Presented By, Arun Antony MBA {Travel and Tourism} 1st Semester Roll No: 6

MCGREGORS THEORY X AND Y Douglas Mcgregor wote the book “The human side of enterprise” in 1960. He examined individuals behaviour at work. From this he formulated two models of

management based on hierarchy into lower-order needs (Theory X) and higher-order needs (Theory Y).

These theories are based on human behaviour in management.

It concludes dual aspects of human being. He suggested that management could use

either set of needs to motivate.

THEORY X Theory X assumes that employees are naturally

unmotivated and dislike working, and this encourages an authoritarian style of management. According to this view, management must actively intervene to get things done.

According to Theory X, managers believe workers

Dislike workLack ambitionAre irresponsibleAre resistant to changePrefer to be led

THEORY X CONT.. Avoid responsibility and need to be directed. Have to be controlled, forced, and threatened

to deliver what's needed. Need to be supervised at every step, with

controls put in place. Need to be enticed to produce results;

otherwise they have no ambition or motivation to work.

The people at work have no authority to suggest or object anything.

Cant be trusted to make a decision. Are only interested in MONEY. Must be closely watched.

MANAGERS……

Assumes that people are lazy and don’t like work and are motivated by money.

Therefore people have to be forced to work. Managers need to be controlling and motivate by

threats and fear. The leadership style used will be autocratic. Worker morale may low under this type of leader. Eg. Hitler

THEORY YTheory Y shows a participation style of management that is de-centralized. It assumes that employees are happy to work, are self-motivated and creative, and enjoy working with greater responsibility.

According to Theory Y, managers believe workers

Are willing to work Are capable of self control Accept responsibility Are imaginative and creative Self-directedEnjoy their work Will work hard to get rewards Want to see new things happening Will work independently Are motivated by things other than money

THEORY Y

Take responsibility and are motivated to fulfill the goals they are given.

Consider work as a natural part of life and solve work problems imaginatively. Assumes that people seek fulfilment through work and are willing to work hard.

In Y-Type organizations, people at lower levels of the organization are involved in decision making and have more responsibility.

MANAGERS……

Seek and accept responsibility and do not need much direction.

The leadership style used is democratic or free-rein.

The management motivate by encouragement and inclusion.

Workers do not need to be controlled. This management style tends to be more

widely appropriate.

COMPARING THEORY X AND THEORY Y

Theory X

Work is natural

Capable of self-direction

Seek responsibility

Can make good decisions

Work avoiding

Need to control

Avoid responsibility

Workers seek security

Theory Y

ASSUMPTIONS OF THEORY X VERSUS THEORY Y MANAGERS

EMPLOYEES: Dislike/avoid work Require coercion Shun responsibility Have little ambition Seek security

EMPLOYEES: Naturally expend effort Will exercise self-discretion Accept and seek responsibility Have creative capacity Have high level needs

TM 2-3

Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 1998

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.

COMPARING THEORY X AND THEORY Y Management Style and Control In a Theory X organization, management is authoritarian, and centralized control is retained.

Theory Y, the management style involves employees in decision making, but retains power to implement decisions.

COMPARING THEORY X AND THEORY Y 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.

COMPARING THEORY X AND THEORY Y Rewards Theory X organizations work on a ‘carrot and stick’ basis, and performance is part of the overall mechanisms of control.

In Theory Y organizations, appriciation is also regular and important, but is usually a separate mechanism from organizational controls. Theory Y organizations also give employees frequent opportunities for promotion.

COMPARING THEORY X AND THEORY Y

Application Although Theory X management style is widely accepted as poor 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 benefit from Theory Y principles to encourage knowledge sharing and continuous improvement.

CONCLUSION

Understanding your assumptions about employees motivation can help you learn to manage more effectively.

Thank You for Listening!