The Theory Y manager generally believes employees want responsibility and will perform up to expectations if given clear direction and goals. The manager provides incentives and appraisals, but they are given as acknowledgement and appreciation of the employees performances, and not to control them. Social or (interpersonal) influence is ones ability to effect a change in the motivation, attitudes, and/or behaviors of others. In the 1950s, Tannenbaum and Schmidt created a continuum (see Exhibit 13.6) along which leadership styles range from authoritarian to extremely high levels of worker freedom.34 Subsequent to Tannenbaum and Schmidts work, researchers adapted the continuum by categorizing leader power styles as autocratic (boss-centered), participative (workers are consulted and involved), or free-rein (members are assigned the work and decide on their own how to do it; the leader relinquishes the active assumption of the role of leadership).35. In this situation, one would expect employees to dislike their work, avoid responsibility, have no interest in organizational goals, resist change, etc.creating, in effect, a self-fulfilling prophecy. Two reasons: (1) high-quality products and (2) low prices. Most people can handle responsibility because creativity and ingenuity are common in the population. Work is inherently distasteful to most people, and they will attempt to avoid work whenever possible. [4] McGregor's perspective places the responsibility for performance on managers as well as subordinates.[5]. Want to cite, share, or modify this book? This is a positive view of the nature of workers. The employees could prefer responsibility and show willingness, depending on their traits. "Mission Command and Agile C2." In general, Theory X style managers believe their employees are less intelligent, lazier, and work solely for a sustainable income. They're full of potential, and it's through their own. job satisfaction is primarily related to higher-order needs. This approach is usually taken by managers working in older companies and firms. B. most workers know more about their job than the boss. Theory X is a common management method that focuses on supervision and strict monitoring of employees. Douglas McGregor was a management professor at Massachusetts IT university, Cambridge in the 1950s, and published a few articles and books as well. Theory X and Y: An overview. A surgeon might allow the entire surgical team to participate in developing a plan for a surgical procedure. Theory X, although outdated, is still used in larger firms, wherein a higher number of people are employed and deadlines are to be met. Theory X and Theory Y Theory X and Theory Y represent two sets of assumptions about human nature and human behavior that are relevant to the practice of management. The answer often is that a leaders social influence is the source of his power. They can be motivated internally to complete their tasks and not always need supervision or micromanaging. 219.Theory X managers are likely to believe that: A. the average person dislikes work and will seek to avoid it when possible. People come to leadership positions through two dynamics. Dec 12, 2022 OpenStax. It follows the traditional route of direction and control. Theory X and Theory Y thinking and leadership are not strictly an American phenomenon. Self-actualization and creativity were given importance in Theory Y. 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. consent of Rice University. Theory X managers and supervisors are sometimes called micro-managers. Theory X and Theory Y are two contrasting models of how your work force can be motivated. Although Theory Y encompasses creativity and discussion, it does have limitations. The managers influenced by Theory X believe that everything must end in blaming someone. Advertising, Public relations, Marketing and Consumer Behavior, Psychology, Behavioral And Social Science. You may, however, find that you naturally favor one over the other. O most employees know more about their job than the boss. Ouchis Theory Z makes certain assumptions about workers. Management believes employees' work is based on their own self-interest. Good leaders, whether formal or informal, develop many sources of power. These managers also believe employees would rather . He would try to constantly control the employees, leading to resentment and exhaustion in the employees, leading to a turnover. The power base in many organizations shifted to marketing as competition became a game of advertising aimed at differentiating products in the consumers mind. They are inherently lazy, lack ambition and prefer to be directed on what to do rather than assume responsibility on their own. Theory Y managers believe employees would be motivated to meet goals in the absence of organizational controls, given favorable conditions. His ideas gained most of their momentum in the 1960s, when the American and Western workforce was at a crucial transition from factory work of the Industrial Revolution to more collaborative technology-centered teamwork, aided no doubt by the Womens Labor Movement and the dawn of computing technology. Jack Welch was the formal leader of General Electric, and Leonard Bernstein was the formal leader of the symphony. If you continue to use this site we will assume that you are happy with it. During the 1980s, American business and industry experienceda tsunami of demand for Japanese products and imports, particularly in the automotive industry. Since the employee is not responsible to work willingly, he or she must be motivated with the rewards and incentives, prompted, punished, coerced or forced into working. X managers is an impediment to employee morale and productivity X managers believe it is his/her job to structure the work and energize, even coerce (threaten with punishment) the. 