An error occurred trying to load this video. The Situational Leader: Overview & Examples | What is a Situational Leader? McGregor makes the point that a command-and-control environment is not effective because it relies on lower needs for motivation, but in modern society those needs are mostly satisfied and thus are no longer motivating. Discover each theory and the respective qualities of each, as well as how self-fulfilling prophecies come into play for managers. [4] He theorized that the motivation employees use to reach self-actualization allows them to reach their full potential. An optimal managerial style would help cultivate worker creativity, insight, meaning and moral excellence. [4], McGregor also believed that self-actualization was the highest level of reward for 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. As such, it is these higher-level needs through which employees can best be motivated. Theory X managers are likely to believe that Select one: a. the average person dislikes work and will seek to avoid it when possible. While money may not be the most effective way to self-fulfillment, it may be the only way available. All rights reserved. In the 1960s, social psychologist Douglas McGregor developed Theory X and Theory Y to explain how managers' beliefs about what motivates their employees can influence their management style. The Theory X leader assumes that the average individual dislikes work and is incapable of exercising adequate self-direction and self-control. In 1960, Douglas McGregor published two theories (Theory X & Theory Y) of employee motivation based on the assumptions that managers make about employees. What is the role of the leader and follower in the leadership process? In modern days and times, Theory Y works more effectively. [6] Managers are always looking for mistakes from employees, because they do not trust their work. Some employees may take advantage of this freedom and not meet their work objectives. Reason In theory X, the manager believes that employees are lazy, and they avoid doing work properly. Ouchis Theory Z makes certain assumptions about workers. He would try to constantly control the employees, leading to resentment and exhaustion in the employees, leading to a turnover. They're full of potential, and it's through their own. The control and coercion involved in this style of management could lead to employee frustration, de-motivate employees and damage relationships within the organization. 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. Here, managers see employees as lazy and not proactive towards their work. Many consider such actions necessary for self-managing work teams to succeed. One of his colleagues, Riya, believes that he is a diligent worker and gains satisfaction through working hard. Theory Y managers gravitate towards relating to the worker on a more personal level, as opposed to a more conductive and teaching-based relationship. This theory is hinged on the idea that employees need strict guidance and tight management regarding assignments, and specific consequences for failing to meet company expectations. One view holds that in traditional organizations members expect to be told what to do and are willing to follow highly structured directions. When employees rise to a higher level of management, it is expected that they will use Theory Z to bring up, train, and develop other employees in a similar fashion. Try refreshing the page, or contact customer support. B employees are primarily motivated by opportunities for advancement and recognition. This theory has also been criticized for being too idealistic and unachievable by some critics. Emergent leaders, on the other hand, arise from the dynamics and processes that unfold within and among a group of individuals as they endeavor to achieve a collective goal. As a consequence, they exert a highly controlling leadership style. In his 1960 book, The Human Side of Enterprise, McGregor proposed two theories by which managers perceive and address employee motivation. 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. Managers may prefer one theory over the other; it depends on individual trait differences. 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. [7] McGregor believes both ends of the spectrum are too extreme for efficient real-world application. His ideas gained most of their momentum in the 1960s, when the American and Western workforce was at a crucial transition from factory work of the Industrial Revolution to more collaborative technology-centered teamwork, aided no doubt by the Womens Labor Movement and the dawn of computing technology. 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. McGregor's Theory X and Theory Y is about judging the needs and character of your people. And the most lauded skills, especially in leadership, lie in the ability to connect seemingly disparate ideas and communicate those ideas clearly. He has now replaced the empty chair with Amazon employees with the job title Customer Experience Bar Raisers. [6] Managers who believe employees operate in this manner are more likely to use rewards or punishments as motivation. This is a positive view of the nature of workers. They can only work under fear, and proper supervision. It is important to recognize that the traits possessed by certain individuals contribute significantly to their emergence as leaders. Informal leaders are acknowledged by the group, and the group willingly responds to their leadership. d. job satisfaction is primarily related to higher order needs. Another colleague, Joseph, sees him as a worker who performs just for the sake of money. I think there is a little misconception here. Its assumptions about the value of individual initiative make it more a Theory-Y than a Theory X philosophy.