The Theory of X and Y
by: McGregor
Theory X and Theory Y were first explained by McGregor in his book, 'The
Human Side of Enterprise,' and they refer to two styles of management –
authoritarian (Theory X) and participative (Theory Y).
If you believe that your team members dislike their work and have little
motivation, then, according to McGregor, you'll likely use an authoritarian style of
management. This approach is very "hands-on" and usually involves
micromanaging people's work to ensure that it gets done properly. McGregor
called this Theory X.
Theory X
Theory X managers tend to take a pessimistic view of their people, and assume that
they are naturally unmotivated and dislike work. As a result, they think that team
members need to be prompted, rewarded or punished constantly to make sure that
they complete their tasks.
Work in organizations that are managed like this can be repetitive, and people are
often motivated with a "carrot and stick" approach. Performance appraisals and
remuneration are usually based on tangible results, such as sales figures or product
output, and are used to control staff and "keep tabs" on them.
This style of management assumes that workers:
Dislike their work.
Avoid responsibility and need constant direction.
Have to be controlled, forced and threatened to deliver work.
Need to be supervised at every step.
Have no incentive to work or ambition, and therefore need to be enticed by
rewards to achieve goals.
According to McGregor, organizations with a Theory X approach tend to have
several tiers of managers and supervisors to oversee and direct workers. Authority
is rarely delegated, and control remains firmly centralized. Managers are more
authoritarian and actively intervene to get things done.
Although Theory X management has largely fallen out of fashion in recent times,
big organizations may find that adopting it is unavoidable due to the sheer number
of people that they employ and the tight deadlines that they have to meet.
Theory Y
Theory Y managers have an optimistic, positive opinion of their people, and they
use a decentralized, participative management style. This encourages a more
collaborative, trust-based relationship between managers and their team members.
People have greater responsibility, and managers encourage them to develop their
skills and suggest improvements. Appraisals are regular but, unlike in Theory X
organizations, they are used to encourage open communication rather than control
staff.
Theory Y organizations also give employees frequent opportunities for promotion.
This style of management assumes that workers are:
Happy to work on their own initiative.
More involved in decision making.
Self-motivated to complete their tasks.
Enjoy taking ownership of their work.
Seek and accept responsibility, and need little direction.
View work as fulfilling and challenging.
Solve problems creatively and imaginatively.
Theory Y has become more popular among organizations. This reflects workers'
increasing desire for more meaningful careers that provide them with more than
just money.
It's also viewed by McGregor as superior to Theory X, which, he says, reduces
workers to "cogs in a machine," and likely demotivates people in the long term.
