INDIVIDUAL ASSIGNMENT

Introduction to Management – MGT103

TOPIC: DISCUSS AND ANALYSE THEORY X AND THEORY Y

IN REAL-LIFE EXPERIENCE

Class: MKT1608
Lecture: Phan Hoàng Hà
Full name: Hồ Huỳnh Minh Tâm
Student ID: SS160181
Semester Spring 2022
Table of Contents
Introduction ................................................................................................................................................... 2

Theoretical basis ............................................................................................................................................ 2

An introduction to management................................................................................................................ 2

What is X-Y Theory of Management?...................................................................................................... 2

Theory X ............................................................................................................................................... 3
Theory Y ............................................................................................................................................... 4

Discussion ..................................................................................................................................................... 4

Theory X ................................................................................................................................................... 4

Theory Y ................................................................................................................................................... 5

Conclusion ..................................................................................................................................................... 6

References ..................................................................................................................................................... 7

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Introduction
In the current market economy, especially with strong fluctuations in the business environment and fierce
competition of businesses. This requires the increasing responsiveness of employees, an especially
important factor for business development. Therefore, the issue of human resource management is of great
importance, deciding whether a company succeeds or fails. The application of theories in human resource
management has become a foundation for the management of enterprises today. One of the most famous
and indispensable theories of human resource management is McGregor's theory X and Y derived from the
behavioral management perspective. These theories reflect two extreme belief sets that different managers
have about their workers (Griffin, 2019). These management theories are not only applied in large
corporations but also in small coffee shops, where I go to work part-time. According to my own experiences
during my work, I have clearly seen the application of both these theories by my management.

Theoretical basis
An introduction to management
Before diving into the content of each theory, we need to know about the concept of
management. Management can be defined as a set of activities (including planning and decision making,
organizing, leading, and controlling), directed at an organization's resources (human, financial, physical,
and information) with the aim of achieving organizational goals in an efficient and effective manner.

What is X-Y Theory of Management?

Douglas McGregor, an American social psychologist, proposed his famous X-Y theory in his 1960 book
'The Human Side of Enterprise'. Theory X and Theory Y are still referred to commonly in the field of
management and motivation, and whilst more recent studies have questioned the rigidity of the model,
McGregor’s X-Y Theory remains a valid basic principle from which to develop positive management style
and techniques. McGregor's XY Theory remains central to organisational development, and to improving
organisational culture. McGregor’s X-Y theory is a salutary and simple reminder of the natural rules for
managing people, which under the pressure of day-to-day business are all too easily forgotten.

McGregor’s ideas suggest that there are two fundamental approaches to managing people. Many managers
gravitate toward Theory X, and usually obtain poor results. Enlightened managers, on the other hand, use
Theory Y, which produces better performance and results. Furthermore, it allows people to grow and
develop (Businessballs, 2017).

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 A person refusing to work (“X”) and a person cheering the opportunity to work (“Y”)

Theory X
The first part of McGregor’s theory is Theory X. Douglas McGregor's Theory X outlines the traditional
perspective of management in a number of basic assumptions, the most important of which are autocratic
leadership style, strict supervision, and the hierarchical principle. Theory X starts from the assumption that
people do not like work and try to avoid it, want to avoid work as much as possible, do not wish to take
responsibility, have no ambition, and prefer to be supervised. The authoritarian leadership style, according
to Theory X, is the most appropriate leadership style. Financial incentives, according to this theory, are the
only source of pure work motivation. People do not like work, so managers have to control, direct, coerce,
and threaten employees to get them to work toward organizational goals (Griffin, 2019). Therefore,
the system of rewards and punishments works best for them. Furthermore, their tasks and how these
should be executed must be laid down in detail. According to this theory, people definitely do not wish to
bear any responsibility for their work.

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Theory Y
In contrast to theory X, Douglas McGregor introduces theory Y, in which managers have a positive attitude
toward their employees and employ a decentralized, participative management style. This motivates
managers and their team members to work together more collaboratively and trustingly (Mindtools, n.d.)

In theory Y, Douglas McGregor builds on the assumption that people have different needs. Theory Y
assumes that people do not naturally dislike work; work is a natural part of their lives, they want to exert
themselves and they are motivated to pursue objectives. They are committed to goals to the degree that they
receive personal rewards when they reach their objectives. People are prepared to take responsibility for
everything they do. People desire to express themselves creatively and solve problems in novel ways
(Kurt, 2021).

Discussion
Each company has its own organizational structure and characteristics, which leads to diverse approaches
to managing and applying the X and Y theories. It is possible that one firm will use theory X to manage its
staff, while another company would use theory Y, or that some organizations will use both X and Y at the
same time. For example, at the coffee shop where I work, the manager used the following two theories at
the same time.

