Theory X explains the importance of heightened supervision, external rewards, and penalties, while Theory Y highlights the motivating role of job satisfaction and encourages workers to approach tasks without direct supervision. Managerial Functions in the International Organization. Make team leaders aware of the negative consequences of the Theory X management style and the positive consequences of the Theory Y management style. Theory X is a common management method that focuses on supervision and strict monitoring of employees. [14] Mission Command, for example, is a command philosophy to which many modern military establishments aspire, and which involves individual judgment and action within the overall framework of the commander's intent. Each assumes that the managers role is to organize resources, including people, to best benefit the company. A directive autocrat retains power, makes unilateral decisions, and closely supervises workers activities. The idea that a managers attitude has an impact on employee motivation was originally proposed by Douglas McGregor,a management professor at the Massachusetts Institute of Technology during the 1950s and 1960s. Although born and educated in America, Ouchi was of Japanese descent and spent a lot of time in Japan studying the countrys approachto workplace teamwork and participative management. Answer the question(s) below to see how well you understand the topics covered above. [3] Maslow's hierarchy of needs consists of physiological needs (lowest level), safety needs, love needs, esteem needs, and self-actualization (highest level). Read them well and, normally, they'll feel confident taking direction under the parameters of X and Y. They'll understand your expectations and feel motivated - those two things promote happiness at work and contribute to wellbeing. Proc. However, because there is no optimal way for a manager to choose between adopting either Theory X or Theory Y, it is likely that a manager will need to adopt both approaches depending on the evolving circumstances and levels of internal and external locus of control throughout the workplace. Research suggests that rationality is the most effective influence tactic in terms of its impact on follower commitment, motivation, performance, satisfaction, and group effectiveness.30. and you must attribute OpenStax. Sometimes these powers lead to follower performance and satisfaction, yet they also sometimes fail. Some critics believe that current methods of measuring unemployment are inaccurate in terms of the impact of unemployment on people as these methods do not take into account the 1.5% of the available working population incarcerated in US prisons (who may or may not be working while they are incarcerated); those who have lost their jobs and have . In this capacity, leadership can be seen as a differentiated role and the nucleus of group activity. C.employees are motivated mainly by the chance for advancement and recognition.D.job satisfaction is primarily related to higher-order needs. Self-determination Theory Self-determination theory suggests that people are motivated to grow and change by three Which of the following is a behavior that would most likely b If you believe that your team members dislike work and have little natural motivation to do a good job, then according to McGregor, you likely use an authoritarian style of management. Theory X managers believe all actions should be traceable to the individual responsible. This theory states that managers evaluate the workplace and choose their leadership style based upon both internal and external conditions presented. One psychologist, Douglas McGregor, categorized people's motivations into two broad categories: Theory X and Theory Y. job satisfaction is primarily related to higher order needs. You lead people.23 Informal leaders often have considerable leverage over their colleagues. It helped me pass my exam and the test questions are very similar to the practice quizzes on Study.com. Its like a teacher waved a magic wand and did the work for me. It refers to the management style that believes in authoritarian and controlling behavior. The theory X and Y leadership model was developed 50 years ago and has been validated by modern research. As a result, they think that team members need to be prompted, rewarded or punished constantly to make sure that they complete their tasks. On this Wikipedia the language links are at the top of the page across from the article title. The rationale for the drawn-out time frame is that it helps develop a more dedicated, loyal, and permanent workforce, which benefits the company; the employees, meanwhile, have the opportunity to fully develop their careers at one company. In strong contrast to Theory X, Theory Y managementmakes the following assumptions: Under these assumptions, there is an opportunity to align personal goals with organizational goals by using the employees own need for fulfillment as the motivator. Management Styles Theories, Types & Examples | What is Management Style? Theory Y managers appeal to a higher level of motivation on Maslows famous Hierarchy of Needs, capitalizing on the human need for esteem and self-actualization. Employees are initially obedient, but eventually dissatisfied and even rebellious, driving down productivity and achieving contradictory outcomes, further reinforcing the belief that workers are lazy and have to be externally motivated. They were created by Douglas McGregor while he was working at the MIT Sloan School of Management in the 1950s, and developed further in the 1960s. About 1015 years ago, power and leadership once again shifted, this time to people with finance and legal backgrounds, because the critical contingencies facing many organizations were mergers, acquisitions, hostile takeovers, and creative financing. Managers following Theory Y believe that employees are willing to work and put effort into their performances. He would try to constantly control the employees, leading to resentment and exhaustion in the employees, leading to a turnover. Accountability from employees is needed (Theory X) and flexibility and creativity is needed as well (Theory Y). [4] This led companies to focus on how their employees were motivated, managed, and led, creating a Theory Y management style which focuses on the drive for individual self-fulfillment. B. most workers know more about their job than the boss. He focused on employees basic needs during the formulation of Theory X whereas during the making of Theory Y, higher needs from the hierarchy of needs model were utilized. Informal leaders are acknowledged by the group, and the group willingly responds to their leadership. Coercive power can result in favorable performance, yet follower and resistance dissatisfaction are not uncommon. Use this quiz to check your understanding and decide whether to (1) study the previous section further or (2) move on to the next section. 