[15]. Leaders hold a unique position in their groups, exercising influence and providing direction. The benefits of Theory Z, Ouchi claimed, would bereduced employee turnover, increasedcommitment, improvedmorale and job satisfaction, and drastic increases in productivity. Theory X Group aspire to achieve personal gains without contributing positively; Theory Y Group are optimistic in reaching personal goals through active participatory engagement. Management professor William Ouchi argued that Western organizations could learn from their Japanese counterparts. He mentioned Theory X and Theory Y in his book, The Human Side of Enterprise, published in 1960. People are motivated when they find value in their contributions and see an opportunity to realize their own potential. Two reasons: (1) high-quality products and (2) low prices. Todays digital workplace, however, is a place of collaboration. 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. Except where otherwise noted, textbooks on this site C. employees are motivated mainly by the chance for advancement and recognition. This style of leadership is seen as appropriate when circumstances require quick decisions and organizational members are new, inexperienced, or underqualified. I highly recommend you use this site! Basically, Theory X managers believe that people don't want to work, don't enjoy working, and are only motivated by money. Theory Y managers will make different choices about how to arrange team members and workflows, how to talk to people, how to reward and incentivize, etc. 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. He explained this concept in his book "The Human side of Enterprise". Organizations that use self-managed work teams allow members of the team to select the individual who will serve as their team leader. Theory X managers tend to take a pessimistic view of their people, and assume that they are naturally unmotivated and dislike work. Learn about motivation in the workplace . Creativity and problem-solving thrive when employees are trusted. 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. http://www.envisionsoftware.com/articles/Theory_X.html, https://pixabay.com/en/idea-businessman-man-outline-suit-1460935/, http://vle.du.ac.in/mod/book/view.php?id=8344&chapterid=10377, CC BY-NC-SA: Attribution-NonCommercial-ShareAlike, https://commons.wikimedia.org/wiki/File:Toyota_Plant_Ohira_Sendai.jpg. The Theory X manager assumes employees hate the idea of having to go to work and do so only to earn a paycheck and the security it offers. Proc. They also dislike change and tend to resist it at all costs. [3] Maslow's hierarchy of needs consists of physiological needs (lowest level), safety needs, love needs, esteem needs, and self-actualization (highest level). One assumption is that theyseek to build cooperative and intimate working relationships with their coworkers. 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]. Some people prefer micromanaging and leading, and some people prefer giving space. They can use self-direction and self-control in this aspect. The manager would use promotions, incentives, the threat of firing or cutting off pay to motivate employees to put effort or work. Dec 12, 2022 OpenStax. As such, McGregor acknowledged both types of managers as being a legitimate means of motivating employees, but he felt that you would get much better results through the use of Theory Y rather than Theory X. Douglas McGregor believed that there were two types of managers: Theory X and Theory Y. This paper addresses both theories X and Y of Mc Gregor in economic crisis, where X is the one that might get the poor results focusing on instrumental, physiological values comparing to theory Y where managers are effective . Self-actualization and creativity were given importance in Theory Y. However, McGregor asserts that neither approach is appropriate, since the basic assumptionsof Theory X are incorrect. 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. O most employees know more about their job than the boss. 147 lessons Want to cite, share, or modify this book? The managers influenced by Theory X believe that everything must end in blaming someone. 277. The two theories divide employees; those that inherently dislike work and those that inherently do like work. As a result, they must be closely controlled and often coerced to achieve organizational objectives. As a result of this members contributions to the groups goals, he has accumulated idiosyncrasy credits (a form of competency-based status). Overall leader effectiveness will be higher when people follow because they want to follow. Creative Commons Attribution License B. most employees know more about their job than the boss. They need an interactive and safe environment with opportunities for growth, learning and creativity. They do not always need coercion, incentives or force to complete their work. This allows the individual to receive either a direct reward or a reprimand, depending on the outcome's positive or negative nature. According to Theory Z, people want tomaintain a work-life balance, and they value a working environment in which things like family, culture, and traditions are considered to be just as important as the work itself. Theory X vs Theory Y Managers| Douglas McGregor's Management Theory, Douglas McGregor's Motivation & Management Theories, Adair's Action-Centered Leadership Theory. b. most employees know more about their job than the boss. Finally, the permissive democrat shares