Ouchis theory first appeared in his 1981 book, Theory Z: How American Management Can Meet the Japanese Challenge. [6] Due to these assumptions, Theory X concludes the typical workforce operates more efficiently under a hands-on approach to management. Organizations have two kinds of leaders: formal and informal. I would definitely recommend Study.com to my colleagues. In general, Theory X style managers believe their employees are less intelligent, lazier, and work solely for a sustainable income. In the 1970s, 1980s, and 1990s, McGregor's conceptualization of Theory X and Theory Y were often used as the basis for discussions of management style, employee involvement, and worker motivation. A study of 3,600 managers from 14 countries reveals that most of them held assumptions about human nature that could best be classified as Theory X.37 Even though managers might publicly endorse the merits of participatory management, most of them doubted their workers capacities to exercise self-direction and self-control and to contribute creatively.38, Contemplating the central role of problem-solving in management and leadership, Jan P. Muczyk and Bernard C. Reimann of Cleveland State University offer an interesting perspective on four different leadership styles (see Exhibit 13.7) that revolve around decision-making and implementation processes.39. Theory X and Theory Y thinking and leadership are not strictly an American phenomenon. Research indicates that people are unlikely to follow individuals who, for example, do not display drive, self-confidence, knowledge of the situation, honesty, and integrity. As a Theory X manager, Xavier believes that his workers: Xavier assumes that his employees show up for work for their paycheck and the security that a regular, paying job offers. Managerial Functions in the International Organization. Most people can handle responsibility because creativity and ingenuity are common in the population. [3] According to Maslow, a human is motivated by the level they have not yet reached, and self-actualization cannot be met until each of the lower levels has been fulfilled. They lack ambition and physiological and safety factors motivate them. It refers to the management style that follows a more participative, interactive and optimistic approach. Sometimes these powers lead to follower performance and satisfaction, yet they also sometimes fail. employees are motivated mainly by the chance for advancement and recognition. Theory X managers are likely to believe that: most employees know more about their job than the boss. Management believes employees' work is based on their own self-interest. As soon as that need is satisfied, the employees have no additional motivation for coming to work. Different situations call for different configurations of knowledge, skills, and abilities. 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. The answer often is that a leaders social influence is the source of his power. A Theory X management style may be well-suited for this type of structured, process-driven workplace. Overall leader effectiveness will be higher when people follow because they want to follow. Using this theory in these types of work conditions allows employees to specialize in particular work areas which in turn allows the company to mass-produce a higher quantity and quality of work. 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. The OpenStax name, OpenStax logo, OpenStax book covers, OpenStax CNX name, and OpenStax CNX logo An error occurred trying to load this video. An individual who was self- motivated was best left alone in a. 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. Older, strictly hierarchical conceptions of C2, with narrow centralization of decision rights, highly constrained patterns of interaction, and limited information distribution tend to arise from cultural and organizational assumptions compatible with Theory X. It helped me pass my exam and the test questions are very similar to the practice quizzes on Study.com. [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. Here, managers see employees as responsible and proactive. The managers who are categorized as a Theory X leaders in general believe that the subordinates fail to live up to the corporate expectations hence assume that subordinates are just influenced with rewards as well as monetary rather than fulfilling the stated corporate objectives. They were created by Douglas McGregor while he was working at the MIT Sloan School of Management in the 1950s, and developed further in the 1960s. His ideas gained most of their momentum in the 1960s, when the American and Western workforce was at a crucial transition from factory work of the Industrial Revolution to more collaborative technology-centered teamwork, aided no doubt by the Womens Labor Movement and the dawn of computing technology. Evidence suggests that managers from different parts of the global community commonly hold the same view. 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, Once you complete this lesson you'll be able to understand the two different types of managers as theorized by Douglas McGregor. Although Theory Y encompasses creativity and discussion, it does have limitations. Theory X managers are likely to believe that employees are lazy, fear-motivated, and in need of constant direction. In actual practice, most managers today practice a combination of Theory X and Theory Y styles of management. Jack Welch was the formal leader of General Electric, and Leonard Bernstein was the formal leader of the symphony. Douglas McGregor was a management professor at Massachusetts IT university, Cambridge in the 1950s, and published a few articles and books as well. D. Job satisfaction is mostly related to higher order needs. 9899. Henry comes to work regularly on time and his performance has been consistent. Are inherently lazy, lack ambition and prefer to be directed on what to do rather than assume responsibility on their own. 147 lessons Leaders hold a unique position in their groups, exercising influence and providing direction. He would hierarchically arrange the job roles with several supervisors for different departments, looking over employees. [6] Managers who believe employees operate in this manner are more likely to use rewards or punishments as motivation. The use of rationality, expert power, and/or moralistic appeal generally elicits commitment and the internalization of the leaders goals.29, Leaders who use referent and expert power commonly experience a favorable response in terms of follower satisfaction and performance. 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. Except where otherwise noted, textbooks on this site This style of leadership is seen as appropriate when circumstances require quick decisions and organizational members are new, inexperienced, or underqualified. 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 . 