Slow promotions, group decision-making, and life-time employment may not be a good fit with companies operating in cultural, social, and economic environments where those work practicesare not the norm. Are self-centered and care only about themselves and not the organization (or its goals), making it necessary for the manager to coerce, control, direct or threaten with punishment in order to get them to work towards organizational goals. Discover each theory and the respective qualities of each, as well as how self-fulfilling prophecies come into play for managers. Self-determination Theory Self-determination theory suggests that people are motivated to grow and change by three Which of the following is a behavior that would most likely b Theory X can benefit a work place that utilizes an assembly line or manual labor. Managers let employees use self-direction and self-control to do their jobs instead of coercing or forcing them. The benefits of Theory Z, Ouchi claimed, would bereduced employee turnover, increasedcommitment, improvedmorale and job satisfaction, and drastic increases in productivity. An organization with this style of management is made up of several levels of supervisors and managers who actively intervene and micromanage the employees. Use this quiz to check your understanding and decide whether to (1) study the previous section further or (2) move on to the next section. 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. Theory X managers are likely to believe that: Answer 17) a. the average employee dislikes work and will seek to avoid it when possible. Although born and educated in America, Ouchi was of Japanese descent and spent a lot of time in Japan studying the countrys approachto workplace teamwork and participative management. 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. In the process of building their power base, effective leaders have discovered that the use of coercive power tends to dilute the effectiveness of other powers, while the development and use of referent power tends to magnify the effectiveness of other forms of power. Try refreshing the page, or contact customer support. Each assumes that the managers role is to organize resources, including people, to best benefit the company. [8] As a result, Theory Y followers may have a better relationship with their boss, creating a healthier atmosphere in the workplace. The hard approach to motivation relies on coercion, implicit threats, micromanagement, and tight controls essentially an environment of command and control. Many startups and new organizations use Theory Y by using flexible deadlines and less controlling supervisors. The Theory X leader assumes that the average individual dislikes work and is incapable of exercising adequate self-direction and self-control. The manager provides incentives and appraisals, but they are given as acknowledgement and appreciation of the employees performances, and not to control them. In fact, when the proper motivations and rewards are in place, employees are not only willing but purposely driven to seek out responsibility and challenges on their own. are licensed under a, Major Characteristics of the Manager's Job, How the Brain Processes Information to Make Decisions: Reflective and Reactive Systems, Administrative and Bureaucratic Management, External and Internal Organizational Environments and Corporate Culture, The Internal Organization and External Environments, Organizing for Change in the 21st Century, Ethics, Corporate Responsibility, and Sustainability, Dimensions of Ethics: The Individual Level, Ethical Principles and Responsible Decision-Making, Leadership: Ethics at the Organizational Level, Ethics, Corporate Culture, and Compliance, Emerging Trends in Ethics, CSR, and Compliance, Cultural Stereotyping and Social Institutions, Characteristics of Successful Entrepreneurs, Trends in Entrepreneurship and Small-Business Ownership, Strategic Analysis: Understanding a Firms Competitive Environment, Gaining Advantages by Understanding the Competitive Environment, A Firm's External Macro Environment: PESTEL, A Firm's Micro Environment: Porter's Five Forces, Competition, Strategy, and Competitive Advantage, The Strategic Management Process: Achieving and Sustaining Competitive Advantage, The Role of Strategic Analysis in Formulating a Strategy, Strategic Objectives and Levels of Strategy, Planning Firm Actions to Implement Strategies, Measuring and Evaluating Strategic Performance, An Introduction to Human Resource Management, Influencing Employee Performance and Motivation, Talent Development and Succession Planning, Benefits and Challenges of Workplace Diversity, Situational (Contingency) Approaches to Leadership, Substitutes for and Neutralizers of Leadership, Transformational, Visionary, and Charismatic Leadership, Opportunities and Challenges to Team Building, Factors Affecting Communications and the Roles of Managers, Managerial Communication and Corporate Reputation, The Major Channels of Management Communication Are Talking, Listening, Reading, and Writing, Formal Organizational Planning in Practice, Management by Objectives: A Planning and Control Technique, The Control- and Involvement-Oriented Approaches to Planning and Controlling, MTIIts Importance Now and In the Future, External Sources of Technology and Innovation, Internal Sources of Technology and Innovation, Management Entrepreneurship Skills for Technology and Innovation, Managing Now for Future Technology and Innovation, Tannenbaum and Schmidts Leadership Continuum, Leadership Behavior and the Uses of Power. Once you complete this lesson you'll be able to understand the two different types of managers as theorized by Douglas McGregor. Instead, McGregor feels that an approach located in the middle would be the most effective implementation of Theory X.[7]. As we have noted, leadership is the exercise of influence over those who depend on one another for attaining a mutual goal in a group setting. 