power with group members, soliciting involvement in both decision-making and execution. Jack Welch was the formal leader of General Electric, and Leonard Bernstein was the formal leader of the symphony. Reward and legitimate power (that is, relying on ones position to influence others) produce inconsistent results. So grab your bomb repellent while we explore these two different types of managers by discussing the assumptions of each. Managers following Theory Y believe that employees are willing to work and put effort into their performances. This method has recently been outdated due to modern and more effective ways of working. If you agree with Riya, you will likely agree with Theory Y, which refers to a more participative style of managing. The Theory X leader assumes that the average individual dislikes work and is incapable of exercising adequate self-direction and self-control. 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. 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. "Theory X and Theory Y, Douglas McGregor", "Employee Management: Are You X or Are You Y", "Theory X and Theory Y: Understanding People's Motivations", A diagram representing Theory X and Theory Y, Another diagram representing Theory X and Theory Y, https://en.wikipedia.org/w/index.php?title=Theory_X_and_Theory_Y&oldid=1136635549, Creative Commons Attribution-ShareAlike License 3.0, This page was last edited on 31 January 2023, at 10:10. Ouchis theory first appeared in his 1981 book, Theory Z: How American Management Can Meet the Japanese Challenge. 4. If Theory Y holds true, an organization can apply the followingprinciples of scientific management to improve employee motivation: If properly implemented, such an environment canincrease and continually fuelmotivation as employees work to satisfy their higher-level personal needs through their jobs. b.employees are motivated mainly by the chance for advancement and recognition. It refers to the management style that follows a more participative, interactive and optimistic approach. d. job satisfaction is primarily related to higher order needs. Back in the 1950s and 60s, MIT School of Management student Douglas McGregor published a theory on different types of workers. Theory X and Theory Y represent two sets of assumptions about human nature and human behavior that are relevant to the practice of management. Theory Y, on the other hand, presents a positive view of human . Evidence suggests that managers from different parts of the global community commonly hold the same view. Intervention of the management is considered to be important to deal with passive, resistant workers. Drawing on Maslows hierarchy of needs, McGregor argues that a need, once satisfied, no longer motivates. C.employees are motivated mainly by the chance for advancement and recognition.D.job satisfaction is primarily related to higher-order needs. This could lead to more turnover and absenteeism. Theory X managers tend to take a pessimistic view of their people, and assume that they are naturally unmotivated and dislike work. We use cookies to ensure that we give you the best experience on our website. Since the employee is not responsible to work willingly, he or she must be motivated with the rewards and incentives, prompted, punished, coerced or forced into working. This management style assumes that the typical worker has little ambition, avoids responsibility, and is individual-goal oriented. Leaders who rely solely on their legitimate power and authority seldom generate the influence necessary to help their organization and its members succeed. The informal leader is that individual whom members of the group acknowledge as their leader. It refers to the management style that believes in authoritarian and controlling behavior. The employees do not dislike work and it can be a source of satisfaction or joy for them. Enrolling in a course lets you earn progress by passing quizzes and exams. [2] It is important to note, however, that before an employee carries out their task, they must first obtain the manager's approval. Theory X, although outdated, is still used in larger firms, wherein a higher number of people are employed and deadlines are to be met. This led them to use rewards and punishment as their primary means to motivate employees. The employees are full of potential, and it is through their own creativity, ingenuity and imagination that organizational goals are met. A lot of young entrepreneurs do not keep hierarchical within their company and believe in the willingness and interest of their employees. The capacity for creativity spreads throughout organizations. People are self-motivated and embrace responsibility. They can be motivated internally to complete their tasks and not always need supervision or micromanaging. And the approach to and requirements of leadership are changing with it. These differing management styles have been coined in the academic management community as Theory X and Theory Y. Lets break each down and see how they apply in the workplace. Theory X managers are likely to believe that employees are lazy, fear-motivated, and in need of constant direction. The employees could prefer responsibility and show willingness, depending on their traits. lessons in math, English, science, history, and more. Theory Y is based on positive assumptions regarding the typical worker. McGregor called this Theory X. Also sharing power is the directive democrat, who encourages participative decision-making but retains the power to direct team members in the execution of their roles. As a result, the only way that employees can attempt to meet higher-level needs at work is to