Douglas Mcgregor Theory X and Theory YHis life and Works

8/13/2010B.C.C.A Institute Of management StudiesZeba Salmani And Group

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Its my Invention In the Field Of Management

Theory X and Theory Y

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BiographyManagement Pioneer, Douglas Murray Mcgregor (1906 - 1964) Was Born In

The Bustling Border Metropolis Of Detroit, Michigan Just As It Was

Emerging As The World's Great Motor City. While He Was At High School,

Mcgregor Worked As Night Clerk At The Mcgregor Institute And Also Played

Piano At Its Regular Services. The Institute Was Very Much A Family Affair;

Originally Set Up By His Grandfather, It Was Now Being Managed By His

Uncle Tracy And Father Murray To Provide Temporary Accommodation For

Around 100 Transient Workers At A Time.

At 17, Mcgregor Briefly Considered Becoming A Lay Preacher, Before

Choosing To Enrol For A Psychology Degree At The College Of The City Of

Detroit (Now Wayne State University). After Two Years Of The Course He

Tried A Term At Oberlin, His Uncle's Old College In Ohio. But At 19, He

Decided To Get Married, Drop Out Of College Altogether And Earn His

Living As A Gas Station Attendant In Buffalo. By 1930, Mcgregor Had Risen

To The Rank Of Regional Gas Station Manager.

Meanwhile In Depression-Hit Detroit, Unemployment Was Soaring And The

Local Department Of Public Works Had Handed The Mcgregor Institute A

Large Subsidy To Increase Its Facilities. Douglas Mcgregor Decided He Could

Now Afford To Resume His Studies If He Also Worked Part-Time At The

Much Expanded Institute. This Meant That When He Finally Completed His

First Degree In 1932, He Was Also Organising Mass Soup Kitchens For The

Unemployed, While Helping With The Management Of The Institute. Soon

After His Graduation He Chose To Move To The Academic Tranquillity Of

Cambridge, Massachusetts To Continue His Education. For Three Years He

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Studied At Harvard Gaining An Ma And Phd In Psychology. (The Colour

Blind Mcgregor Had Chosen The Sensitivity Of The Eye To The Saturation Of

Colours For His Phd Topic.) For The Next Two Years He Stayed On At

Harvard As A Psychology Lecturer. Then In 1937 He Took The Short Trip

Down Massachusetts Avenue To Set Up An Industrial Relations Section At

Massachusetts Institute Of Technology.

In Addition To His Teaching Work At Mit, Mcgregor Took On Increasing

Amounts Of Industrial Relations Consultancy Work, Particularly At Dewey

Almy, A Local Rubber And Sealants Company. This Work Covered Wage

And Salary Administration, Contract Negotiation, Foremen Training,

Grievance Handling, Executive Development Programs, Union And

Management Cooperation Programs, And Problems Of Organizational

Structure And Function. He Was Also Much In Demand As A Speaker By

Both Business And By Labour Unions. But When In 1947, The President Of

The Progressive Antioch College In Yellow Springs, Ohio, Resigned, Douglas

Mcgregor Seized The Opportunity And Applied For The Post.

The 41 Year Old Mcgregor Commenced His Presidential Term At Antioch In

1948. It Was To Prove A Pivotal Point In His Life And In His Personal

Development. As He Tried To Put His Cooperative Style Into Practice, He

Could Now Appreciate The Problems Of Leadership First Hand. At The

Forefront Of What Was To Become The Civil Rights Movement, Antioch

Were One Of The First Us Mainstream Colleges To Welcome African-

Americans. But When They Qualified As Teachers, Mcgregor Struggled To

Get Them Placed In Any Of The Local White Schools. He Also Had To Resist

Pressure From The Powerful House Un-American Activities Committee To

Expel Student Activists With Left-Wing Views. And, Of Course, There Were

Always The Continuing Problems Of Attracting Enough New Students And

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Fee Income To Balance The College's Books. As Mcgregor Was Later To

Reflect, I Thought I Could Avoid Being A 'Boss'. ........... I Could Not Have

Been More Wrong. It Took A Couple Of Years, But I Finally Began To

Realise That A Leader Cannot Avoid The Exercise Of Authority Any More

Than He Can Avoid Responsibility For What Happens To His Organization.

