THEORY “X” AND THEORY “Y”

THEORY “X” AND THEORY “Y”

Theory “X” and Theory “Y” was an idea devised and developed by Douglas Mcgregor in his book 1960 book “The Human Side of Enterprise”. It encapsulated a fundamental distinction between management styles and has formed the basis for much subsequent writing on the subject.

THEORY “X”

This theory assumes that employees are naturally unmotivated and dislike working and this encourages an authoritarian style management. According to this view, management must actively intervene to get things done. This style of management assumes that workers:

·         Dislike working

·         Avoid responsibility and need to be directed.

·         Have to be controlled, forced and threatened to deliver what’s needed.

·         Need to be supervised at every step with controls put in place.

·         Need to be enticed to produce result.

“X” type organizations tend to be top heavy, with managers and supervisors required at every step to control workers. There is little delegation of authority and control remains firmly centralized.

THEORY”Y”

The theory proposed a participative style of management that is de-centralized. It assumes that employees are happy to work, self-motivated, creative and enjoy working with greater responsibility. It assumes that workers:

·         Take responsibility and are motivated to fulfill the goals they are given.

·         Seek and accept responsibility and do not not need much direction.

·         Consider work a natural part of life and solve work problems imaginatively.

COMPARING THEORY “X” AND THEORY “Y”

v  MOTIVATION

Theory “X” assumes that people dislike work; they want to avoid it and do not want to take take responsibility. Theory “Y” assumes that people are self-motivated and thrive on responsibility.

v  MANAGEMENT STYLE AND CONTROL

In a theory “X” organization, management is authoritarian and centralized control is retained while in theory “Y” organization, management involves employees in decision making but retains power to implement decisions.

v  WORK ORGANIZATION

Theory “X” employees tend to have specialized and often repetitive work. In theory “Y”, the work tends to be organized around wider areas of skill or knowledge. Employees are also encouraged to develop expertise and make suggestions and improvements.

v  REWARDS AND APPRAISALS

Theory “X” organizations work on a ‘carrot and stick’ basis, and performance appraisal is part of the overall mechanisms of control and remuneration. In theory “Y” organizations, appraisal is also regular and important but is usually a separate mechanism from organizational controls. Theory “Y” organizations also give employees frequent opportunities for promotion.