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. C.employees are motivated mainly by the chance for advancement and recognition.D.job satisfaction is primarily related to higher-order needs. Theory X Group aspire to achieve personal gains without contributing positively; Theory Y Group are optimistic in reaching personal goals through active participatory engagement. Lucidchart makes it easy to share processes, information, and ideas with a team from a single centralized location. Theory Y managers assume employees are internally motivated, enjoy their job, and work to better themselves without a direct reward in return. When employees rise to a higher level of management, it is expected that they will use Theory Z to bring up, train, and develop other employees in a similar fashion. An individual who was self- motivated was best left alone in a. The theories attempt to show how a manager's perception of his team affects the . Theory Y managers are likely to believe that employees are motivated by the value of their contribution. Managers in newer organizations use this theory as now, people want more than monetary rewards and control. Leadership is also about having a vision and communicating that vision to others in such a way that it provides meaning for the follower.32 Language, ritual, drama, myths, symbolic constructions, and stories are some of the tools leaders use to capture the attention of their followers to be to evoke emotion and to manage the meaning of the task (challenges) facing the group.33 These tools help the leader influence the attitudes, motivation, and behavior of their followers. Theory Y leaders are much more likely to adopt involvement-oriented approaches to leadership and organically designed organizations for their leadership group. This book uses the People must be constantly directed, prompted, rewarded, or punished in order to complete their work. In the 1960s, social psychologist Douglas McGregor developed Theory X and Theory Y to explain how managers' beliefs about what motivates their employees can influence their management style. job satisfaction is primarily related to higher-order needs. Management believes employees' work is based on their own self-interest. [14] Mission Command, for example, is a command philosophy to which many modern military establishments aspire, and which involves individual judgment and action within the overall framework of the commander's intent. employees are motivated mainly by the chance for advancement and recognitionc. The permissive autocrat mixes his or her use of power by retaining decision-making power but permitting organizational members to exercise discretion when executing those decisions. Leaders hold a unique position in their groups, exercising influence and providing direction. He mentioned Theory X and Theory Y in his book, The Human Side of Enterprise, published in 1960. This ensures work stays efficient, productive, and in-line with company standards.[9]. The manager allows for collaborative decision-making and amicable relations within the organization or firm. Theory X is a common management method that focuses on supervision and strict monitoring of employees. A crisis could also demand more control and thus, this theory can come in handy. Elton Mayo's Theory of Management |Overview & History, Charisma in Leadership | Charismatic Examples & Theory. Managers tend to micromanage and control employees performance and efforts. Answer the question(s) below to see how well you understand the topics covered above. Individuals attracted to high-involvement organizations, however, want to make their own decisions, expect their leaders to allow them to do so, and are willing to accept and act on this responsibility. Why were U.S. consumers clambering forcars, televisions, stereos, and electronics fromJapan? It would be beneficial to use both theories in moderation to ensure productivity and discipline in an organization. This is because; Theory X reduces the people to 'clogs in machine' and is more likely to de-motivate people in the long-run. Theory X managers are likely to believe that: a. the average employee dislikes work and will seek to avoid it when possible. Theory Y managers believe employees would be motivated to meet goals in the absence of organizational controls, given favorable conditions. The manager would use promotions, incentives, the threat of firing or cutting off pay to motivate employees to put effort or work. Many consider such actions necessary for self-managing work teams to succeed. As soon as that need is satisfied, the employees have no additional motivation for coming to work. However, neither of these extremes is optimal. went on to propose his own model of workplace motivation, Theory Z. Often, the formal leader is appointed by the organization to serve in a formal capacity as an agent of the organization. Because employees have historically been given a flat exchange of time and energy for income, workplace incentives have often been rooted in a fear of loss of employment, in earning potential from extra productivity, or in acquiescing to managerial dominance for promotion. Both sides seek to satisfy some personal pleasures and needs. Hi, All other trademarks and copyrights are the property of their respective owners. Another assumption is that workers expect reciprocity and support from the company. Emergent leaders, on the other hand, arise from the dynamics and processes that unfold within and among a group of individuals as they endeavor to achieve a collective goal. Most people can handle responsibility because creativity and ingenuity are common in the population. Reward and legitimate power (that is, relying on ones position to influence others) produce inconsistent results. [6] Managers who believe employees operate in this manner are more likely to use rewards or punishments as motivation. As a member, you'll also get unlimited access to over 84,000 Theory X managers are likely to believe that employees are lazy, fear-motivated, and in need of constant direction. Why not assume the best in people? Thus, Salancik and Pfeffer reason that power and thus leadership flow to those individuals who have the ability to help an organization or group [overcome its critical contingencies]. Theory X managers are likely to believe that employees are lazy, fear-motivated, and in need of constant direction. However, beyond this commonality, theattitudes