seek more compensation, so, predictably, they focus on monetary rewards. In the process of building their power base, effective leaders have discovered that the use of coercive power tends to dilute the effectiveness of other powers, while the development and use of referent power tends to magnify the effectiveness of other forms of power. The power base in many organizations shifted to marketing as competition became a game of advertising aimed at differentiating products in the consumers mind. Most people can handle responsibility because creativity and ingenuity are common in the population. The hard approach to motivation relies on coercion, implicit threats, micromanagement, and tight controls essentially an environment of command and control. During the 1980s, American business and industry experienceda tsunami of demand for Japanese products and imports, particularly in the automotive industry. Theory X managers are likely to believe that: A. the average person dislikes work and will seek to avoid it when possible. Theory X managers are likely to believe that employees are lazy, fear-motivated, and in need of constant direction. Theory Y managers assume employees are internally motivated, enjoy their job, and work to better themselves without a direct reward in return. then you must include on every physical page the following attribution: If you are redistributing all or part of this book in a digital format, Theory X and Y: An overview. 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. Henry comes to work regularly on time and his performance has been consistent. When I say X, I don't mean the type that marks a treasure - in fact, quite the opposite is true. OpenStax is part of Rice University, which is a 501(c)(3) nonprofit. He was one of the most impactful, popular writers in the management field and is credited for modern management thinking. Douglas McGregor introduced Theory X and Theory Y to explain different styles of management. The Japanese had discovered something that was givingthem the competitive edge. [4] McGregor's perspective places the responsibility for performance on managers as well as subordinates.[5]. b.employees are motivated mainly by the chance for advancement and recognition. Besides conducting the orchestra, he created a vision for the symphony. It views job rotations and continual training as a means of increasing employees knowledge of the company and its processes while buildinga variety of skills and abilities. Are inherently lazy, lack ambition and prefer to be directed on what to do rather than assume responsibility on their own. Interactive, participative style of managing. 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. Both theories are mostly used as a mixture in organizations and workplaces. 9899. Once those needs have been satisfied, the motivation disappears. [8] This approach can potentially yield a hostile, minimally cooperative workforce and resentment towards management. He would hierarchically arrange the job roles with several supervisors for different departments, looking over employees. In other words, employees have a strong desire for affiliation. Lucidchart makes it easy to share processes, information, and ideas with a team from a single centralized location. McGregor (1960) proposed two models "Theory X and Theory Y", which he devised to describe two contrasting beliefs that managers hold about their paid workers. The impression that a manager makes a personal assumptions of employees attitudinal bias concerning their involvement in work activities is out of place. Elton Mayo's Theory of Management |Overview & History, Charisma in Leadership | Charismatic Examples & Theory. In sum, one key to effective leadership, especially as it pertains to the exercise of social and interpersonal influence, relates to the type of power employed by the leader. Another assumption is that workers expect reciprocity and support from the company. "C2 Re-Envisioned: the Future of the Enterprise." The answer often is that a leaders social influence is the source of his power. B.most employees know more about their job than the boss. But how do leaders effectively exercise this influence? [7] Implementing a system that is too soft could result in an entitled, low-output workforce. Management believes employees' work is based on their own self-interest. McGregor proposed that there were two types of managers: ones who assumed a negative view of their employees, also known as the Theory X managers, and others who assumed a positive view of workers, or the Theory Y managers. Theory X management hinders the satisfaction of higher-level needs because it doesn't acknowledge that those needs are relevant in the workplace. [3] According to Maslow, a human is motivated by the level they have not yet reached, and self-actualization cannot be met until each of the lower levels has been fulfilled. consent of Rice University. McGregor cautioned both types of managers against what he called self-fulfilling prophecies, whereby an employee will act just as the manager assumed he or she would due to the manager's own actions and behaviors. The worker here is considered to be mature. Theory X managers believe all actions should be traceable to the individual responsible. He believed that workers who were continuously being treated as robots with no thinking ability, at one point eventually start behaving like robots. According to the Theory of X and Y, there are 2 categories of managers . 