22nd International Command and Control Research and technology Symposium (ICCRTS). Theory X managers are likely to believe that employees are lazy, fear-motivated, and in need of constant direction. [4] McGregor's perspective places the responsibility for performance on managers as well as subordinates.[5]. It follows the idea that there is no single way to organize a company or make decisions. Theory X management hinders the satisfaction of higher-level needs because it doesn't acknowledge that those needs are relevant in the workplace. The capacity for creativity spreads throughout organizations. They also dislike change and tend to resist it at all costs. These managers view their employees as one of the most valuable assets to the company, driving the internal workings of the corporation. As a Theory X manager, Xavier believes that his workers: Hate the idea of having to go to work and do so only to earn a paycheck and the security that it offers. Hate the idea of having to go to work and do so only to earn a paycheck and the security that it offers. A surgeon might allow the entire surgical team to participate in developing a plan for a surgical procedure. Reward and legitimate power (that is, relying on ones position to influence others) produce inconsistent results. O most employees know more about their job than the boss. Here, managers see employees as lazy and not proactive towards their work. Leaders who rely on reward power develop followers who are very measured in their responses to [what? In actual practice, most managers today practice a combination of Theory X and Theory Y styles of management. Plus, get practice tests, quizzes, and personalized coaching to help you The employee dislikes working, is not motivated enough and thus avoids working, whenever there is an opportunity. At Quad/Graphics, president Harry V. Quadracci is a permissive democrat because he encourages all Quad employees to play a major role in decision-making and execution as they manage their teams as independent profit centers. These managers tend to be more present in entry-level jobs where productivity and process are favored over independence or innovation, but they may show up at any company level and in any industry. Pacesetting Leadership: What It Is and When to Use It, 3 Leadership Principles to Foster Team Success, The 4 phases of the project management life cycle, The go-to toolkit for effortless documentation. The control and coercion involved in this style of management could lead to employee frustration, de-motivate employees and damage relationships within the organization. The modern manager knows how to distribute responsibility, instill trust in their employees, and motivate team members to deliver their best work and ideas. As a member, you'll also get unlimited access to over 84,000 The managers influenced by Theory X believe that everything must end in blaming someone. Theory X. Theory Zalso makes assumptions about company culture. CRC Press; New York; pp. It includes a trusting, collaborative and positive relationship between the manager and employees. While these contrasting management styles might be easily recognizable in todays technology-driven world, they were novel thoughts at one point, developed through research and observation by a workplace thought leader. The Theory Y managers believe their role is to help develop an employee's potential so that s/he can work towards common organizational goals. Theory X and Y: An overview. Informal leaders, by contrast, are not assigned by the organization. Although Theory Y encompasses creativity and discussion, it does have limitations. The Situational Leader: Overview & Examples | What is a Situational Leader? The manager would use promotions, incentives, the threat of firing or cutting off pay to motivate employees to put effort or work. [6], The soft approach is characterized by leniency and less strict rules in hopes for creating high workplace morale and cooperative employees. Theory X represents a negative view of human nature that assumes individuals generally dislike work, are irresponsible, and require close supervision to do their jobs. People must be constantly directed, prompted, rewarded, or punished in order to complete their work. Thus, Salancik and Pfeffer reason that power and thus leadership flow to those individuals who have the ability to help an organization or group [overcome its critical contingencies]. c. employees are motivated mainly by the chance for advancement and recognition. Managers who choose the Theory X approach have an authoritarian style of management. Theory X managers tend to take a pessimistic view of their people, and assume that they are naturally unmotivated and dislike work. According to McGregor, Theory X managementassumes the following: Essentially, Theory X assumes that the primary source of employee motivation is monetary, with security as a strong second. In the 1950s, Tannenbaum and Schmidt created a continuum (see Exhibit 13.6) along which leadership styles range from authoritarian to extremely high levels of worker freedom.34 Subsequent to Tannenbaum and Schmidts work, researchers adapted the continuum by categorizing leader power styles as autocratic (boss-centered), participative (workers are consulted and involved), or free-rein (members are assigned the work and decide on their own how to do it; the