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    Theory X Theory Y

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    Puneet

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    Theory X Theory Y

    Uploaded by

    Puneet
    7 views3 pages

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    Download as pptx, pdf, or txt
    7 views3 pages

    Theory X Theory Y

    Uploaded by

    Puneet

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 3

    Theory X & Theory Y

    In 1960, Douglas McGregor formulated Theory X and Theory Y suggesting two aspects of human
    behaviour at work, or in other words, two different views of individuals (employees):
    • one of which is negative, called as Theory X and
    • the other is positive, so called as Theory Y
    According to McGregor, the perception of managers on the nature of individuals is based on
    various assumptions.
    Assumptions of Theory X
    • An average employee intrinsically does not like work and tries to escape it whenever possible.
    • Since the employee does not want to work, he must be persuaded, compelled, or warned with
    punishment so as to achieve organizational goals. A close supervision is required on part of
    managers. The managers adopt a more dictatorial style.
    • Many employees rank job security on top, and they have little or no aspiration/ ambition.
    • Employees generally dislike responsibilities.
    • Employees resist change.
    • An average employee needs formal direction.
    Assumptions of Theory Y
    • Employees can perceive their job as relaxing and normal. They exercise their physical and mental efforts
    in an inherent manner in their jobs.
    • Employees may not require only threat, external control and coercion to work, but they can use self-
    direction and self-control if they are dedicated and sincere to achieve the organizational objectives.
    • If the job is rewarding and satisfying, then it will result in employees’ loyalty and commitment to
    organization.
    • An average employee can learn to admit and recognize the responsibility. In fact, he can even learn to
    obtain responsibility.
    • The employees have skills and capabilities. Their logical capabilities should be fully utilized.
    • In other words, the creativity, resourcefulness and innovative potentiality of the employees can be
    utilized to solve organizational problems.
    • Theory Y implies that the managers should create and encourage a work environment which provides
    opportunities to employees to take initiative and self-direction. Employees should be given opportunities
    to contribute to organizational well-being.
    • Theory Y encourages decentralization of authority, teamwork and participative decision making in an
    organization.
    • Theory Y searches and discovers the ways in which an employee can make significant contributions in an
    organization. It harmonizes and matches employees’ needs and aspirations with organizational needs
    • Thus, we can say that Theory X presents a pessimistic view of employees’ nature
    and behaviour at work, while Theory Y presents an optimistic view of the
    employees’ nature and behaviour at work.
    • If we correlate it with Maslow’s theory, we can say that Theory X is based on the
    assumption that the employees emphasize on the physiological needs and the
    safety needs; while Theory X is based on the assumption that the social needs,
    esteem needs and the self-actualization needs dominate the employees.
    • McGregor views Theory Y to be more valid and reasonable than Theory X. Thus,
    he encouraged cordial team relations, responsible and stimulating jobs, and
    participation of all in decision-making process

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