McGregor cautioned both types of managers against what he called self-fulfilling prophecies, whereby an employee will act just as the manager assumed he or she would due to the manager's own actions and behaviors. Theory X managers are likely to believe that employees are lazy, fear-motivated, and in need of constant direction. Are inherently lazy, lack. Theory X Social or (interpersonal) influence is ones ability to effect a change in the motivation, attitudes, and/or behaviors of others. Management Styles Theories, Types & Examples | What is Management Style? The theories attempt to show how a manager's perception of his team affects the . The power base in many organizations shifted to marketing as competition became a game of advertising aimed at differentiating products in the consumers mind. McGregor cautioned both types of managers against what he called self-fulfilling prophecies, whereby an employee will act just as the manager assumed he or she would due to the manager's own actions and behaviors. I see Theory X and Theory Y as two natural divisions of people; groupings into those who dislike working and those who are inclined to working without persuasion. Theory Y, on the other hand, presents a positive view of human . Theory X management is substantially a matter of crafting positive and negative incentives, such as bonuses or other rewards for meeting targets, or progressive discipline for falling short, which may include remedial training. The Japanese had discovered something that was givingthem the competitive edge. This is a positive view of the nature of workers. It follows the traditional route of direction and control. In the 1950s, Tannenbaum and Schmidt created a continuum (see Exhibit 13.6) along which leadership styles range from authoritarian to extremely high levels of worker freedom.34 Subsequent to Tannenbaum and Schmidts work, researchers adapted the continuum by categorizing leader power styles as autocratic (boss-centered), participative (workers are consulted and involved), or free-rein (members are assigned the work and decide on their own how to do it; the leader relinquishes the active assumption of the role of leadership).35. I would definitely recommend Study.com to my colleagues. So grab your bomb repellent while we explore these two different types of managers by discussing the assumptions of each. According to McGregor, Theory X managementassumes the following: Essentially, Theory X assumes that the primary source of employee motivation is monetary, with security as a strong second. Its assumptions about the value of individual initiative make it more a Theory-Y than a Theory X philosophy.[15]. Theory X and Theory Y are theories of human work motivation and management. When researchers study trends in occupational inequality they usually focus on distribution or allocation pattern of groups across occupations, for example, the distribution of men compared to women in a certain occupation. In sum, one key to effective leadership, especially as it pertains to the exercise of social and interpersonal influence, relates to the type of power employed by the leader. The Theory X leader assumes that the average individual dislikes work and is incapable of exercising adequate self-direction and self-control. Think about a conveyor belt of automotive parts with workers and machines lined side by side, each tasked with applying a specific skill to the production processtightening a bolt, applying a hinge, taping up a box to be shipped, etc. workers must be controlled in order to achieve a company's goalsb. But how do leaders effectively exercise this influence? Decision making became centralized and control was established through a chain of command where workers were not being provided an opportunity to contribute to the process. I think there is a little misconception here. Theory Y managers, on the other hand, are more optimistic. 9899. OpenStax is part of Rice University, which is a 501(c)(3) nonprofit. Because of this, a Theory X approach may be necessary although I believe it's best to give people the benefit of the doubt and go with a more empowering approach to begin with. Work is inherently distasteful to most people, and they will attempt to avoid work whenever possible. [4] The workplace lacks unvarying rules and practices, which could potentially be detrimental to the quality standards of the product and strict guidelines of a given company. are not subject to the Creative Commons license and may not be reproduced without the prior and express written But there are times when management is less about leadership and more about the staunch enforcement of rules and micromanagement of production. However, because there is no optimal way for a manager to choose between adopting either Theory X or Theory Y, it is likely that a manager will need to adopt both approaches depending on the evolving circumstances and levels of internal and external locus of control throughout the workplace. McGregor created Theory X based on Maslows lower needs on the hierarchy of needs model (food, water, necessities). Work is changing. As a Theory X manager, Xavier believes that his workers: Hate the idea of having to go to work and do so only to earn a paycheck and the security that it offers. It refers to the management style that believes in authoritarian and controlling behavior. The employee dislikes working, is not motivated enough and thus avoids working, whenever there is an opportunity. He explained this concept in his book "The Human side of Enterprise". These theories have become the reference point for various approaches to the issues of human resource administration and organisation. How do leaders influence and move their followers to action? She also holds three degrees including communications, business, educational leadership/technology. Many startups and new organizations use Theory Y by using flexible deadlines and less controlling supervisors. The theory X and Y leadership model was developed 50 years ago and has been validated by modern research. Ouchis Theory Z makes certain assumptions about workers. Based on these factors, it is easy to see how Theory X differs from Theory Y and easy to imagine their potential outcomes in the workplace. They're full of potential, and it's through their own. As a consequence, they exert a highly controlling leadership style. Self-actualization and creativity were given importance in Theory Y. Traditionally, the roles of informal leaders have not included the total set of management responsibilities because an informal leader does not always exercise the functions of planning, organizing, directing, and controlling. He mentioned Theory X and Theory Y in his book, The Human Side of Enterprise, published in 1960. As a result, they must be closely controlled and often coerced to achieve organizational objectives. How do the theories of Tannenbaum and Schmidts leadership continuum and McGregors Theory X and Theory Y attempt to define leadership? In strong contrast to Theory X, Theory Y managementmakes the following assumptions: Under these assumptions, there is an opportunity to align personal goals with organizational goals by using the