Theory X and Theory Y : Which one is yours ?

Douglas McGregor, a management professor, first talked about two theories called Theory X and Theory Y. He identified an approach of creating an environment within which employees are motivated via authoritative, direction and control or integration and self-control, and called it Theory X and Theory Y.

Theory X 

With Theory X assumptions, management's role is to coerce and control employees.

o        People have an inherent dislike for work and will avoid it whenever possible.

o        People must be coerced, controlled, directed, or threatened with punishment in order to get them to achieve the organizational objectives.

o        People prefer to be directed, do not want responsibility, and have little or no ambition.

o        People seek security above all else.

Theory Y 

With Theory Y assumptions, management's role is to develop the potential in employees and help them to release that potential towards common goals.

o        Work is as natural as play and rest.

o        People will exercise self-direction if they are committed to the objectives (they are NOT lazy).

o        Commitment to objectives is a function of the rewards associated with their achievement.

o        People learn to accept and seek responsibility.

o        Creativity, ingenuity, and imagination are widely distributed among the population. People are capable of using these abilities to solve an organizational problem.

o        People have potential.

Comparing Theory X and Theory Y

      Motivation
Theory X assumes that people dislike work; they want to avoid it and do not want to take responsibility. Theory Y assumes that people are self-motivated, and thrive on responsibility.

Management Style and Control

      In a Theory X organization, management is authoritarian, and centralized control is retained, whilst in Theory Y, the management style is participative: Management involves employees in decision making, but retains power to implement decisions.

·     Work Organization
Theory X employees tend to have specialized and often repetitive work. In Theory Y, the work tends to be organized around wider areas of skill or knowledge; Employees are also encouraged to develop expertise and make suggestions and improvements.·      

      Rewards and Appraisals
Theory X organizations work on a ‘carrot and stick’ basis, and performance appraisal is part of the overall mechanisms of control and remuneration. In Theory Y organizations, appraisal is also regular and important, but is usually a separate mechanism from organizational controls. Theory Y organizations also give employees frequent opportunities for promotion.

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      Application 
Although Theory X management style is widely accepted as inferior to others, it has its place in large scale production operation and unskilled production-line work. Many of the principles of Theory Y are widely adopted by types of organization that value and encourage participation. Theory Y-style management is suited to knowledge work and professional services. Professional service organizations naturally evolve Theory Y-type practices by the nature of their work; Even highly structure knowledge work, such as call center operations, can benefits from Theory Y principles to encourage knowledge sharing and continuous improvement.

Theory X and Y in tower Building exercise

In the task of Tower building exercise manager could have handled the situation in two ways:

  

      Theory X in Tower Building exercise:   the manager believes that the builder is lazy.   He tell  the person building the tower, that he is not building it high enough and that he has given up too early.

Theory Y in Tower Building exercise:  he could have believed that the person building the tower liked his work and needed no extra motivation. Here the manager believes that the builder is not lazy

      In our scenario, the student believed that the person building the tower was not lazy and thereby displayed Theory Y form of management. Eventually, the task was completed. A job well done and learning for a lifetime received!!