Moreover, Since No Important Decision Ever Pleases Everyone In The

Organization, He Must Absorb The Displeasure, And Sometimes Severe

Hostility, Of Those Who Would Have Taken A Different Course.

After Six Years Of Trying To Reconcile The Conflicting Demands Of

Leadership At Antioch College, Mcgregor Decided To Return To Mit, This

Time As A Faculty Member Of The Recently Established Sloan School Of

Management. He Persuaded The Former Trade Union Accountant Joe Scanlon

To Join Him At Mit. Mcgregor Had Worked With Scanlon At Dewey Almy.

The Coarsely Spoken Ex-Boxer And Steelworker Had Built An Impressive

Reputation With His Scanlon Plan For Staff Involvement, Suggestion Schemes

And Gainsharing. Scanlon's Work Was To Become An Important Source For

Theory Y In Mcgregor's 1960 Best-Seller The Human Side Of Enterprise.

Mcgregor's Compelling New Vocabulary Assured Him Of Almost Instant

Global Fame. However For The Remainder Of His Life Mcgregor Tried

Vainly To Dispel The Simplified Paradigm Of Theory X = Bad; Theory Y=

Good That Others Had Imposed On His Analysis. Though Douglas Mcgregor

Was To Die Suddenly Of A Heart Attack Aged Just 58, His Work Has Stood

The Test Of Time. One Small Reflection Of This Is That The Main Antioch

Campus At Yellow Springs Is Now Called Antioch University Mcgregor, Or

More Commonly Just Mcgregor.

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Facts about his life

Born in 1906, in detroit, and died in 1964, in massachusetts.

His grandfather thomas mcgregor in about 1895 founded mcgregor institute to aid great lakes sailors and other transient labour. This institute housed and fed more than 1000 men every year.

In his youth he worked in his grandfather's institute for transient labourers in detroit, where he gained insight into the problems faced by labour.

He worked as a district manager for a retail gasoline merchandising firm to gather up family to start a family. In the course of this job, he learned the concepts of management.

He was the first full time professor of psychology at mit university.

In 1960, he wrote the book “the human side of enterprise”, where he identifies and develops his renowned theory x and theory y.

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His theory Theory y and theory x are theories of human motivation that have been used for human resource management, organizational behaviour and organizational development. They describe two very different attitudes toward workforce motivation, and are based upon maslow's “hierarchy of needs”, in that he grouped the hierarchy into "lower order" (theory x) needs and "higher order" (theory y) needs. He suggested that management could use either set of needs to motivate employees, but better results could be gained by the use of theory y, rather than theory x.

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Theory ‘x’ and theory ‘y ’ Theory x and theory y are theories of human motivation developed in the 1960s that have been used in human resource management, organizational behavior, and organizational development. They describe two very different attitudes toward workforce motivation. Mcgregor felt that companies followed either one or the other approach

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Theory ‘x’In this theory, which has been proven counter-effective in most modern practice, management assumes employees are inherently lazy and will avoid work if they can and that they inherently dislike work. As a result of this, management believes that workers need to be closely supervised and comprehensive systems of controls developed. A hierarchical structure is needed with narrow span of control at each and every level. According to this theory, employees will show little ambition without an enticing incentive program and will avoid responsibility whenever they can. According to michael j. Papa (ph.d., temple university; m.a., central michigan university; b.a., st. John’s university), if the organizational goals are to be met, theory x managers rely heavily on threat and coercion to gain their employee's compliance. Beliefs of this theory lead to mistrust, highly restrictive supervision, and a punitive atmosphere. The theory x manager tends to believe that everything must end in blaming someone. He or she thinks all prospective employees are only out for themselves. Usually these managers feel the sole purpose of the employee's interest in the job is money. They will blame the person first in most situations, without questioning whether it may be the system, policy, or lack of training that deserves the blame. A theory x manager believes that his or her employees do not really want to work, that they would rather avoid responsibility and that it is the manager's job to structure the work and energize the employee. One major flaw of this management style is it is much more likely to cause diseconomies of scale in large businesses.

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The Role of management is to force and control employees:

People have an inherent dislike for work and will avoid it whenever possible.

People must be coerced, controlled, directed, or threatened with punishment in order to get them to achieve the organizational objectives

People prefer to be directed, do not want responsibility, and have little or no ambition.

People seek security above all else.

