Theory X – Theory Y Management Theory.

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Presentation transcript:

Theory X – Theory Y Management Theory

Theory X Assumes employees are naturally unmotivated and dislike working Encourages an authoritarian style of management. Usually the minority In mass organizations, such as large scale production environment, theory X is unavoidable.

Theory Y A participative style of management that is de- centralized Assumes employees are happy to work, self- motivated, etc. More widely applicable People at lower levels of the organization are involved in decision making and have more responsibility

Comparing Theory X and Theory Y Motivation Assumes people dislike work Assumes people are self-motivated Management Style and Control Authoritarian Centralized control Participative, employees can join in decision making Managers retain the power to implement decisions Work Organization Specialized and often repetitive work Wider areas of skill or knowledge Employees can develop their expertise and make suggestions

Comparing Theory X and Theory Y Rewards and Appraisals ‘Carrot and stick’ Separate from organizational controls Frequent promotion opportunities Application Widely considered inferior to theory Y Large-scale production operation and unskilled production line work Blue collar work Widely adopted by types of organization that value and encourage participation Suitable for knowledge work and professional services White collar work

Origin Social psychologist Douglas McGregor of MIT expounded two contrasting theories in the 1960s Theories are about human motivation and management McGregor personally promoted Theory Y more than Theory X

Staff staff management ‘Theory X’ ‘Theory Y’ Management Theory X - authoritarian, repressive style, tight control, no development, produces limited, depressed culture Theory Y - liberating and developmental, control, achievement and continuous improvement achieved by enabling, empowering and giving responsibility staff management © alan chapman 2001-4 based on Douglas McGregor's X-Y Theory. More free online learning materials are at www.businessballs.com. Not to be sold or published. Sole risk with user. Author accepts no liability.