Theory X and Theory Y

Presented by- The Corporate Avengers

INTRODUCTION TO THE THEORIES

 Created & developed by Douglas McGregor in 1960s.

 Used in human recourses, organizational behavior analysis and organizational
development.
 Describe two different attitudes toward workforce motivation.
 Pertains to human motivation.
Theory X
(AUTHORITARIAN STYLE)

Theory X assumes autocratic management. The theory says that managers under Theory
X assume that most people are naturally lazy and need to be controlled and supervised.
This style of management assumes that workers:
 Dislike working.
 Avoid responsibility and need to be directed.
 Have to be controlled, forced, and threatened to deliver what's needed.
 Need to be supervised at every step, with controls put in place.
 Need to be enticed to produce results; otherwise they have no ambition or incentive to work.
Characteristics of Theory X managers

 The managers are results-driven.

 They are concerned with the completion of a given task.
 They issue deadlines for the completion of work.
 The managers lack tolerance. They are very intolerant in nature.
 Most of the theory X managers distances themselves from workers. They do not have
much of an attachment to with their employees.
 Theory X managers issue threats and warnings to make people follow their instructions.
 They do not participate in the process of team building.
Characteristics of Theory X managers (Cont.)

 They are unconcerned about the welfare or morale of the employees.

 They are one-way communicators and poor listeners.
 They withhold rewards and suppress pay and remuneration levels.
Manager Adopting Theory X believes

 Everything ends in blame.

 That is their job to structure the work and force employees to get that done.
 Punishment is the best way to get the work done.
 In blaming without evaluating the situation.
Theory Y
(PARTICIPATIVE STYLE)

Conversely, Theory Y assumes democratic management. The theory says that

managers under Theory Y assume that most people like to work.
This style of management assumes that workers:
 Take responsibility and are motivated to fulfil the goals they are given.
 Seek and accept responsibility and do not need much direction.
 Consider work as a natural part of life and solve work problems imaginatively.
 This more participative management style tends to be more widely applicable.
In Y-Type organizations, people at lower levels of the organization are involved
in decision making and have more responsibility.
Characteristics of Theory Y managers

 Some of the characteristics of Theory Y managers can be seen. Theory Y managers are quite
opposite to that of Theory X.
 Even Theory Y managers are results-oriented, after all, but they are also concerned with not
just the completion of work, but they assist their subordinates in doing things.
 Theory Y managers are very tolerant in nature. They tolerant mistakes and try to rectify them
by explaining what should not be done and what needs to be done.
 Theory Y managers do not distance out from their employees. They think it is all one team
including oneself and move along providing motivation and encouragement to the team.
 They do not threat employees for non-compliance. Instead, they explain them about the norms
and compliance issues and make them realize that instructions are for the betterment of work.
Manager Adopting Theory Y believes

 People want to do well in the work.

 Employees are a pool of unused creativity.
 The satisfaction of doing job is in itself motivating.
 Comparing Theory X and Theory Y

Theory X Theory Y

Motivation • Assumes people dislike work • Assumes people are self-motivated

Management Style and • Authoritarian • Participative, employees can join in decision

Control • Centralized control making
• Managers retain the power to implement
decisions

Work Organization • Specialized and often repetitive work • Wider areas of skill or knowledge
• Employees can develop their expertise and
make suggestions

Rewards and Appraisals • ‘Carrot and stick’ • Separate from organizational controls
• Frequent promotion opportunities
Conclusion

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. McGregor’s X-Y Theories remain guiding principles
to the management to evolve processes which help in organizational development.