Theory X Y and Y

Style of Leadership
Group 2 Members
SITTI RAIYAN
LUCMAN
RYEMARK DITCHOSA
PRINCESS ELAINE
ESPERAT
LORIANE FAITH GUTIB
Recap
 Anagram

Guess the Word!

EORSSIITYPBILN
RESPONSIBILITY
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Guess the Word!

OIMTAITNVO
MOTIVATION
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MPEELOYE
EMPLOYEE
 Anagram

Guess the Word!

IEDSIICPLN
DISCIPLINE
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RSTUT
TRUST
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DUCVITYPROTI
PRODUCTIVITY
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NTMAGENAME
MANAGEMENT
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EAANMRG
MANAGER
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ONITIAMB
AMBITION
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SUMONASPTI
ASSUMPTION
What Motivates you?
 Theory X

Douglas Murray McGregor (1906-1964)

• A management professor at the MIT slaan School
of management.
• He also thought at the Indian institute of
management Calcutta.
• He is best known for his Theory X and Theory Y
as presented in his book ‘The human side
Enterprise’ (1960), which proposed that manager’s
individual assumption about human nature and
behavior determined how individual manages their
employees.
 THEORY X
(Authoritarian Management Style)
• Team members dislike work and avoid it if possible.
• Team members need to be micromanaged and coerced into
compliance.
• Team members avoid responsibility.
• Team members are motivated by fear or lack of job security.
 THEORY Y
(Participative Management Style)
The Theory of Y is a management style based on the assumption that employees
are motivated by an internal desire to excel and take on more responsibility. The
higher-level wants of esteem and self-actualization are never totally satisfied for
the majority of people. As a result, it is through these higher level demands that
employees can be best motivated.

So, in theory Y, these are the assumptions:

• If the opportunity arises, work can feel as natural as play.
• The ability to be creative is distributed throughout businesses.
• Team members are willing to work and enjoying it.
• Team members can be trusted to do their jobs as they are self directed and self
disciplined.
• Team members are motivated by the desire of self development and to
contribute to the world.
• Team members seek responsibility and thrive on it.
Relating McGregors Model to Maslow’s
Hierarchy of Needs
THEORY Z

William Ouchi
• The Theory Z was invented by American
economist and management professor William
Ouchi, following the X and Y theory by
Douglas McGregor in the 1960’s.
• The Theory Z was introduced in the 1980’s
by William Ouchi based on Japanese style.
Features of THEORY Z
• Mutual Trust
• Strong Bond between organization and Employees
• Employee Involvement
• Integrated Organization
• Culture of Organization
• Informal Relationship

How it Works?

Life time Job High

High Morale
Employment Satisfaction Productivity
 Limitation of Study

• Life time employment does not satisfy high order needs and make employees lethargic.
• Participation of employee in decision making is quite difficult as it hurts managers ego.
• Theory Z suggest organization without any structure.
• It may not be possible to develop a common culture in the organization because people
differ in their attitudes, habits, languages, religions, customs, etc.
• Theory Z is based on Japanese school of management so may not be suitable for other
cultures.
Conclusion
Buzz Session
Thank You!