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Problems with Theory ‘x ’ Drawing on maslow’s hierarchy, mcgregor argues that a satisfied need no

longer motivates. Under theory x the firm relies on money and benefits to

satisfy employees’ lower needs, and once those needs are satisfied the source

of motivation is lost. Theory x management styles in fact hider the satisfaction

of higher level needs. Consequently, the only way that employees can attempt

to satisfy their higher level needs in their work is by seeking more

compensation, so it is quite predictable that they will focus on monetary

rewards. While money may not be the most effective way to self fulfillment, in

theory x environment it may be the only way. Under theory x, people use work

to satisfy their lower needs, and seek to satisfy their higher needs in their

leisure time. But its is in satisfying their higher needs that employees can be

more productive.

Drawing on maslow's needs hierarchy, mcgregor argues that a need, once

satisfied, no longer motivates. Under motivation theory x, the firm relies

on money and benefits to satisfy employees' lower needs (mentioned

before), and once those needs are satisfied the source of motivation is lost.

This is why mcgregor makes the point that a command and control

environment is not effective because it relies on lower needs as levers

of motivation, but in modern society those needs already are satisfied and

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thus no longer motivate.

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Characteristics of the theory ‘x’ manager

Results-driven and deadline-driven, to the exclusion of everything else intolerant Issues deadlines and ultimatums Distant and detached Aloof and arrogant selective Short temper Shouts Issues instructions, directions, edicts Issues threats to make people follow

instructions Demands, never asks Does not participate Does not team-build Unconcerned about staff welfare, or

morale Proud, sometimes to the point of self-destruction One-way communicator Poor listener Fundamentally insecure and possibly neurotic Anti-social Vengeful and recriminatory Does not thank or praise Withholds rewards, and suppresses pay and remunerations levels Scrutinises expenditure to the point of false economy Seeks culprits for failures or shortfalls Seeks to apportion blame instead of focusing on learning from the

experience and preventing recurrence Does not invite or welcome suggestions Takes criticism badly and likely to retaliate if from below or peer group Poor at proper delegating - but believes to be good at delegating Thinks giving orders is delegating Holds on to responsibility but shifts accountability to subordinates Relatively unconcerned with investing in anything to gain future

improvements

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How you can manage upwards your ‘x’ theory boss:

Working for an x theory boss isn't easy - some extreme x theory managers make extremely unpleasant managers, but there are ways of managing these people upwards. Avoiding confrontation (unless you are genuinely being bullied, which is a different matter) and delivering results are the key tactics.

Theory x managers (or indeed theory y managers displaying theory x behaviour) are primarily results oriented - so orientate your your own discussions and dealings with them around results - ie what you can deliver and when.

Theory x managers are facts and figures oriented - so cut out the incidentals, be able to measure and substantiate anything you say and do for them, especially reporting on results and activities.

Theory x managers generally don't understand or have an interest in the human issues, so don't try to appeal to their sense of humanity or morality. Set your own objectives to meet their organisational aims and agree these with the managers; be seen to be self-starting, self-motivating, self-disciplined and well-organised - the more the x theory manager sees you are managing yourself and producing results, the less they'll feel the need to do it for you.

Always deliver your commitments and promises. If you are given an unrealistic task and/or deadline state the reasons why it's not realistic, but be very sure of your ground, don't be negative; be constructive as to how the overall aim can be achieved in a way that you know you can deliver.

Stand up for yourself, but constructively - avoid confrontation. Never threaten or go over their heads if you are dissatisfied or you'll be in big trouble afterwards and life will be a lot more difficult.

If an x theory boss tells you how to do things in ways that are not comfortable or right for you, then don't questioning the process, simply confirm the end-result that is required, and check that it's okay to 'streamline the process' or 'get things done more efficiently' if the chance arises - they'll normally agree to this, which effectively gives you control over the 'how', provided you deliver the 'what' and 'when'.

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And this is really the essence of managing upwards x theory managers - focus and get agreement on the results and deadlines - if you consistently deliver, you'll increasingly be given more leeway on how you go about the tasks, which amounts to more freedom. Be aware also that many x theory managers are forced to be x theory by the short-term demands of the organisation and their own superiors - an x theory manager is usually someone with their own problems, so try not to give them any more.

Theory ‘y’

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In this theory, management assumes employees may be ambitious

and self-motivated and exercise self-control. It is believed that

employees enjoy their mental and physical work duties. According to

papa, to them work is as natural as play.

