The guide has the low-down on over 100 of the most influential business-management ideas and more than 50 of the world's most influential management thinkers. To McGregor, a steady supply of motivation seemed more likely to occur under Theory Y management. Theory Y implies that the managers should create and encourage a work environment which provides opportunities to employees to take initiative and self-direction. Meeting these needs requires more money and, hence, the individual is prompted to work more. An organization with this style of management is made up of several levels of supervisors and managers who actively intervene and micromanage the employees.
According to McGregor, there are two opposing approaches to implementing Theory X: the hard approach and the soft approach. The same is depicted in the following Fig 17. They were not created by McGregor. Which theory do you subscribe to? By backing off and letting the employees shine, companies in the Theory Y category are usually better off in the end. Managers may dislike participation as it may hurt their ego and freedom. This links to physiological needs money and sustenance and safety job security.
The replies respondents gave when they felt good about their jobs were significantly different from the replies given when they felt bad. S See also the article about building self-confidence, and assertiveness techniques. This approach is derived from Fred Fiedler's research over various leadership styles known as the. As against, democratic leadership style is adopted in the case of theory Y. Valence: Valence, according to Vroom, means the value or strength one places on a particular outcome or reward. Employees derive the satisfaction of social, esteem and self-actualization needs within this kind of environment. This approach can potentially yield a hostile, minimally cooperative workforce that may cause resentment towards management.
They want their organisation to succeed. He also points out; however, that management sometimes has a tendency to underestimate the ability of the workers to effectively contribute to the decision making process Bittel, 1989. It uses the participative style of management and assumes that workforce is self-directed and enjoy the work assigned to them, in the accomplishment of organisational objectives. In comparison to Theory X, Theory Y incorporates a pseudo-democratic environment to the workforce. McGregor also believed that self-actualization was the highest level of reward for employees.
The workers have a great deal of input and weight in the decision making process. In a nutshell, it may seem that Maslow, McClelland, Herzberg, and McGregor view motivation from a different perspective. A manager who embraces Theory X will tend to adopt an authoritarian management style, whereas a manager who accepts Theory Y will be likely to adopt a participatory and empowering style. Maslow identified five levels in his need hierarchy as shown in figure 17. Generally speaking, employees do not enjoy working for this type of company.
Theory X assumes that lower-order needs dominate individuals. In other words, need for achievement is a behaviour directed toward competition with a standard of excellence. High-need achievers have a strong desire to assume personal responsibility for performing a task for finding a solution to a problem. Analysis of Theory X and Theory Y Theory X as previously stated is where a manager thinks that all employees are lazy, dislike work and will try to avoid doing work. Theory X managers believe that workers are only motivated by one thing — money.
The term self-actualization was coined by Kurt Goldstein and means to become actualized in what one is potentially good at. According to Maslow, the human needs follow a definite sequence of domination. Theory Z is not the last word on management, however, as it does have its limitations. Promotions also occur on a regular basis. Thus, these are important tools in understanding the behavior of human beings and in to motivate the employees.
In order to make individuals grow mature, he proposes gradual shift from the existing pyramidal organisation structure to humanistic system; from existing management system to the more flexible and participative management. The two theories proposed by McGregor describe contrasting models of workforce applied by managers in , , and. Most employees including managers fall somewhere in between these poles. McClelland mentioned that the drive for achieving varies in individuals according to their personality and cultural background. Managers tend to follow one of these approaches in their everyday struggle to motivate their teams.
An office with sleep pods, the latest PlayStation consoles, work-from home options, informal dress code and office happy hours — sounds like an employee dream? Employees in this setting feel pressured and micromanaged, as they know that they need to perform consistently or risk being replaced. The workplace has been designed on the Japanese pattern, which involves open offices. If a person or supplier is not delivering, the company will go elsewhere for a better deal. And if you want to sincerely create a workforce that is inspired, then you need to stop trying to train employees, like one does with animals — through reward and punishment. That is, they like to work as little as possible. Though these theories are very basic in nature, they provide a platform for future generations of management theorists and practitioners to understand the changing dynamics of human behavior. Taken too literally, Theories X and Y seem to represent unrealistic extremes.