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. The role of the Theory X manager is to coerce and control employees to work towards organizational goals. University-based ROTC programs and military academies (like West Point) formally groom people to be leaders. She also holds three degrees including communications, business, educational leadership/technology. They are not inherently irresponsible or lazy. Increasingly, leaders in organizations will be those who best sell their ideas on how to complete a projectpersuasiveness and inspiration are important ingredients in the leadership equation, especially in high-involvement organizations.22. [4] This led companies to focus on how their employees were motivated, managed, and led, creating a Theory Y management style which focuses on the drive for individual self-fulfillment. A ) So grab your bomb repellent while we explore these two different types of managers by discussing the assumptions of each. People need more than monetary rewards or the threat of punishment to do their jobs. B.most employees know more about their job than the boss. 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. Some employees may take advantage of this freedom and not meet their work objectives. [6] Theory X is a "we versus they" approach, meaning it is the management versus the employees. [12] On the contrary, managers who choose the Theory Y approach have a hands-off style of management. These credits give the individual a status that allows him to influence the direction that the group takes as it works to achieve its goals.27. Therefore, Xavier believes his role as a manager is to coerce and control his employees to work towards organizational goals. It is possible that the originator, and subsequent researchers, of these contrasting theories did not place much emphasis on these attributes as being inherent in humans, but workplace reality suggests these two distinct facts are real. This is a positive view of the nature of workers. When this persons role is sanctioned by the formal organization, these team leaders become formal leaders. 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. He mentioned Theory X and Theory Y in his book, The Human Side of Enterprise, published in 1960. PEOPLE WILL SEEK INCREASED RESPONSIBILITY AND CHALLENGE AND WILL WORK HARD UNDER THE RIGHT CONDITIONS True or false: A research called the "New Generation" of Chinese organizational leaders found that the new generation group scored the same on individualism as the current and older generation groups. People must be constantly directed, prompted, rewarded, or punished in order to complete their work. According to McGregor, Theory X managementassumes the following: Essentially, Theory X assumes that the primary source of employee motivation is monetary, with security as a strong second. Theory X represents a negative view of human nature that assumes individuals generally dislike work, are irresponsible, and require close supervision to do their jobs. Accept work as a normal part of their day, and it's right next to recreation and rest. Participative Leadership Theory & Examples | What is Participative Leadership? [8] This approach is derived from Fred Fiedler's research over various leadership styles known as the contingency theory. People will use work to satisfy their lower needs and seek to satisfy their higher needs during their leisure time. Theory X refers to an authoritarian style and Theory Y refers to a participative/interactive style of managing employees. One of the critical difference between theory Y and theory X is that employees in theory X are associated with adverse traits while employees under theory Y are associated with positive characteristics. People will be self-directed and creative to meet their work and organizational objectives if they are committed to them. [4] McGregor's perspective places the responsibility for performance on managers as well as subordinates.[5]. What is the role of the leader and follower in the leadership process? Theory X managers are likely to believe that: A. the average person dislikes work and will seek to avoid it when possible. Theory Y is used by managers who believe employees are responsible, committed and self-motivated. It refers to the management style that believes in authoritarian and controlling . The Theory X leader assumes that the average individual dislikes work and is incapable of exercising adequate self-direction and self-control. Behavior management theorist Douglas McGregor posited Theory X and Theory Y which hold that there are two types of managers: ones who assume a positive view of their workers, and ones who assume a negative view. 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. Theory X management is substantially a matter of crafting positive and negative incentives, such as bonuses or other rewards for meeting targets, or progressive discipline for falling short, which may include remedial training. This theory is also likely to be used when the work in the organization is repetitive and employees are likely to get bored and need some control. While money may not be the most effective way to self-fulfillment, it may be the only way available. In 1960, Douglas McGregor published two theories (Theory X & Theory Y) of employee motivation based on the assumptions that managers make about employees. Because managers and supervisors are in almost complete control of the work, this produces a more systematic and uniform product or work flow. They do not always need coercion, incentives or force to complete their work. The Japanese had discovered something that was givingthem the competitive edge. As a result, they think that employees need to be prompted, rewarded or punished regularly to make sure that they perform their tasks. The capacity for creativity spreads throughout organizations. Douglas McGregor introduced Theory X and Theory Y to explain different styles of management. B.most employees know more about their job than the boss. While these contrasting management styles might be easily recognizable in todays technology-driven world, they were novel thoughts at one point, developed through research and observation by a workplace thought leader. Theory X managers are likely to believe that employees are lazy, fear-motivated, and in need of constant direction. This ensures work stays efficient, productive, and in-line with company standards.[9]. A manager who believes in Theory Y could have assumptions that: Too much freedom could lead to no accountability and people could lose direction and focus. As an Amazon Associate we earn from qualifying purchases. In modern days and times, Theory Y works more effectively. Market Segmentation Types & Examples | What is Market Segmentation? Question: QUESTION 17 Theory X managers are likely to believe that: a. the average employee dislikes work and will seek to avoid it when possible. The result was Theory Za developmentbeyond Theory X and Theory Y thatblended the best of Eastern and Western management practices. Well as subordinates. [ 5 ] assumptions, Theory Y approach have a hands-off of... Of constant direction discovered something that was givingthem the competitive edge places the responsibility for performance on managers well. To recreation and rest the same view educational leadership/technology of workers most employees know more about their job the. 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