They possess the ability for creative problem solving, but their

talents are underused in most organizations. Given the proper

conditions, theory y managers believe that employees will learn to

seek out and accept responsibility and to exercise self-control and

self-direction in accomplishing objectives to which they are

committed. A theory y manager believes that, given the right

conditions, most people will want to do well at work. They believe

that the satisfaction of doing a good job is a strong motivation. Many

people interpret theory y as a positive set of beliefs about workers. A

close reading of the human side of enterprise reveals that mcgregor

simply argues for managers to be open to a more positive view of

workers and the possibilities that this creates. He thinks that theory y

managers are more likely than theory x managers to develop the

climate of trust with employees that is required for human resource

development. It's here through human resource development that is a

crucial aspect of any organization. This would include managers

communicating openly with subordinates, minimizing the difference

between superior-subordinate relationships, creating a comfortable

environment in which subordinates can develop and use their

abilities. This climate would include the sharing of decision making

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so that subordinates have say in decisions that influence them. This

theory is a positive view to the employees, meaning that the

employer is under a lot less pressure than some one who is

influenced by a theory x management style.

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The Role of management is to develop the potential in employees and help them to release that potential towards common goals:

Work is as natural as play and rest.

People will exercise self-direction if they are committed to the objectives (they are not lazy).

Commitment to objectives is a function of the rewards associated with their achievement.

People learn to accept and seek responsibility.

Creativity, ingenuity, and imagination are widely distributed among the population. People are capable of using these abilities to solve an organizational problem.

People have potential.

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Characteristics of the theory ‘y’ manager

Focus on methods as well as results

Forgiving

Involved, interested

Outgoing, friendly

People-oriented

Patient

Asks, rewards

Delegates

Seeks to boost morale

Seeks opinions of others

Accepts responsibility

Assigns pay levels fairly

Looks at the big picture

Participative, team builder

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Business implications of Applying

Theory ‘y’

If theory y holds, the firm can do many things to harness the motivational

energy of its employees:

Decentralization and delegation – if firms decentralize control and

reduce the number of levels of management; each manager will have

more subordinates and consequently will be forced to delegate some

responsibility and decision making to them.

Job enlargement – broadening the scope of an employee’s job adds

variety and opportunities to satisfy ego needs.

Participative management – consulting employees in the decision

making process taps their creative capacity and provides them with some

control over their work environment.

Performance appraisals – having the employee set objectives and

participate in the process of evaluating how well they were met.

If properly implemented, such an environment would result in a high level of

motivation as employees work to satisfy their higher level personal needs

through their jobs.

Physiological

Safety & Security

Love (Social)

Esteem

SA Theory Y - a set of assumptions of how to manage individuals motivated by higher order needsTheory X - a set of assumptions of how to manage individuals motivated by lower order needs

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Mcgregor and Maslow's hierarchy

Mcgregor's work was based on maslow's hierarchy of needs. He grouped maslow's hierarchy into "lower order" (theory x) needs and "higher order" (theory y) needs. He suggested that management could use either set of needs to motivate employees but that better results could be obtained by meeting the theory y needs.

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CriticismNowadays mcgregor's theory is seen as outdated, representing two extremes.

Theory x is perhaps visible in low paid or menial work but employees in those

situations will move on in search of positions with theory y conditions if they

are motivated.

Personal development, management training and even general perceptions of

behaviour are against a theory x outlook towards work.

There is no doubt that this outlook would have been more prevalent in the

1960s when mcgregor created his theory.

Before he died mcgregor started working on a new theory that he called theory

z to address these criticisms.

Unfortunately he died before this could be widely published and the ideas have

since faded from mainstream management theory.

They were, however, landmark ideas at their time and now form an important

part of the historical study of management theory.

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ConclusionSeveral business and economics professors and theologists sustain that mcgregor was in some way misinterpreted.

they say that mcgregor wrote his book (“the human side of enterprise”) with the objective of leading managers into investigating the two theories

and into inventing new ones according to their situation or reality. Instead, his theory y was accepted as a new superior ethic- a set of moral

values that ought to replace the values managers usually accept.

Nevertheless, there is no doubt that mcgregor’s work has had a tremendously beneficial impact on the way managing is looked at today.