Theory X
According to this theory, Douglas McGregor argues that people dislike work and attempt to avoid it as
much as possible; they do not want to accept responsibility, have no ambition, and would rather be
supervised. As a result, management has established a table of regulations outlining what is and is not
permitted in the workplace. They rigorously supervise personnel daily, and anyone who breaks one of the
tables of rules will be penalized or sacked. Aside from that, timesheets are an important tool for them to
manage their staff. The purpose of this timesheet is for managers to be able to quickly see and check how
workers work so that salaries could be calculated fairly, and errors could be minimized. Managers would
be able to tell whether or not their staff are hardworking or slackers. If an employee arrives late or does not
show up for work on a day, his or her salary will be marked and reduced. The store offers a table where
customers can rate the service level of the employees in addition to a timesheet. If employees have a bad
attitude and are dissatisfied with their work, they may evaluate or report it to the boss. Furthermore, the
coffee shop where I work sells not only drinks but also desserts that must be consumed shortly. As a result,
employees must meet KPIs in order to sell all the cakes in each day; if they do so successfully, they will be

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rewarded; otherwise, they will be compensated 15% of the cake price. People dislike working, thus
managers must exert control over, direct, compel, and threaten people to motivate them to achieve company
objectives, according to theory X, which has been applied in my store.

Consequently, Theory X operates under the principles of "rigor, discipline, and justice." From my point of
view, and when I remark on Theory X, I find that this theory has a slightly negative bias. Concerning human
one-sided and incomplete views of employees. In other words, the administrators have no faith in the
employees; instead, they have faith in the system of regulations and evaluation tables that they have
established. As a result, when a problem arises, they frequently try to blame the employee for lack of
discipline or reward. Although this idea has limitations, it is apparent that it aids managers in better
managing their workforce. If the present coffee shop where I work has ten employees and no system of
rules and standards for grading, my store manager will spend a significant amount of time and effort
managing each one. Consider how difficult it would be for a major corporation with tens of thousands of
employees. Hence, if the managers know how to use it effectively, it will make life easier for both
employees and management.

Theory Y
In management at the coffee shop where I work, they not only use Theory X, but also Theory Y. First of
all, they always value their employees' ideas and ingenuity. The management always listens to and absorbs
the employees' thoughts on the store's quality to improve and evolve in a better direction, with the mindset
of "employees as well as customers." They always encourage store staff to be innovative, give good ideas
for new drinks, and contribute suggestions for store development initiatives to boost sales. In addition, the
management throws mini parties for the shop every quarter to encourage and bring us closer together. Not
only that, but in this store, we are also allowed to review and provide comments to the manager about the
work, in addition to the management and customers evaluating how we work. Hence, managers and
employees have an influence on one another.

Theory Y, based on its primary contents, strikes me as being more positive and progressive than Theory X.
It is particularly concerned with human issues, emphasizing the importance of individuals. This view
comprehends human motivations and nature; man is not only a machine, and not everyone works for a
living. Managers must establish a pleasant and comfortable working atmosphere for employees so that they
can devote themselves fully, achieve personal goals, and then achieve the organization's objectives. Theory
Y, on the other hand, must be applied with caution; otherwise, it will cause management to become sloppy
and personnel to become unorganized.

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Conclusion
In conclusion, each theory has its own set of benefits and drawbacks. Both theories, however, are important
in management. In each case, each theory would be utilized flexibly. Because both theories are compatible,
theory Y must be skillfully combined with theory X, and balance must be known, or management may fail.
The management at the coffee shop where I work is a good example, they flexibly used both principles,
making employees like me feel fair and comfortable at work. McGregor's X and Y theories, as well as my
manager's, have gained a lot of knowledge. For the present being, these will aid me in my studies and enable
me to work more efficiently in groups. Furthermore, this will assist me in becoming a wise and trustworthy
manager in the eyes of my staff in the future.

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References
Businessballs (2017, October 29). What is X-Y Theory of Management? Www.Businessballs.Com,
viewed February 26, 2022, from https://www.businessballs.com/improving-workplace-
performance/mcgregors-xy-theory-of-management/

Griffin, R. (2019). Fundamentals of Management (9th ed.), (pp.15), Cengage Learning.

Kurt, S. (2021, October 11). Theory X and Theory Y, Douglas McGregor. Educationlibrary.Org, viewed
February 26, 2022, from https://educationlibrary.org/theory-x-and-theory-y-douglas-mcgregor/

Mindtools. (n.d.). Theory X and Theory Y: Understanding People’s Motivations.

Www.Mindtools.Com, viewed February 26, 2022, from
https://www.mindtools.com/pages/article/newLDR_74.htm