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Douglas MacGregor Douglas MacGregor Theory X and Theory Y Theory X and Theory Y

Douglas MacGregor

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Douglas MacGregor. Theory X and Theory Y. The Human Side of Enterprise. In his 1960 management book, The Human Side of Enterprise , Douglas McGregor suggested two very different management views on how employees behave and how to achieve employee motivation. - PowerPoint PPT Presentation

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Page 1: Douglas MacGregor

Douglas MacGregorDouglas MacGregor

Theory X and Theory YTheory X and Theory Y

Page 2: Douglas MacGregor

The Human Side of EnterpriseThe Human Side of Enterprise

In his 1960 management book, In his 1960 management book, The Human Side of The Human Side of EnterpriseEnterprise, Douglas McGregor suggested two very , Douglas McGregor suggested two very different management views on how employees behave different management views on how employees behave and how to achieve employee motivation. and how to achieve employee motivation.

He referred to these nearly opposite management He referred to these nearly opposite management approaches as approaches as Theory XTheory X and and Theory YTheory Y. .

Both of these theories assume that management's role is to Both of these theories assume that management's role is to organize human resources - employees, in a way that organize human resources - employees, in a way that maximises productivity. But how the two types of maximises productivity. But how the two types of manager achieve this objective are very different.manager achieve this objective are very different.

Page 3: Douglas MacGregor

Theory X and Theory Y managers have Theory X and Theory Y managers have completely different views of workers. completely different views of workers.

If a manager has a Theory X approach to management , he If a manager has a Theory X approach to management , he will always set objectives for workers without consulting will always set objectives for workers without consulting them, will give instructions without feedback and will them, will give instructions without feedback and will punish or reward according to strict rules.punish or reward according to strict rules.

In contrast, a manager who has a Theory Y view of workers In contrast, a manager who has a Theory Y view of workers will involve them in decision making, encourage will involve them in decision making, encourage feedback during communication and empower workers.feedback during communication and empower workers.

Page 4: Douglas MacGregor

Behaviour of Theory X ManagersBehaviour of Theory X Managers

Theory X managers take the view that Theory X managers take the view that • Workers must be forced or controlled in work to do a good jobWorkers must be forced or controlled in work to do a good job• Workers prefer to be told what to do – supervised and instructedWorkers prefer to be told what to do – supervised and instructed• Work is unpleasant to most people, who will attempt to avoid work Work is unpleasant to most people, who will attempt to avoid work

whenever possible. whenever possible. • Most employees are not ambitious, have little desire for Most employees are not ambitious, have little desire for

responsibility, and prefer to have simple, understandable tasks. responsibility, and prefer to have simple, understandable tasks. • Motivation occurs only at the physiological and security levels of Motivation occurs only at the physiological and security levels of

Maslow's Hierarchy of Needs – forget Hertzberg’s motivators Maslow's Hierarchy of Needs – forget Hertzberg’s motivators Most workers have little capacity for creativity in solving problems. Most workers have little capacity for creativity in solving problems.

Page 5: Douglas MacGregor

Applying Theory X Management Applying Theory X Management – the business impact– the business impact

If Theory X managers are in charge, the a business is likely If Theory X managers are in charge, the a business is likely to use the principles of Taylors scientific management to to use the principles of Taylors scientific management to control and ensure quality. So we would see:control and ensure quality. So we would see:

• Motivation through financial means - even piece rate payMotivation through financial means - even piece rate pay• High levels of supervisionHigh levels of supervision• Jobs broken down into simple tasksJobs broken down into simple tasks• A strict hierarchy – each worker having clear understanding of their A strict hierarchy – each worker having clear understanding of their

rolerole• An authoritarian managementAn authoritarian management

Page 6: Douglas MacGregor

Behaviour of Theory Y Managers Behaviour of Theory Y Managers

Theory Y managers take the view that :Theory Y managers take the view that :

• Workers learn to accept and seek responsibilityWorkers learn to accept and seek responsibility• Workers will be self-directed and creative in their efforts to meet Workers will be self-directed and creative in their efforts to meet

their work and organizational objectives. their work and organizational objectives. • Workers will be committed to quality and productivity objectives if Workers will be committed to quality and productivity objectives if

rewards are in place that address higher needs such as self-rewards are in place that address higher needs such as self-fulfilment. fulfilment.

• The capacity for creativity spreads through all layers of the work The capacity for creativity spreads through all layers of the work place – everyone has something to contribute. place – everyone has something to contribute.

Page 7: Douglas MacGregor

Applying Theory Y Management – Applying Theory Y Management – the business impactsthe business impacts

If Theory Y managers are in control the organization is likely to use the If Theory Y managers are in control the organization is likely to use the principles of management more like Hertzberg's motivators to principles of management more like Hertzberg's motivators to improve employee performance:improve employee performance:

• Decentralization and delegation - If firms decentralize control and Decentralization and delegation - If firms decentralize control and reduce the number of layers of hierarchy, managers will have wider reduce the number of layers of hierarchy, managers will have wider spans of control and will delegate some responsibility and decision spans of control and will delegate some responsibility and decision making to them.making to them.

• Job enlargement / enrichment/empowerment - Broadening the Job enlargement / enrichment/empowerment - Broadening the

scope of an employee's job adds variety and opportunities to satisfy scope of an employee's job adds variety and opportunities to satisfy higher level needs like self fulfilment. higher level needs like self fulfilment.

Page 8: Douglas MacGregor

Theory Y Management – the Theory Y Management – the business impactsbusiness impacts

• Workers will be consulted during the decision making process, Workers will be consulted during the decision making process, which motivates them and takes advantage of their creativity and which motivates them and takes advantage of their creativity and problem solving skills and provides workers with more control over problem solving skills and provides workers with more control over their work environment. their work environment.

• Performance Appraisals can be used to have each employee set Performance Appraisals can be used to have each employee set their own objectives and take part in the process of evaluating how their own objectives and take part in the process of evaluating how well they were met. well they were met.

..