TheoryX , Y , Z

Douglas McGregor, an American social psychologist, proposed his famous X-Y theory in his 1960 book 'The Human Side Of Enterprise'. 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. Douglas McGregor

THEORY Xand YBy McGregor

THEORY X(AUTHORITARIAN STYLE)

McGregor believed that of the two, Theory X represented the more widely held assumptions about people in organizations, and that these assumptions guided not only in styles of supervision but such things as organization structures , procedures , and programs in organizations as well. Theory X tended to produce strict and controlling types of supervision

whereas . . .

THEORY Y(PARTICIPATIVE STYLE)

Theory Y tended to be associated with more developmental and participative supervisory styles. McGregor further considered these assumptions about people to be “self fulfilling” in the sense that they led to practices which would tend to produce the very behaviors among those managed which would confirm either set of assumptions

THEORY ZBy William Ouchi

William G. Ouchi (born 1943) is an American professor and author in the field of business management.Ouchi first came to prominence for his studies of the differences between Japanese and American companies and management styles. His first book in 1981 summarized his observations. Theory Z: How American Management Can Meet the Japanese Challenge and was a New York Times best-seller for over five months. It currently ranks as the seventh most widely held book of the 12 million titles held in 4000 U.S. libraries. His second book, The M Form Society: How American Teamwork Can Recapture the Competitive Edge, examined various techniques implementing that approach.

THEORY Z(JAPANESE MANAGEMENT STYLE)

Theory Z essentially advocates a combination of all that's best about theory Y and modern Japanese management, which places a large amount of freedom and trust with workers, and assumes that workers have a strong loyalty and interest in team-working and the organisation. Theory Z also places more reliance on the attitude and responsibilities of the workers, whereas Mcgregor's XY theory is mainly focused on management and motivation from the manager's and organisation's perspective.

ManagementConcept

Douglas McGregor (Theory X & Y)

William Ouchi(Theory Z)

Motivation Tends to categorise people as one type or another: either being unwilling or unmotivated to work, or being self motivated towards work. Threats and disciplinary action are thought to be used more effectively in this situation, although monetary rewards can also be a prime motivator to make Theory X workers produce more.

Believes that people are innately self motivated to not only do their work, but also are loyal towards the company, and want to make the company succeed.

Leadership Theory X leaders would be more authoritarian, while Theory Y leaders would be more participative. But in both cases it seems that the managers would still retain a great deal of control.

Theory Z managers would have to have a great deal of trust that their workers could make sound decisions. Therefore, this type of leader is more likely to act as "coach", and let the workers make most of the decisions.

Comparison & Contrast of Management Theorists

ManagementConcept

Douglas McGregor (Theory X & Y)

William Ouchi(Theory Z)

Power & Authority

As mentioned above, McGregor's managers, in both cases, would seem to keep most of the power and authority. In the case of Theory Y, the manager would take suggestions from workers, but would keep the power to implement the decision.

The manager's ability to exercise power and authority comes from the worker's trusting management to take care of them, and allow them to do their jobs. The workers have a great deal of input and weight in the decision making process.

Conflict This type of manager might be more likely to exercise a great deal of "Power" based conflict resolution style, especially with the Theory X workers. Theory Y workers might be given the opportunity to exert "Negotiating" strategies to solve their own differences.

Conflict in the Theory Z arena would involve a great deal of discussion, collaboration, and negotiation. The workers would be the ones solving the conflicts, while the managers would play more of a "third party arbitrator" role.

Comparison & Contrast of Management Theorists

M c G re g o r ’s T h e o r y X ( A u t h o r i t a r i a n M a n a g e m e n t S t y l e )– p ro d u c e s s t r i c t a n d c o n t ro l l i n g s u p e r v i s i o n

GENERALIZATION:

M c G re g o r ’s T h e o r y Y ( Pa r ti c i p a ti ve M a n a g e m e n t S t y l e )– a s s o c i a t e d a n d p a r ti c i p a ti v e s u p e r v i s i o n

W i l l i a m O u c h i ’s T h e o r y Z ( J a p a n e s e M a n a g e m e n t S t y l e )– m a n a g e rs m u s t b e m o re s u p p o r ti ve a n d

t r u s ti n g o f t h e i r e m p l o ye e s , i n o rd e r t o re c e i v e t h e b e n e fi t o f i n c re a s e d p a r ti c i p a ti o n i n t h e d e c i s i o n s o f t h e c o m p a ny.

As is clearly seen by comparing and contrasti ng these two theorists, assumpti ons about people can be more clearly understood in order for managers and workers to make for a more producti ve environment in the work place.

THANK YOU & GODBLESS !!

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