THEORY X

This is derived from Taylor’s scientific school of management. Theory X managers believe in technique such as piece-rate and close-supervision.

It is likely Theory X is self-fulfilling i.e. if you fail to trust your workers, they will lose interest in their work, making the manager feel he/se was correct in their Theory X beliefs.

THEORY Y

Stems from Mayo’s human relations and Maslow’s work in human needs. Theory Y focuses on social and psychological needs of the workers. A Theory Y manager is likely to believe that:

†Workers seek satisfaction not just pay from employment.

†Workers possess knowledge, creativity and imagination.

†Workers are committed.

†Poor worker performance is due to poor management.

†Employees wish to contribute to decision making.

If leaders adopt Theory Y, the business implications are:

Greater delegation.

Improved training and communication.

De-layering.

Leadership and Management StylesTASK:- Looking at your own experiences, write down 5 qualities required to be a good

leader.

Answers may have included: Competence, Self-belief, Energy, Adaptability, Charisma, Communication skills etc.

Tannenbaum and Schmidt’s Continuum of Leadership

Use of authority by the manager

Area of freedom for subordinates

TELLS- Makes decision and announces it

SELLS- Makes decision, then explains it (via a briefing for example)

CONSULTS- Gets ideas and then makes decision (via consultative committees)

SHARES- Defines limits and lets the group decide

DELEGATES- Allows subordinates to function independently

AUTOCRATIC

(Authoritarian)

DEMOCRATIC

(Persuasive)

DEMOCRATIC

(Consultative)

LAISSEZ-FAIRE

Question: How does McGregor’s Theory X and Y fit in with the different types of leadership style?

Factors affecting leadership styles

1. The job

2. Tradition

3. Type of labour force

4. Size of the firm

5. Personality

6. Time limits