Saturday 22 June 2013

Douglas McGregor's theory X and theory Y : What Works ?

The objective of this blog is to comprehend the nuances of various management styles using McGregor's theory X and theory Y.

Douglas McGregor
Douglas McGregor

Douglas McGregor, was a pioneer of management theory. He was a social psychologist who became the president of Antioch College and later worked as a professor of management at MIT. He is best remembered for his 1960 book, The Human Side of Enterprise, in which he presented his now-famous Theory X and Theory Y. 

Theory X and Theory Y are still referred to commonly in the field of management and motivation. Though recent studies have questioned the rigidity of the model, it still remains a valid basic principle to develop positive management styles and techniques.


About Theory X and Theory Y

Assumptions of Theory X management: 
  • People dislike work and will avoid it if possible
  • Most people must be “coerced, controlled, directed, and threatened with  punishment to get  them” to work
  • The average human prefers to be directed, wishes to avoid responsibility, has little ambition, and wants security
These assumptions lead managers to :
  • Deny employees control over their work environment and to use methods of influence that are direct and harsh
                            
  • Emphasize the chain of command, reward-or-punishment motivational techniques, and close supervision of subordinate behavior along rigidly defined behavioral parameters 
It is argued that classical management practice was hindering rather than helping organizations solve prob- lems, meet goals, and deliver a product in a reliable manner.

  Assumptions of Theory Y management: 

  Theory Y managers assume that :

  • The  people they supervise are as committed to work and as capable of finding solutions to work-related problems as they are themselves
  • People inherently prefer to work rather than not to work and as a result, they tend to push responsibility for work down the chain of command 
  • They can grant employees autonomy within their areas of accountability, and they structure work so that subordinates have ample opportunity to   identify problemand find creative solutions to them
Theory Y managers attempto structure the work environment so that     employee goals coincide with organizational goals, resulting presumably in greater creativity and productivity.

Let us try to understand the implications of four different possible combinations on organisations, like :

1. Theory X Manager assume LAZY workers as LAZY and make them work


In this scenario, a theory X manager who inherently feels that people dislike work and will avoid it if possible (LAZY) will try to control and push the lazy workers to get the job done.This might result in getting work done but it will not complete in all respects(will be failing in some or the other aspect like quality of work).


2. Theory X Manager assume NOT LAZY workers as LAZY and make them work

In this case, diligent workers are treated as lazy workers which eventually leads to high degree of animosity between workers and manager as the theory X manager denies employees control over their work environment uses methods of influence that are direct and harsh.This results in employees being reluctant and feeling highly demotivated to work.


3. Theory Y Manager assume LAZY workers as NOT LAZY and make them work

As these managers believe that people inherently prefer to work rather than not to work and as a result, they tend to push responsibility for work, motivate the lazy workers and thrive to achieve positive results in the end.
Although this process of motivating the lazy workers consumes some time before good results manifest, it is actually possible that it gradually yields intended output.
   
4. Theory Y Manager assume NOT LAZY workers as NOT LAZY and make them work
This is the most ideal combination of workers and manager and hence is the most desirable as workers it can be trusted to do their jobs to their utmost ability.Workers work with great motivation and high levels of satisafaction as enough freedon and autonomy is granted.Also, management can be trusted to support them and look out for their well being.

For visual understanding of Theory X and Theory Y, watch the video below




As evident from the above explanation, Theory Y of management calls for an integrative form of management. It is based on employee motivation which is a vital tool for ensuring productivity. Motivated employees are committed to the overall organizational goals and they are also loyal to their organizations.


Hence,Theory Y of management is widely used today to meet the organizational objectives and goals in a more cost effective way.

Even in my personal experience, i have met those managers who belong to the class of Theory Y managers who have always motivated, encouraged and trusted their workers in the job that they perform.This style of management actually yielded very good results. My co-workers, colleagues and my self have increased our committment and creative thinking in parallel to our contributions to the organization we work for. 

This experience has taught me that unlike in traditional management theories which believed that people could be controlled like machines, people have other pyschological needs like motivation and pyschological rewards like encouragement which drive a person to work at maximum potential rather than money or monetary rewards.

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