Theory X and Theory Y

Douglas McGregor, a  management professor , first talked about two theories called Theory X and Theory Y. He identified an approach of creating an environment within which employees are motivated via authoritative, direction and control or integration and self-control, and called it Theory X and Theory Y.

THEORY X
Theory X is something which emphasizes on productivity. It says that “management must counteract an inherent human tendency to avoid work”. Theory X is a style that changed the way of looking at the business.

The managers who assume that the people working under them are lazy and are bound to avoid work if they get a chance. The only way to make people work is by threat and use of power. More often than not this theory does not allow employees to gel amongst themselves and know each other.

Following are the assumption made by Theory X style of management :

·                     An average employee intrinsically does not like work and tries to escape it whenever possible

·                     The employee does not want to work, and hence ,he must be persuaded, compelled, or warned with punishment so as to achieve organizational goals.

·                     Many employees rank job security on top, and do not have much aspiration/ ambition

·                     Employees generally do not take responsibilities

·                     Employees resist change

·                     An average employee needs a direction from his superior

THEORY Y

Theory Y is an optimistic management which “assumes that people will exercise self-direction and self-control towards the achievement of organizational objectives to the level that they are committed to those objectives.

This management style assumes that the employees are self motivated and are ambitious. A Theory Y manager believes that, given the right conditions, most people will want to do well at work. This allows employees to learn from one another and have a positive attitude towards work.

 Following are the assumptions made by Theory Y style of management:

·                     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

Though these theories are very basic in nature, they provide a platform for future generations of management theorists and practitioners to understand the changing dynamics of human behavior. Taken too literally, Theories X and Y seem to represent unrealistic extremes. Most employees (including managers) fall somewhere in between these poles.