McGregor’s Theory X and Theory Y

 

    

McGregor’s Theory X and Theory Y

McGregor’s ideas about Theory X and Theory Y were first articulated in his article, “The Human Side of Enterprise” (Lawter et al, 2015). Theory X and Y are different two management styles with certain philosophies defined according to each manager within an organization environment. They both look at ways and means how to motivate employees and therefore, have a feel of the characters of their workers. For example, theory X believes pushing employees to work by having punishment and rewards can be a motivational factor, while theory Y promotes self-management, self-esteem, and management by objectively leading to intrinsic and extrinsic rewards (Touma, 2021).

McGregor’s perspective was that there had to be an equal balance between the needs of an employee and those of an organization. Trying to meet this balance between individual and enterprise, McGregor applied psychologist Abraham Maslow’s hierarchy of needs to his theories on management (Singh, 2019). Maslow’s hierarchy of needs theory was an arrangement of the five basic needs: self-actualization, esteem, belonging, safety, and physiological needs (Armstrong, 2009).

When McGregor formed the basis of his Theory X and Theory Y assumptions, he grouped Maslow’s five basic needs into ‘high’ and ‘low’ order needs, the ‘high order needs’ encompassing the Belonging, Esteem, and Self-Actualization needs while the ‘low’ incorporated the Physiological and the Security needs. By doing this McGregor was able to come to the realization that motivation was the key to managing others and interpreted it into his Theory X and Theory Y (Singh, 2019).

Theory X

The Theory ‘X’ management assumes employees are inherently lazy and will avoid work if they can and that they inherently dislike work (Hattangadi, 2015). Therefore, managers tend to believe that employees/teams need to be very closely should monitor and supervised. In the organization I work for, there are members that we expect to carry out a fair day of work, because of the leadership practice of Autocratic leadership style. And, For the employees who fail in performing, the organization will be issuing on a warning letter to monitor their behavior. 

Theory Y

Recent studies revealed that Theory Y is most and better adapted for organizations that need problem-solving and individual participation in decision-making, so it fits more the environment where creativity, problem-solving, and scientific issues exist (Touma, 2021). Theory Y is a participative style of management which assumes that people will exercise self-direction and self-control in achieving the organizational goals and objectives. It assumes that employees are committed to the organization’s objectives (Hattangadi, 2015). For example, in the organization, I work for in the education industry, we have Student Counselors who are primarily achieving their KPI beyond 100% in self-interest and attitude to perform better.

However, below table 1.0 will explain in an organization how Theory X and Theory Y people can identify with their characteristics differences.

Table 1.0 – Differences between Theory ‘X’ and Theory ‘Y’

	Theory ‘X’	Theory ‘Y’
1.	People have an inherent dislike for work and try to avoid it as far as possible.	People have basically good for working towards their own goals.
2.	Need direction	Capable of directing their own behavior.
3.	Not dependable	Workers are trustworthy
4.	Avoids responsibility i.e., people always avoid responsibility	Will assume responsibility given an opportunity
5.	Not dependable	Workers are trustworthy
6.	Workers are not concerned with the need of the organization.	Workers want to contribute to the success of the organization.
7.	Workers are not willing to change	Eager and able to change to grow and develop.

Source: Management & Enterprise (2010)

Managerial implication of Theory X and Y

·         It explains the many facts of managerial assumptions.

·      Many possibilities for motivating employees like money, personal satisfaction, achievement, and  challenges are identified.

·         It paved way for managers’ attitudes and viewpoints.

Therefore, this blog detailed how Theory X and Y people identify subjective to Managers’ perceptions, differences, critical analysis, and managerial implications of the theory in practice.

References

·         Armstrong, M., (2009) Human Resource Management Perspective, 11^th edition, P 324

·         Hattangadi, V., (2015). Theory X & Theory Y, International Journal of Recent Research Aspects, Vol 2   (4) [Online] Available at: < https://www.academia.edu/28189306/Theory_X_and_Theory_Y >   [Accessed on 13^th Nov 2022]

·         Janakiram, B. (2010) Management, and Entrepreneurship, 1^st edition, pp 119-120

·         Lawter, L., Kopelman, R. E., & Prottas, D. J. (2015). McGregor's theory X/Y and job performance: A   multilevel, multi-source analysis. Journal of Managerial Issues, 27(1-4) [Online] Available at:   <  https://digitalcommons.sacredheart.edu/cgi/viewcontent.cgi?article=1419&context=wcob_fac >   [Accessed on 12^th Nov 2022]

·         Singh, L.K., (2019). A CRITICAL ANALYSIS OF THEORY X & THEORY Y IN THE 21ST   CENTURY, EPRA International Journal of Economic and Business Review-Peer Reviewed   Journal,  Vol 7 (9).

·         Touma, J. (2021). Theories X and Y in Combination for Effective Change during Economic   Crisis,  Journal of Human Resource and Sustainability Studies, Vol 9 (1) [Online] Available at:   <  https://www.scirp.org/journal/paperinformation.aspx?paperid=107254 > [Accessed on 12^th Nov   2022]