leader relinquishes the active assumption of the role of leadership).35. Question: Theory X managers are likely to believe thata. In many instances, people are put into positions of leadership by forces outside the group. Theory of X and Y is a theory on human work and motivation developed by Douglas McGregor. They think most employees are only out for themselves and their sole interest in the job is to earn money. Managers in newer organizations use this theory as now, people want more than monetary rewards and control. Gerald Salancik and Jeffrey Pfeffer observe that power to influence others flows to those individuals who possess the critical and scarce resources (often knowledge and expertise) that a group needs to overcome a major problem.24 They note that the dominant coalition and leadership in American corporations during the 1950s was among engineers, because organizations were engaged in competition based on product design. McGregor stressed that Theory Y management does not imply a soft approach. Theory Y, on the other hand, presents a positive view of human . This generally involves a more 'hands-on' approach and inevitably micromanaging your team's workload to ensure it is done to . He would hierarchically arrange the job roles with several supervisors for different departments, looking over employees. He was particularly interested in what motivates people to work hard, in particular on what belief systems motivate people to work hard. Many workplaces originally utilized Theory X, which believes that employees are lazy and unproductive. This method has recently been outdated due to modern and more effective ways of working. And the most lauded skills, especially in leadership, lie in the ability to connect seemingly disparate ideas and communicate those ideas clearly. B.most employees know more about their job than the boss. Often, the formal leader is appointed by the organization to serve in a formal capacity as an agent of the organization. This allows the individual to receive either a direct reward or a reprimand, depending on the outcome's positive or negative nature. Most people are not ambitious, have little desire for responsibility, and prefer to be directed. d. job satisfaction is primarily related to higher order needs. Get unlimited access to over 84,000 lessons. 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Here, managers see employees as responsible and proactive. Several assumptions form the basis for this theory. The answer often is that a leaders social influence is the source of his power. b.employees are motivated mainly by the chance for advancement and recognition. As an Amazon Associate we earn from qualifying purchases. Instead, McGregor feels that an approach located in the middle would be the most effective implementation of Theory X.[7]. People will be committed to their quality and productivity objectives if rewards are in place that address higher needs such as self-fulfillment. Accept work as a normal part of their day, and it's right next to recreation and rest. "C2 Re-Envisioned: the Future of the Enterprise." So grab your bomb repellent while we explore these two different types of managers by discussing the assumptions of each. Lucidchart is the intelligent diagramming application that empowers teams to clarify complexity, align their insights, and build the futurefaster. This is much more likely to happen when the leaders influence flows out of intrinsic such as rationality, expertise, moralistic appeal, and/or referent power. This style of leadership is seen as appropriate when circumstances require quick decisions and organizational members are new, inexperienced, or underqualified. In the 1970s, 1980s, and 1990s, McGregor's conceptualization of Theory X and Theory Y were often used as the basis for discussions of management style, employee involvement, and worker motivation. This is a positive view of the nature of workers. A compliment or reward from a person we like generally has greater value than one from someone we dislike, and punishment from someone we love (such as tough love from a parent) is less offensive than the pain inflicted by someone we dislike.31. [10] In comparison to Theory X, Theory Y incorporates a pseudo-democratic environment to the workforce. In contrast, Theory Y leaders believe that people have creative capacities, as well as both the ability and desire to exercise self-direction and self-control. Some people prefer micromanaging and leading, and some people prefer giving space. As the challenges facing a group change, so too may the flow of power and leadership. A Theory X management style may be well-suited for this type of structured, process-driven workplace. Because of this, a Theory X approach may be necessary although I believe it's best to give people the benefit of the doubt and go with a more empowering approach to begin with. 5. Research indicates that people are unlikely to follow individuals who, for example, do not display drive, self-confidence, knowledge of the situation, honesty, and integrity. Based on these factors, it is easy to see how Theory X differs from Theory Y and easy to imagine their potential outcomes in the workplace. But how do leaders effectively exercise this influence? A variety of processes help us understand how leaders emerge. McGregor called this Theory X. The secret to their success was not what they were producing but how they were managing their peopleJapanese employees were engaged, empowered, and highly productive. They are self-centered and care only about themselves and not the organization or its goals, making it necessary for a manager to coerce, control, direct or threaten with punishment in order to get them to work towards organizational goals. 