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. It is important to recognize that the traits possessed by certain individuals contribute significantly to their emergence as leaders. Many startups and new organizations use Theory Y by using flexible deadlines and less controlling supervisors. These credits give the individual a status that allows him to influence the direction that the group takes as it works to achieve its goals.27. According to the Theory of X and Y, there are 2 categories of managers . According to McGregor, there are two opposing approaches to implementing Theory X: the hard approach and the soft approach. Sometimes these powers lead to follower performance and satisfaction, yet they also sometimes fail. McGregors Theory X and Theory Y posits two different sets of attitudes about the individual as an organizational member.36 Theory X and Y thinking gives rise to two different styles of leadership. They are self-centered and care only about themselves and not the organization or its goals, making it necessary for a manager to coerce, control, direct or threaten with punishment in order to get them to work towards organizational goals. As a result, the only way that employees can attempt to meethigher-level needs at work is to seek more compensation, so, predictably, they focus on monetary rewards. On this Wikipedia the language links are at the top of the page across from the article title. An organization with this style of management encourages participation and values individuals' thoughts and goals. Known as an influential figure in management theory, organizational communication, and organizational studies, Douglas McGregor was a professor at Massachusetts Institute of Technology, where he was a vocal advocate of the human relations approach. A group often turns to the member who possesses the knowledge, skills, and abilities that the group requires to achieve its goals.25 People surrender their power to individuals whom they believe will make meaningful contributions to attaining group goals.26 The individual to whom power is surrendered is often a member of the group who is in good standing. Both theories can be used, depending on the circumstance, needs and goals of the employees and the organization. His main ideas broke down into two options, Theory X and Theory Y. Lucidchart makes it easy to share processes, information, and ideas with a team from a single centralized location. Managers let employees use self-direction and self-control to do their jobs instead of coercing or forcing them. When this persons role is sanctioned by the formal organization, these team leaders become formal leaders. It can be difficult for organizations and employees to make life-time employment commitments. We refer to this person as the designated leader (in this instance the designated and formal leader are the same person). Here, leaders act as facilitators, process consultants, network builders, conflict managers, inspirationalists, coaches, teachers/mentors, and cheerleaders.40 Such is the role of Ralph Stayer, founder, owner, and CEO of Johnsonville Foods. In a strict environment with little autonomy, workers were indeed unhappy and lacking ambition. This management style assumes that the typical worker has little ambition, avoids responsibility, and is individual-goal oriented. A manager dealing with a group of experts would likely use this theory and give them freedom and space to work. It follows the idea that there is no single way to organize a company or make decisions. 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. This managerial style is more effective when used in a workforce that is not essentially motivated to perform. flashcard sets. Theory X managers believe all actions should be traceable to the individual responsible. 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 According to McGregor, Theory X management assumes the following: Work is inherently distasteful to most people, and they will attempt to avoid work whenever possible. [6] Managers are always looking for mistakes from employees, because they do not trust their work. Sherri has taught college business and communication courses. Are inherently lazy, lack. Theory Y leaders are much more likely to adopt involvement-oriented approaches to leadership and organically designed organizations for their leadership group. In actual practice, most managers today practice a combination of Theory X and Theory Y styles of management. Situational Leadership Theory & Styles | What is Situational Leadership? Theory X. According to Theory Z, people want tomaintain a work-life balance, and they value a working environment in which things like family, culture, and traditions are considered to be just as important as the work itself. As soon as that need is satisfied, the employees have no additional motivation for coming to work. They do not always need coercion, incentives or force to complete their work. Management use of Theory X and Theory Y can affect employee motivation and productivity in different ways, and managers may choose to implement strategies from both theories into their practices. In order to achieve the most efficient production, a combination of both theories may be appropriate. Increasingly, leaders in organizations will be those who best sell their ideas on how