They can have creativity, innovation and potential skills that they can use to solve problems or to perform effectively. Management believes employees' work is based on their own self-interest. 9899. job satisfaction is primarily related to higher-order needs. 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. In fact, most work groups contain at least one informal leader. [2], McGregor's Theory X and Theory Y and Maslow's hierarchy of needs are both rooted in motivation theory. However, neither of these extremes is optimal. Managers may prefer one theory over the other; it depends on individual trait differences. An organization with this style of management encourages participation and values individuals' thoughts and goals. The secret to their success was not what they were producing but how they were managing their peopleJapanese employees were engaged, empowered, and highly productive. In general, Theory X style managers believe their employees are less intelligent, lazier, and work solely for a sustainable income. The manager provides incentives and appraisals, but they are given as acknowledgement and appreciation of the employees performances, and not to control them. 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]. Humanistic psychologist Abraham Maslow, upon whose work McGregor drew for Theories X and Y, [6] Due to these assumptions, Theory X concludes the typical workforce operates more efficiently under a hands-on approach to management. C. employees are motivated mainly by the chance for advancement and recognition. McGregor stressed that Theory Y management does not imply a soft approach. How do the theories of Tannenbaum and Schmidts leadership continuum and McGregors Theory X and Theory Y attempt to define leadership? Theory X managers tend to take a pessimistic view of their people, and assume that they are naturally unmotivated and dislike work. c. employees are motivated mainly by the chance for advancement and recognition. Typically, managers who apply theory X are more authoritarian. This is because; Theory X reduces the people to 'clogs in machine' and is more likely to de-motivate people in the long-run. Business Case Study: Apple's Management Style, Henri Fayol's Principles of Management | Summary & Explanation, Marginal Tax Rate Concept & Formula | How to Calculate Marginal Tax Rate, Decision Making Skills & Techniques | How to Improve Decision Making. C. employees are motivated mainly by the chance for advancement and recognition.D. An individual who was self- motivated was best left alone in a. [8] As a result, Theory Y followers may have a better relationship with their boss, creating a healthier atmosphere in the workplace. I see Theory X and Theory Y as two natural divisions of people; groupings into those who dislike working and those who are inclined to working without persuasion. Theory X can benefit a work place that utilizes an assembly line or manual labor. Instead, McGregor feels that an approach located in the middle would be the most effective implementation of Theory X.[7]. This is a participative management style that gives rise to a more collaborative work environment, whereas theory X leads to micromanaging. A lot of control and supervision could lead to resentment and will not help in facilitating innovative or creative ideas. Hence, both theories used in moderation are key to good organization. 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. Accountability from employees is needed (Theory X) and flexibility and creativity is needed as well (Theory Y). One assumption is that theyseek to build cooperative and intimate working relationships with their coworkers. Employees additionally tend to take full responsibility for their work and do not need close supervision to create a quality product. Grace Hopper, retired U.S. Navy admiral, draws a distinction between leading and managing: You dont manage people, you manage things. The Situational Leader: Overview & Examples | What is a Situational Leader? Power, then, essentially answers the how question: How do leaders influence their followers? A formal leader is that individual who is recognized by those outside the group as the official leader of the group. The Theory Y manager generally believes employees want responsibility and will perform up to expectations if given clear direction and goals. 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. Theory X holds a pessimistic view of employees in the sense that they cannot work in the absence of incentives. the average person dislikes work and will seek to avoid it when possible. Theory X, although outdated, is still used in larger firms, wherein a higher number of people are employed and deadlines are to be met. We refer to this person as the designated leader (in this instance the designated and formal leader are the same person). [6] Managers who believe employees operate in this manner are more likely to use rewards or punishments as motivation. We use cookies to ensure that we give you the best experience on our website. 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. Why not assume the best in people? They're full of potential, and it's through their own. As the challenges facing a group change, so too may the flow of power and leadership. Plus, get practice tests, quizzes, and personalized coaching to help you McGregor recognized that some people may not have reached the level of maturity assumed by Theory Y and may initially need tighter controlsthat can be relaxed as the employee develops. While there is a more personal and individualistic feel, this leaves room for error in terms of consistency and uniformity. Once those needs have been satisfied, the motivation disappears. Do you agree with Riya or Joseph? "Mission Command and Agile C2." O most employees know more about their job than the boss. Leaders who rely on reward power develop followers who are very measured in their responses to [what? Work in organizations that are managed like this can . The worker is assumed to be immature and viewed as being very gullible. These managers view their employees as one of the most valuable assets to the company, driving the internal workings of the corporation. However, high-involvement organizations frequently encourage their formal and informal leaders to exercise the full set of management roles. Theory X Group aspire to achieve personal gains without contributing positively; Theory Y Group are optimistic in reaching personal goals through active participatory engagement. copyright 2003-2023 Study.com. 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. 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. Elton Mayo's Theory of Management |Overview & History, Charisma in Leadership | Charismatic Examples & Theory. 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. Research suggests that rationality is the most effective influence tactic in terms of its impact on follower commitment, motivation, performance, satisfaction, and group effectiveness.30. A manager's behavior and expectations are as contagious as the plague. He wrote on leadership as well. However, employees can be most productive when their work goals align with their higher-level needs. It can be difficult for organizations and employees to make life-time employment commitments. Different types of power elicit different forms of compliance: Leaders who rely on coercive power often alienate followers who resist their influence attempts. then you must include on every physical page the following attribution: If you are redistributing all or part of this book in a digital format, Abraham Maslow and McGregor both gave popular theories on motivation. Both sides seek to satisfy some personal pleasures and needs. He was particularly interested in what motivates people to work hard, in particular on what belief systems motivate people to work hard. As soon as that need is satisfied, the employees have no additional motivation for coming to work. Under Theory X, one can take a hard or soft approach to getting results. They also dislike change and tend to resist it at all costs. In 1960, Douglas McGregor published two theories (Theory X & Theory Y) of employee motivation based on the assumptions that managers make about employees. Participative Leadership Theory & Examples | What is Participative Leadership? [4] The workplace lacks unvarying rules and practices, which could potentially be detrimental to the quality standards of the product and strict guidelines of a given company. The Theory X leader assumes that the average individual dislikes work and is incapable of exercising adequate self-direction and self-control. Most people avoid responsibility and need constant direction. Hi, This unique platform allows team leaders to share visuals with teammates, work together on projects in real time, comment on documents and project updates, and work collaboratively with up-to-the-minute feedback. There are several ways to lead an organization and this theory allows fluidity. employees are motivated mainly by the chance for advancement and recognitionc. [1] McGregor's work was rooted in motivation theory alongside the works of Abraham Maslow, who created the hierarchy of needs. Most people are self-centered. 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