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Theory X and Theory - Unit-II

Organizational behaviour

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Aditi Verma
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52 views3 pages

Theory X and Theory - Unit-II

Organizational behaviour

Uploaded by

Aditi Verma
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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McGregor’s Theory ‘X’ and Theory ‘Y’

Our management style is firmly influenced by our beliefs and assumptions about what encourages
members of our team like: If we believe that our team members dislike work, then we tend towards
an authoritarian style of management. However, if we assume that employees take pride in doing
a good job, we tend to adopt a more participative style.

Douglas McGregor, the eminent social psychologist, divides management style into two
contrasting theories −

 Theory X
 Theory Y

Theory X
This theory believes that employees are naturally unmotivated and dislike working, and this
encourages an authoritarian style of management. According to this theory, management must
firmly intervene to get things done. This style of management concludes that workers −

 Disfavor working.
 Abstain responsibility and the need to be directed.
 Need to be controlled, forced, and warned to deliver what's needed.
 Demand to be supervised at each and every step, with controls put in place.
 Require to be attracted to produce results, else they have no ambition or incentive to work.

McGregor observed that X-type workers are in fact mostly in minority, and yet in mass
organizations, such as large scale production environment, X Theory management may be needed
and can be unavoidable.

Theory Y
This theory explains a participative style of management, that is, distributive in nature. It concludes
that employees are happy to work, are self-motivated and creative, and enjoy working with greater
responsibility. It estimates that workers −
 Take responsibility willingly and are encouraged to fulfill the goals they are given.
 Explore and accept responsibility and do not need much guidance.
 Assume work as a natural part of life and solve work issues imaginatively.

In Y-type organizations, people at lower levels are engaged in decision making and have more
responsibility.

Comparing Theory X & Theory Y


Let us now compare both the theories −

Motivation

Theory X considers that people dislike work, they want to avoid it and do not take responsibilities
willingly.

While, Theory Y considers that people are self-motivated, and sportingly take responsibilities.

Management Style and Control

In Theory X-type organization, management is authoritarian, and centralized control is maintained.

While in Theory Y-type organization, the management style is participative, employees are
involved decision making, but the power retains to implement decisions.

Work Organization

Theory X employees are specialized and the same work cycle continues.

In Theory Y, the work tends to be coordinated around wider areas of skill or knowledge.
Employees are also motivated to develop expertise, and make suggestions and improvements.

Rewards and Appraisals

Theory X-type organizations work on a ‘carrot and stick’ basis, and performance assessment is
part of the overall mechanism of control and compensation.

Coming to Theory Y-type organizations, appraisal is also regular and crucial, but is usually a
separate mechanism from organizational controls. Theory Y-type organizations provide
employees frequent opportunities for promotion.

Application
Admitting the fact that Theory X management style is widely accepted as inferior to others, it has
its place in large scale production procedure and unskilled production-line work.

Many of the principles of Theory Y are widely accepted by different types of organization that
value and motivate active participation.
Theory Y-style management is appropriate for knowledge work and licensed services. Licensed
service organizations naturally develop Theory Y-type practices by the nature of their work, even
high structure knowledge framework, like call center operations, benefit from its principles to
motivate knowledge sharing and continuous improvement.

Comparison Chart
Basis for
Theory X Theory Y
Comparison

Theory Y, is an advanced theory, wherein it is


Theory X is a motivational theory,
assumed that the workers are self-directed
which involves high supervision and
Meaning and self-motivated, for growth and
control over the subordinates, and
development and takes active part in decision
greater degree of centralization.
making.

Work Dislikes work Work is natural

Ambition Little to no ambition Highly ambitious

Responsibility Avoids responsibility. Accept and seek responsibility.

Leadership
Autocratic Democratic
style

Direction Constant direction is required. Little to no direction is required.

Control Tight Lenient

Authority Centralized Decentralized

Self-motivation Absent Present

Psychological needs and Security Social needs, esteem needs and self-
Focuses on
needs actualization needs.

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