encouraged and enabled to seek such satisfactions for himself, or it can thwart him by failing to create those conditions. Theory X and Theory Y , introduced in the book and are known for management and human motivation. Leadership style Autocratic Democratic Direction Constant direction is required. They think most employees are only out for themselves and their sole interest in the job is to earn money. Further, the employees are not indolent by nature, but they behave so, because of experience. Theory Y therefore assumes that control, rewards and punishments are not the only ways to stimulate people.
Lest we be accused of the same error, we are saying only that all people have a need to feel competent; in this one way they are similar. This theory states that managers evaluate the workplace and choose their leadership style based upon both internal and external conditions presented. For a more detailed description of this survey, see John J. McGregor's ideas significantly relate to modern understanding of the Psychological Contract, which provides many ways to appreciate the unhelpful nature of X-Theory leadership, and the useful constructive beneficial nature of Y-Theory leadership. Formal characteristics Beginning with differences in formal characteristics, we found that both the Akron and Stockton organizations fit their respective tasks much better than did their less successful counterparts. Theory X is based on a pessimistic view of employee motivation and behavior, while Theory Y is based on an optimistic view of employee motivation and behavior. In doing so, Employees are expected to exercise a large degree of internal motivation.
For many enterprises, given the new needs of younger employees for more autonomy, and the rapid rates of social and technological change, it may well be that the more participative approach is the most appropriate. The result of this line of thought is that Theory X managers naturally adopt a controlling style based on the threat of punishment. That is, each approach is effective in some cases but not in others. But we also found that each of these effective units had a better fit with its particular task than did its less effective counterpart. However, employees can be most productive when their work goals align with their higher-level needs. The performance of work is discretionary and provides a sense of fulfilment, if meaningful.
Theory Y managers gravitate towards relating to the worker on a more personal level, as opposed to a more conductive and teaching-based relationship. The strength of the contingency approach we have outlined is that it begins to provide a way of thinking about this complexity, rather than ignoring it. Take responsibility and are motivated to fulfill the goals they are given. In other words, the creativity, resourcefulness and innovative potentiality of the employees can be utilized to solve organizational problems Many people interpret Theory Y as a positive set of assumptions about workers. Such an organization need not be coercive or punitive. The Carmel laboratory had a somewhat top-heavy distribution of influence, perceptions of high structure, and a more directive type of supervision.
Theory x and theory y are still referred to commonly in the field of management and motivation, and whilst more recent studies have questioned the rigidity of the model, Mcgregor's X-Y Theory remains a valid basic principle from which to develop positive management style and techniques. The Human Side of Enterprise by Douglas McGregor, McGraw-Hill, 1960 2. Conclusion Though these theories are very basic in nature, they provide a platform for future generations of management theorists and practitioners to understand the changing dynamics of human behavior. Theory Y The higher-level needs of esteem and self-actualization are ongoing needs that, for most people, are never completely satisfied. An uneasy look at performance appraisal. This web site is operated by the Internet Center for Management and Business Administration, Inc.
Beyond this point, the two theories of management diverge. Please reference authorship and copyright of material used, including link s to Businessballs. Definition of Theory Y Theory Y is a modern approach on motivation, put forward by McGregor. In instances where the thinking process is important and the employee is expected to act on their own responsibility, managers prefer to opt for Theory Y. Their employees are accustomed to coercion and control and will therefore not make any effort at all or bear responsibility.
Theory-X assumptions are: 1 most people dislike and will avoid it to the extent possible, therefore 2 they must be continually coerced, controlled, and threatened with to get the work done, and that 3 they have little or no , prefer to avoid , and choose above everything else. While our knowledge in this area is still growing, we are certain that any adequate theory of motivation and organization will have to take account of the contingent relationship between task, organization, and people. This is normally the role of the Change Manager; to implement the change that no-one asked for or wants. Even with our limited knowledge, however, there are indications that people will gradually gravitate into organizations that fit their particular personalities. Differences between the two container plants are significant at.
The use of this material is free for self-development, developing others, research, and organizational improvement. In arguing for an approach which emphasizes the fit among task, organization, and people, we are putting to rest the question of which organizational approach—the classical or the participative—is best. Under Theory X the firm relies on money and benefits to satisfy employees' lower needs, and once those needs are satisfied the source of motivation is lost. The managers influenced by Theory X believe that everything must end in blaming someone. If individuals are given freedom, certainly there is room for increased productivity. Both of these theories begin with the premise that management's role is to assemble the factors of production, including people, for the economic benefit of the firm.
Perception of structure: The people in the Akron plant perceived a great deal of structure, with their behavior tightly controlled and defined. In its place we are raising a new question: What organizational approach is most appropriate given the task and the people involved? Recommended readings White Paper: by Gen B K Bhatia Courtesy Empxtrack — Human Capital and Talent Management Suite. As a result, the only way that employees can attempt to meet higher-level needs at work is to seek more compensation, so, predictably, they focus on monetary rewards. Because each performed very different tasks the former a relatively certain manufacturing task and the latter a relatively uncertain research task , we expected, as brought out earlier, that there would have to be major differences between them in organizational characteristics if they were to perform effectively. McGregor recognized that some people may not have reached the level of maturity assumed by Theory Y and may initially need tighter controls that can be relaxed as the employee develops. Major findings The principal findings of the survey are best highlighted by contrasting the highly successful Akron plant and the high-performing Stockton laboratory. According to Theory X, people would work hard in such a setting only because they were coerced to do so.
Many researchers gave explanation on how to find answer who you are in different perspectives. It would appear that the optimal approach to human resource management would lie somewhere between these extremes. In contrast, in theory, Y, the assumption is that employees do not need much supervision for the completion of the task and also in the accomplishment of organisational objectives. Theory Y also assumes that employees are capable of creativity, ingenuity, and self-direction. They believe that the satisfaction of doing a good job is a strong motivation in itself. Description of Theory Y Management influenced by this theory assumes that employees are ambitious, self-motivated and anxious to accept greater responsibility and exercise self-control, self-direction, autonomy and empowerment. A New Approach Recent work by a number of students of management and organization may help to answer such questions.