1999-2023, Rice University. Previous post: Improving Problem Solving Skills. It is believed that managers who adopted theory X produce poor results while managers who take theory Y are likely to deliver better . job satisfaction is primarily related to higher-order needs. Managers following Theory X can be pessimistic and orthodox in their approach and be prone to assume that employees are not interested in their work and need to be pushed. They are not inherently irresponsible or lazy. Are inherently lazy, lack. Most people can handle responsibility because creativity and ingenuity are common in the population. I think there is a little misconception here. [7] Implementing a system that is too soft could result in an entitled, low-output workforce. Leonard Bernstein was part of the symphony, but his role as the New York Philharmonic conductor differed dramatically from that of the other symphony members. d. job satisfaction is primarily related to higher-order needs. O most employees know more about their job than the boss. [4] The workplace lacks unvarying rules and practices, which could potentially be detrimental to the quality standards of the product and strict guidelines of a given company. The use of rationality, expert power, and/or moralistic appeal generally elicits commitment and the internalization of the leaders goals.29, Leaders who use referent and expert power commonly experience a favorable response in terms of follower satisfaction and performance. It would be beneficial to use both theories in moderation to ensure productivity and discipline in an organization. However, high-involvement organizations frequently encourage their formal and informal leaders to exercise the full set of management roles. How do leaders influence and move their followers to action? a Theory X Manager typically believes their staff: dislike their work / are lazy cannot be trusted need to be closely supervised / micro-managed dislike or avoid responsibility have no inherent incentive or desire to work lack ambition work only for pay or because they have to have to be driven by rewards or punishment Self-actualization and creativity were given importance in Theory Y. [8] This approach is derived from Fred Fiedler's research over various leadership styles known as the contingency theory. Theory Y managers favor a more collaborative approach, centering their leadership on trust, valuing creative problem solving, and managing by way of providing their employees with tools, opportunities, and visibility to do their jobs well. workers must be controlled in order to achieve a company's goalsb. As soon as that need is satisfied, the employees have no additional motivation for coming to work. Once those needs have been satisfied, the motivation disappears. Different situations call for different configurations of knowledge, skills, and abilities. People will use work to satisfy their lower needs and seek to satisfy their higher needs during their leisure time. Most managers will likely use a mixture of Theory X and Theory Y. The Theory X leader assumes that the average individual dislikes work and is incapable of exercising adequate self-direction and self-control. 9899. As a result, they think that team members need to be prompted, rewarded or punished constantly to make sure that they complete their tasks. Overall leader effectiveness will be higher when people follow because they want to follow. Therefore, Xavier believes his role as a manager is to coerce and control his employees to work towards organizational goals. Using this theory in these types of work conditions allows employees to specialize in particular work areas which in turn allows the company to mass-produce a higher quantity and quality of work. [7] McGregor believes both ends of the spectrum are too extreme for efficient real-world application. Just like formal leaders, informal leaders can benefit or harm an organization depending on whether their influence encourages group members to behave consistently with organizational goals. This is a participative management style that gives rise to a more collaborative work environment, whereas theory X leads to micromanaging. D. job satisfaction is primarily related to higher order needs. [7] The hard approach depends on close supervision, intimidation, and immediate punishment. Evidence suggests that managers from different parts of the global community commonly hold the same view. It can be difficult for organizations and employees to make life-time employment commitments. According to McGregor, there are two opposing approaches to implementing Theory X: the hard approach and the soft approach. b. most employees know more about their job than the boss. These credits give the individual a status that allows him to influence the direction that the group takes as it works to achieve its goals.27. Consider these assumptions from the different managerial styles: Most people find happiness in hard work under the right conditions. Managers who assume employees are apathetic or dislike their work use theory X, which is authoritarian. Organizations have two kinds of leaders: formal and informal. He explained this concept in his book "The Human side of Enterprise". A lot of control and supervision could lead to resentment and will not help in facilitating innovative or creative ideas. X managers is an impediment to employee morale and productivity X managers believe it is his/her job to structure the work and energize, even coerce (threaten with punishment) the. Practically all managers act as formal leaders as part of their assigned role. Here, leaders act as facilitators, process consultants, network builders, conflict managers, inspirationalists, coaches, teachers/mentors, and cheerleaders.40 Such is the role of Ralph Stayer, founder, owner, and CEO of Johnsonville Foods. The employees could prefer responsibility and show willingness, depending on their traits. [4] Assumptions of Theory Y, in relation to Maslow's hierarchy put an emphasis on employee higher level needs, such as esteem needs and self-actualization. Theory X starts from the assumption that people are naturally lazy, want to avoid work as much as possible, do not wish to take responsibility, have no . Jack Welch was the formal leader of General Electric, and Leonard Bernstein was the formal leader of the symphony. Theory X managers are likely to believe that: a. the average employee dislikes work and will seek to avoid it when possible. When this persons role is sanctioned by the formal organization, these team leaders become formal leaders.