and assumptionsthey embody are quite different. Besides conducting the orchestra, he created a vision for the symphony. This style of leadership is seen as appropriate when circumstances require quick decisions and organizational members are new, inexperienced, or underqualified. Theory X. Micromanagement is not looked at positively in todays scenario, leading to Theory Y being the most productive way of management. Work is inherently distasteful to most people, and they will attempt to avoid work whenever possible. Advertising, Public relations, Marketing and Consumer Behavior, Psychology, Behavioral And Social Science. [7] McGregor believes both ends of the spectrum are too extreme for efficient real-world application. They tend to blame employees in most situations, without questioning the systems, policy, or lack of training which could be the real cause of failures. It has been a fact that sustainability and employee turnover in corporations rely heavily on the different styles of management practiced at given companies nowadays. This is much more likely to happen when the leaders influence flows out of intrinsic such as rationality, expertise, moralistic appeal, and/or referent power. d. job satisfaction is primarily related to higher-order needs. With a workplace centered on trust, its important not only to instill trust in your teammatesbut also in the right technology to get the job done. In fact, most work groups contain at least one informal leader. The Situational Leader: Overview & Examples | What is a Situational Leader? The theory X and Y leadership model was developed 50 years ago and has been validated by modern research. 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. Creativity and problem-solving thrive when employees are trusted. Accept work as a normal part of their day, and it's right next to recreation and rest. People enjoy taking ownership of their work. And the most lauded skills, especially in leadership, lie in the ability to connect seemingly disparate ideas and communicate those ideas clearly. It follows the idea that there is no single way to organize a company or make decisions. 1999-2023, Rice University. most employees know more about their job than the bossd. If a company wants to realize thebenefits described above, itneed to have the following: Theory Z is not the last word on management, however, as it does have its limitations. Theory X refers to an authoritarian style and Theory Y refers to a participative/interactive style of managing employees. and you must attribute OpenStax. Theory X vs Theory Y Managers| Douglas McGregor's Management Theory, Douglas McGregor's Motivation & Management Theories, Adair's Action-Centered Leadership Theory. To McGregor, a steady supply of motivation seemed more likely to occur underTheory Y management. They do not always need coercion, incentives or force to complete their work. b.employees are motivated mainly by the chance for advancement and recognition. 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. If you are redistributing all or part of this book in a print format, 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 . This approach is usually taken by managers working in older companies and firms. 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. They can use self-direction and self-control in this aspect. However, employees can be most productive when their work goals align with their higher-level needs. Theory X managers tend to take a pessimistic view of their people, and assume that they are naturally unmotivated and dislike work. Most people are self-centered. It is to McGregors thorough research and curiosity in behavior and incentive that we owe our current understanding of Theory X and Theory Y. French and Raven provide us with a useful typology that identifies the sources and types of power that may be at the disposal of leaders: Not all forms of power are equally effective (see Exhibit 13.5), nor is a leaders total power base the simple sum of the powers at his disposal. 22nd International Command and Control Research and technology Symposium (ICCRTS). When I say X, I don't mean the type that marks a treasure - in fact, quite the opposite is true. Managers may prefer one theory over the other; it depends on individual trait differences. Theory X and Theory Y are theories of human work motivation and management. D. job satisfaction is primarily related to higher order needs. This judgement could say a lot about your style of management. Some people prefer micromanaging and leading, and some people prefer giving space. Managers who choose the Theory X approach have an authoritarian style of management. The Theory Y managers believe their role is to help develop an employee's potential so that s/he can work towards common organizational goals. But how do leaders effectively exercise this influence? They are not lazy at all. Theory Y is used by managers who believe employees are responsible, committed and self-motivated. People will be self-directed and creative to meet their work and organizational objectives if they are committed to them. C. employees are motivated mainly by the chance for advancement and recognition. McGregor makes the point that a command-and-control environment is not effective because it relies on lower needs for motivation, but in modern society those needs are mostly satisfied and thus are no longer motivating. [4] McGregor's perspective places the responsibility for performance on managers as well as subordinates.[5]. A manager dealing with a group of experts would likely use this theory and give them freedom and space to work. It is also used in unskilled labor organizations or production firms. You lead people.23 Informal leaders often have considerable leverage over their colleagues. [10] In comparison to Theory X, Theory Y incorporates a pseudo-democratic environment to the workforce. With this intuitive, cloud-based solution, everyone can work visually and collaborate in real time while building flowcharts, mockups, UML diagrams, and more. But . People need more than monetary rewards or the threat of punishment to do their jobs. 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