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. Traditionally, the roles of informal leaders have not included the total set of management responsibilities because an informal leader does not always exercise the functions of planning, organizing, directing, and controlling. All other trademarks and copyrights are the property of their respective owners. They are not inherently irresponsible or lazy. Are self-centered and care only about themselves and not the organization (or its goals), making it necessary for the manager to coerce, control, direct or threaten with punishment in order to get them to work towards organizational goals. How do the theories of Tannenbaum and Schmidts leadership continuum and McGregors Theory X and Theory Y attempt to define leadership? Its like a teacher waved a magic wand and did the work for me. As a Theory X manager, Xavier believes that his workers: Xavier assumes that his employees show up for work for their paycheck and the security that a regular, paying job offers. Theory X managers tend to take a pessimistic view of their people, and assume that they are naturally unmotivated and dislike work. In this capacity, leadership can be seen as a differentiated role and the nucleus of group activity. Theory Y managers are likely to believe that employees are motivated by the value of their contribution. This approach is usually taken by managers working in older companies and firms. | 10 As a member, you'll also get unlimited access to over 84,000 This suggests that a leader may use and employ power in a variety of ways. Their involvement in both decision-making and execution best be motivated internally to complete their work in an,! 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To recognize that the motivation employees use to reach their full potential or force to their... Must end in blaming someone and intimate working relationships with their coworkers to resentment and exhaustion in the employees prefer... Motivation disappears a worker who performs just for the sake of money digital workplace, however, is a worker... In an entitled, low-output workforce & Examples | what is a 501 ( c ) ( 3 nonprofit. Assumes that the traits possessed by certain individuals contribute significantly to their emergence as leaders longer. Interest of their respective owners with no thinking ability, at one point eventually behaving. Structured directions worker has little ambition, avoids responsibility, and is oriented... Places the responsibility for performance on managers as well as subordinates. [ 15 ] depends. The chance for advancement and recognition they are naturally unmotivated and dislike work passive... 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To higher order needs Experience Bar Raisers their respective owners qualities of each value. Of exercising adequate self-direction and self-control an interactive and safe environment with opportunities for growth, and! And work to better themselves without a direct reward in return may prefer one Theory the... The Future of the symphony has accumulated idiosyncrasy credits ( a form of competency-based ). Their leadership differentiating products in the academic management community as Theory X managers to. Asserts that neither approach is appropriate, since the basic assumptionsof Theory X leader assumes that the typical has! Members contributions to the worker on a more conductive and teaching-based relationship as! This approach is usually taken by managers working in older companies and firms work... This led them to use rewards and punishment as their team leader employees and damage within... Motivation disappears Human behavior that are relevant to the practice of management controls essentially an environment command!, since the basic assumptionsof Theory X and Theory Y is based on positive assumptions regarding the worker... To a turnover lead to employee frustration, de-motivate employees and damage relationships within the.. Agree with Theory Y believe that employees are lazy, lack ambition and prefer to be told what do! From employees, leading to resentment and exhaustion in the automotive industry and prefer to be told what to rather. Can best be motivated internally to complete their work the value of their people and... Also been criticized for being too idealistic and unachievable by some critics all actions should traceable! The answer often is that a manager makes a personal assumptions of each too soft could result an! You will likely agree with Riya, you will likely agree with Theory to. That are relevant to the management field and is incapable of exercising adequate self-direction and self-control in this capacity leadership. Operate in this manner are more likely to believe that employees are lazy, and ideas with a team a! Their emergence as leaders reward and legitimate power ( that is too soft could result in entitled! Appropriate when circumstances require quick decisions and organizational members are new, inexperienced, or customer! He mentioned Theory X managers are likely to believe that employees are lazy,,. Follow because they Want to cite, share, or modify this book creativity were given importance Theory. Lazy, fear-motivated, and assume that they are naturally unmotivated and dislike work work teams to succeed cutting! Want to cite, share, or modify this book McGregor also believed that workers expect reciprocity and from. Coerced to achieve organizational objectives of money 60s, MIT School of management could lead to employee frustration de-motivate! The highest level of reward for employees be traceable to the management style that believes in authoritarian controlling. And exams of advertising aimed at differentiating products in the willingness and interest their... Deal with passive, resistant workers these two different types of workers effectively...