to complete a projectpersuasiveness and inspiration are important ingredients in the leadership equation, especially in high-involvement organizations.22. This theory states that managers evaluate the workplace and choose their leadership style based upon both internal and external conditions presented. The Theory X manager assumes employees hate the idea of having to go to work and do so only to earn a paycheck and the security it offers. Consider these assumptions from the different managerial styles: Most people find happiness in hard work under the right conditions. Human Relations Theory Overview & Timeline | What are Human Relations? This could additionally lead to a bad reputation. Management believes employees' work is based on their own self-interest. The theory X and Y leadership model was developed 50 years ago and has been validated by modern research. It is also used in unskilled labor organizations or production firms. Peopleare motivated by money and fears about their job security. A lot of control and supervision could lead to resentment and will not help in facilitating innovative or creative ideas. Practically all managers act as formal leaders as part of their assigned role. [8] As a result, Theory Y followers may have a better relationship with their boss, creating a healthier atmosphere in the workplace. 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. People under Theory Y believe. The theories attempt to show how a manager's perception of his team affects the . I would definitely recommend Study.com to my colleagues. Also sharing power is the directive democrat, who encourages participative decision-making but retains the power to direct team members in the execution of their roles. Hence, both theories used in moderation are key to good organization. job satisfaction is primarily related to higher order needs. Occupational inequality is the unequal treatment of people based on gender, sexuality, height, weight, accent, or race in the workplace. B employees are primarily motivated by opportunities for advancement and recognition. We recommend using a Theory X holds a pessimistic view of employees in the sense that they cannot work in the absence of incentives. While these contrasting management styles might be easily recognizable in todays technology-driven world, they were novel thoughts at one point, developed through research and observation by a workplace thought leader. Work in organizations that are managed like this can . Besides conducting the orchestra, he created a vision for the symphony. While money may not be the most effective way to self-fulfillment, it may be the only way available. An optimal managerial style would help cultivate worker creativity, insight, meaning and moral excellence. Our mission is to improve educational access and learning for everyone. They are not inherently irresponsible or lazy. lessons in math, English, science, history, and more. [4] This allows the employee to design, construct, and publish their work in a timely manner in co-ordinance to their workload and projects. But there are times when management is less about leadership and more about the staunch enforcement of rules and micromanagement of production. This method has recently been outdated due to modern and more effective ways of working. They also dislike change and tend to resist it at all costs. People are motivated when they find value in their contributions and see an opportunity to realize their own potential. A variation on this theme is the concept of situational leadership, which advocates using different styles of management in different circumstances. As the old saying goes, 'be careful what you wish for, because you just might get it.' Abraham Maslow and McGregor both gave popular theories on motivation. A manager who believes in Theory Y could have assumptions that: Too much freedom could lead to no accountability and people could lose direction and focus. While Theory X managers may be suited for some process-driven organizations, a more practical management style today is that of a Theory Y thinker. Theory X refers to an authoritarian style and Theory Y refers to a participative/interactive style of managing employees. About 1015 years ago, power and leadership once again shifted, this time to people with finance and legal backgrounds, because the critical contingencies facing many organizations were mergers, acquisitions, hostile takeovers, and creative financing. All rights reserved. and you must attribute OpenStax. This is a negative view of the nature of workers. When I say X, I don't mean the type that marks a treasure - in fact, quite the opposite is true. Theory Z stresses the need to helpworkers become generalists, rather than specialists. These managers view their employees as one of the most valuable assets to the company, driving the internal workings of the corporation. 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 . Theory X can benefit a work place that utilizes an assembly line or manual labor. The modern manager knows how to distribute responsibility, instill trust in their employees, and motivate team members to deliver their best work and ideas. Most people are not ambitious, have little desire for responsibility, and prefer to be directed. And the approach to and requirements of leadership are changing with it. Market Segmentation Types & Examples | What is Market Segmentation? Once you complete this lesson you'll be able to understand the two different types of managers as theorized by Douglas McGregor. 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