Theory X and Theory Y

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Theory X and Theory Y

Understanding People's
Motivations
• In the 1960s, social psychologist Douglas McGregor developed two
contrasting theories that explained how managers' beliefs about
what motivates their people can affect their management style.
• He labelled these Theory X and Theory Y.

• These theories continue to be important even today.


• Theory X and Theory Y were first explained by McGregor in his
book, "The Human Side of Enterprise," and they refer to two
styles of management – authoritarian (Theory X) and
participative (Theory Y).
Theory X

This style of management assumes that workers:


• Dislike their work.
• Avoid responsibility and need constant direction.
• Have to be controlled, forced and threatened to deliver work.
• Need to be supervised at every step.
• Have no incentive to work or ambition, and therefore need to
be enticed by rewards to achieve goals.
Theory Y

This style of management assumes that workers are:


• Happy to work on their own initiative.
• More involved in decision making.
• Self-motivated to complete their tasks.
• Enjoy taking ownership  of their work.
• Seek and accept responsibility, and need little direction.
• View work as fulfilling and challenging.
• Solve problems creatively and imaginatively.
Theory X and Theory Y in the
Workplace
• Most managers will likely use a mixture of Theory X and Theory Y. 

• Although both styles of management can motivate people, the


success of each will largely depend on your team's 
needs and wants  and your organizational objectives.

• You may use a Theory X style of management for new starters


who will likely need a lot of guidance, or in a situation that
requires you to take control such as a crisis .

• But you wouldn't use it when managing a team of experts , who


are used to working under their own initiative, and need little
direction. If you did, it would likely have a demotivating effect and
may even damage your relationship with them.
Theory X and Theory Y in the
Workplace
• Managers with this assumption motivate their people using a
rigid "carrot and stick" approach, which rewards good
performance and punishes poor performance.

• Managers with this assumption have a more collaborative


relationship with their people, and motivate them by allowing
them to work on their own initiative, giving them
responsibility, and empowering them to make decisions.
Some challenges of both
theories
• The restrictive nature of Theory X, for instance, could cause
people to become demotivated and non-cooperative if your
approach is too strict.
• This may lead to high staff turnover  and could damage your
reputation in the long term.

• Conversely, if you adopt a Theory Y approach that gives


people too much freedom, it may allow them to stray from
their key objectives or lose focus.
• Less-motivated individuals may also take advantage of this
more relaxed working environment by shirking their work.

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