The Human Side of Enterprise Sr. Patricia Tavis ELMP 7773 Daniel Gutmore, Ph. D.

Douglas McGregor (1906-1964) Noted American social psychologist Wayne State University (B.A., L.L.D.) Harvard (M.A. , Ph.D.) 1937-1948: MIT – First full time teacher of psychology 1948-1954: Antioch College – President 1954-1964: MIT - School of Industrial Management

“What are your assumptions (implicit as well as explicit) about the most effective way to manage people?” Douglas McGregor The Human Side of Enterprise

Theory X: Assumptions on Human Nature The average human being has an inherent dislike of work and will avoid it if he can. Must be controlled Must be directed “Hard management” “Soft management”

Theory Y: Assumptions on Human Nature The average human being needs to work, actively seeks responsibility and is creative and resourceful. Self-directed / motivated Seeks responsibility Problem-solvers Intellectual capabilities underused

Management Tenets Theory X Theory Y Organizes productive elements according to human needs Organizes the elements according to economic ends Directs people to fit needs of organization Assists people to recognize and develop responsibility People are passive and resistant to organizational needs People become passive as a result of experiences Management gets things done through other people People achieve own goals by directing their own efforts toward organizational objectives

Maslow’s Hierarchy of Needs Basis of McGregor’s “Theory Y” Self Actualization Esteem Belonginess Safety Shelter Food

Application of Hierarchy of Needs to Management and Workplace Theory X (ineffective management) Once a need is met, it no longer motivates behavior: therefore only unmet needs are motivational. Theory Y (effective management) Motivational emphasis shifts to social, ego, and self- actualization since most employees have physical and safety needs met.

Management Styles of Theory X * Led to ineffective management Hard Management Soft Management Methods Close supervision tight controls coercion Permissiveness needs for satisfaction Results Restriction of output Mutual distrust Sabotage Unionism Failure to perform roles Employees took advantage by demanding more but performing at lower level * Led to ineffective management

Management Styles of Theory Y * Led to effective management Decentralization of decision- making authority Delegation Job enlargement Participative management * Led to effective management

Management Theory X Theory Y Purpose Produce economic Produce economic results results Application Production Workers Managers & Professionals Conducive to Large scale operations Participation & Problem Solving Style Authoritarian Participative Adopted by Taylorist – followers Mayo’s human relations followers

Traditional view of direction and control Management Functions Theory X Traditional view of direction and control Theory Y Integration of individual & organizational goals Management Staff Staff Management

Scanlon’s Organizational Development (Theory Y) Participatory management based on four concepts: 1. Identity 2. Participation 3. Equity 4. Managerial Competence

* Management by integration and self control * The Scanlon Plan * Management by integration and self control * Equity Motivation Cost reduction and sharing Effective participation Created organizational control

Theory X and Theory Y in Educational Settings 1930’s – 1950’s Coercion Everyone learns the same / rote methods Theory Y 1960’s to Present Honors divergent thinking Uses various teaching methodologies

Teacher – Student Relationships Teacher’s managerial role: Create (in part) work environment Assign jobs Promote students Interact with students

Administrator – Teacher Relationships Delegation of responsibilities Job enlargement Participative style Performance appraisals

Thank you Sr. Patricia Tavis 2006