X and Y Theory by Douglas McGregor
Social psychologist Douglas McGregor put forward his Theory X and Theory Y in his 1960 book, The Human Side of Enterprise. These theories explained two contrasting management styles, based on what managers believe motivates their employees.
( Channell, M. 2021. McGregor’s Theory X vs Theory Y: How to increase performance in your team. Available at: https://www.tsw.co.uk/blog/leadership-and-management/mcgregors-theory-x-vs-theory-y/ )[Accessed: 22 December 2022].
Theory X –
A Theory X manager might incentivize their employee by offering a bonus if they hit a particular sales target and keep track of their progress via appraisals to ensure delivery.
This control-focused style is not common anymore because it is a pessimistic view and – unsurprisingly – most people do not want to be micromanaged.
However, some large organizations might not have a choice but to adopt Theory X techniques simply due to their scale.
What do Theory X managers assume about their workers?
They:
• Don’t like the work
• Shirk responsibility
• Need to be told what to do and have constant supervision
• Have no ambition or desire to work hard
• Are only motivated by rewards
Theory Y –
Theory Y managers trust that their employees can handle more responsibility and so encourage them to learn and develop as they work.
They will encourage their employees to participate in collaborative projects, trusting them to deliver on their objectives.
What do Theory Y managers assume about their workers?
They:
• Find their work satisfying and challenging
• Want to help make decisions
• Motivate themselves
• Take responsibility for their work
• Need very little direction
• Can think outside the box to solve problems
A Theory Y manager could encourage an employee to learn how to optimize their audience targeting to hit a sales target, which will result in new skills, more responsibility and even a promotion in the future.
Appraisals might still be part of the process, but more as an open discussion rather than to keep control of progress.
Theory Y is a much more positive management style than Theory X, which could explain its popularity. It allows the employee to have some freedom and responsibility – and the manager to feel less like they need to pressure their staff.
It can lead to a more meaningful career, where staff are encouraged to care about more than just their wage .
How can managers apply McGregor’s Theory X and Theory Y to motivate employees and increase performance?
In order to accomplish organizational objectives as effectively as possible, managers in high-pressure, high-output environments will tend toward Theory X.
For instance, a manager, let's call them "X," needs to meet a monthly output goal for their department.
Anything produced above this baseline level will receive a bonus from X.
In order for their department to meet the required monthly output, X must now motivate their team to produce a specific volume of goods each day. Since they have a large workforce to oversee, the company promises to reward employees for exceeding targets while penalizing them for falling short of them. Unfortunately, X's employees don't have the time to offer suggestions for how to improve the workflow because there is no room for learning.
The employees can clearly understand their roles thanks to the strict rules and reward/punishment system.
The goals are accomplished, so X and its staff members receive their corresponding bonuses.
This is great for workers who are driven by money and a stable job, but it's not so great for those who want to advance intellectually or professionally.
Advantages of Theory X
Some employees thrive on an authoritative management style
Focus on achieving the company goals
No room for ambiguity, which makes roles and responsibilities clear
Disadvantages of Theory X
Some employees do not work well under such strict enforcement
Not everyone is motivated by financial gain, so they might not make much of an effort to achieve more
Can be detrimental to employee learning and development
Advantages of Theory Y
Much more appealing management style
Gives employees freedom and responsibility, which allows them to perform better
Encourages teamwork, development and creative problem solving
Disadvantages of Theory Y
Not everyone will be comfortable with undefined working boundaries
It would be easy to abuse the freedom and trust
Can be harder to measure success, as there is less focus on quantifiable metrics
( Channell, M. 2021. McGregor’s Theory X vs Theory Y: How to increase performance in your team. Available at: https://www.tsw.co.uk/blog/leadership-and-management/mcgregors-theory-x-vs-theory-y/ [Accessed: 22 December 2022]. )
Is Theory X and Theory Y good for employee well being?
Using McGregor's Theories X and Y, one can evaluate a person's needs and character.They'll feel comfortable following instructions given within the constraints of X and Y.
They'll be motivated and aware of your expectations, which both enhance well being and work-related happiness.
No matter if a manager in X or Y, read the room frequently.
Examine each person's actions and performance to determine whether your approach to motivating them is effective.
By pursuing Theory X or Y, you are standing up for their interests if make wise decisions on their behalf.
For instance, "Although I favor management style Y, this employee consistently meets their goals when working under Theory X.
They will move because I will move."
References
Career-development/motivation-in-management (Online) available from https://au.indeed.com/ (accessed on 13/11/2022)What-is-motivation (Online) available from https://www.verywellmind.com/ (accessed on 13/11/2022)
Two factor theory (Online) available from Two-Factor-Theory.png (555×321) (simplypsychology.org) (accessed on 13/11/2022)
What is motivation (online) available from https://www.verywellmind.com/what-is-motivation-2795378 (accessed on 13/11/2022)
What is McGregor_X&Y_theory (online) available from http://wiki.doing-projects.org/index.php/ (accessed on 25/11/2022)
What is McGregor_X&Y_theory (online) available from https://www.mindtools.com/adi3nc1/theory-x-and-theory-y
(accessed on 26/11/2022)
Channell, M. 2021. McGregor’s Theory X vs Theory Y: How to increase performance in your team. Available at: https://www.tsw.co.uk/blog/leadership-and-management/mcgregors-theory-x-vs-theory-y/ [Accessed: 22 December 2022].
This one well explained X and y theory but its better explaind the disadvantage and advantages
ReplyDeleteThank you Mr Dhanushka i have briefly mentioned the advantages 7 disadvantages of both theories. The main disadvantage with both theories is that not all employees will neatly fit into either category – the workplace is not a “two sizes fit all” environment.
DeleteAccording to your point of view, how a company can engage with this treory to compete localy and globaly ?
ReplyDeleteYes Mr Aruna , this theory is used by both local and international companies such as Apple, easyJet, Ford Motor, Google, and Facebook to strengthening the performance of the leaders to achieve organizational goals.
DeleteConsidering the labor force in Sri Lanka and their movement in migrating, do you think Y theory can really able retain its employees within the organization by providing L&D?
ReplyDeleteYes Mr Nadun People have a strong sense of self-motivation and enjoy a challenge.
DeleteWith this presumption, managers foster a closer working relationship with their staff members and inspire them by giving them the freedom to act independently, take on responsibility, and make decisions. Thank you for your valuable comment.
Application of these motivational theories to the global context world would also be a great approach in this regard
ReplyDeleteYes Ms Dinusha Theory Y is a much more optimistic management approach than Theory X, which might account for its appeal.
DeleteIt gives the worker some autonomy and responsibility, and it relieves the manager's need to exert pressure on the team.
What is better for a good organization ? X managors Y managers ?
ReplyDeleteTheory Y is a much more positive management style than Theory X, which could explain its popularity. It allows the employee to have some freedom and responsibility – and the manager to feel less like they need to pressure their staff.
DeleteThank you Mr Udara
You have explained about X and Y theory so you can discribe further how to apply this for organization
ReplyDeleteYes Mr Wimal i have briefly described with an example How can managers apply McGregor’s Theory X and Theory Y to motivate employees and increase performance?
DeleteI guess it would be much better if you explain on how to balance as we caould see pros and cons in both.
ReplyDeleteOf course Miss Banu, the theory has both the advantages & disadvantages. I added some critical points of both the theories.Thank you.
ReplyDelete