employees own need for fulfillment as the motivator. d. job satisfaction is primarily related to higher order needs. Finally, Theory Z assumes that given the right management support, workers can be trusted to do their jobs to their utmost ability and look afterfor their own and others well-being. Drawing on Maslows hierarchy of needs, McGregor argues that a need, once satisfied, no longer motivates. The two theories proposed by McGregor describe contrasting models of workforce motivation applied by managers in human resource management, organizational behavior, organizational communication and organizational development. This led them to use rewards and punishment as their primary means to motivate employees. Theory Y managers believe employees would be motivated to meet goals in the absence of organizational controls, given favorable conditions. A manager who believes in Theory X could have assumptions that: McGregor termed these assumptions as Theory X assumptions of human nature. Evidence suggests that managers from different parts of the global community commonly hold the same view. As a result, they think that team members need to be prompted, rewarded or punished constantly to make sure that they complete their tasks. Management believes employees' work is based on their own self-interest. He wrote on leadership as well. then you must include on every physical page the following attribution: If you are redistributing all or part of this book in a digital format, They need an interactive and safe environment with opportunities for growth, learning and creativity. 17 chapters | All other trademarks and copyrights are the property of their respective owners. D. job satisfaction is primarily related to higher order needs. The permissive democratic approach to leadership is characteristic of leadership in high-involvement organizations. McGregor stressed that Theory Y management does not imply a soft approach. B employees are primarily motivated by opportunities for advancement and recognition. When employees rise to a higher level of management, it is expected that they will use Theory Z to bring up, train, and develop other employees in a similar fashion. Known as an influential figure in management theory, organizational communication, and organizational studies, Douglas McGregor was a professor at Massachusetts Institute of Technology, where he was a vocal advocate of the human relations approach. Theory Zalso makes assumptions about company culture. This theory is also likely to be used when the work in the organization is repetitive and employees are likely to get bored and need some control. [7] The hard approach depends on close supervision, intimidation, and immediate punishment. D.job satisfaction is primarily related to higher order needs. As we have noted, leadership is the exercise of influence over those who depend on one another for attaining a mutual goal in a group setting. The soft approach, however, is to be permissive and seek harmony in the hopes that, in return, employees will cooperate when asked. Managers following Theory X can be pessimistic and orthodox in their approach and be prone to assume that employees are not interested in their work and need to be pushed. You lead people.23 Informal leaders often have considerable leverage over their colleagues. Read them well and, normally, they'll feel confident taking direction under the parameters of X and Y. They'll understand your expectations and feel motivated - those two things promote happiness at work and contribute to wellbeing. It views job rotations and continual training as a means of increasing employees knowledge of the company and its processes while buildinga variety of skills and abilities. Self-determination Theory Self-determination theory suggests that people are motivated to grow and change by three Which of the following is a behavior that would most likely b Informal leaders, by contrast, are not assigned by the organization. He referred to these opposing motivational methods as Theory X and Theory Y management. The answer often is that a leaders social influence is the source of his power. B. most employees know more about their job than the boss. Since workers are given much more time to receive training, rotate through jobs, and master the intricacies of the companys operations, promotions tend to be slower. Theory X represents a negative view of human nature that assumes individuals generally dislike work, are irresponsible, and require close supervision to do their jobs. McGregor (1960) proposed two models "Theory X and Theory Y", which he devised to describe two contrasting beliefs that managers hold about their paid workers. are licensed under a, Major Characteristics of the Manager's Job, How the Brain Processes Information to Make Decisions: Reflective and Reactive Systems, Administrative and Bureaucratic Management, External and Internal Organizational Environments and Corporate Culture, The Internal Organization and External Environments, Organizing for Change in the 21st Century, Ethics, Corporate Responsibility, and Sustainability, Dimensions of Ethics: The Individual Level, Ethical Principles and Responsible Decision-Making, Leadership: Ethics at the Organizational Level, Ethics, Corporate Culture, and Compliance, Emerging Trends in Ethics, CSR, and Compliance, Cultural Stereotyping and Social Institutions, Characteristics of Successful Entrepreneurs, Trends in Entrepreneurship and Small-Business Ownership, Strategic Analysis: Understanding a Firms Competitive Environment, Gaining Advantages by Understanding the Competitive Environment, A Firm's External Macro Environment: PESTEL, A Firm's Micro Environment: Porter's Five Forces, Competition, Strategy, and Competitive Advantage, The Strategic Management Process: Achieving and Sustaining Competitive Advantage, The Role of Strategic Analysis in Formulating a Strategy, Strategic Objectives and Levels of Strategy, Planning Firm Actions to Implement Strategies, Measuring and Evaluating Strategic Performance, An Introduction to Human Resource Management, Influencing Employee Performance and Motivation, Talent Development and Succession Planning, Benefits and Challenges of Workplace Diversity, Situational (Contingency) Approaches to Leadership, Substitutes for and Neutralizers of Leadership, Transformational, Visionary, and Charismatic Leadership, Opportunities and Challenges to Team Building, Factors Affecting Communications and the Roles of Managers, Managerial Communication and Corporate Reputation, The Major Channels of Management Communication Are Talking, Listening, Reading, and Writing, Formal Organizational Planning in Practice, Management by Objectives: A Planning and Control Technique, The Control- and Involvement-Oriented Approaches to Planning and Controlling, MTIIts Importance Now and In the Future, External Sources of Technology and Innovation, Internal Sources of Technology and Innovation, Management Entrepreneurship Skills for Technology and Innovation, Managing Now for Future Technology and Innovation, Tannenbaum and Schmidts Leadership Continuum, Leadership Behavior and the Uses of Power. 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