Douglas McGregor ’ s Theory X Assumptions that the administrator may hold: 1. The average person inherently dislikes work and will avoid it whenever possible. 2. Because people dislike work, they must be supervised closely, directed, coerced, or threatened with punishment in order for them to put adequate effort toward the achievement of organizational objectives. 3. The average worker will shirk responsibility and seek formal direction from those in charge. 4. Most workers values job security above other job- related factors and have little ambition.

Douglas McGregor ’ s Theory Y Assumptions that the administrator may hold: 1. If it is satisfying to them, employees will view work as natural and as acceptable play. 2. People at work will exercise initiative, self-direction, and self-control on the job if they are committed to the objectives of the organization. 3. The average person, under proper conditions, learns not only to accept responsibility on the job but to seek it. 4. The average employee values creativity, I.e. the ability to make good decisions and seeks opportunities to be creative at work.

Likert ’ s Theory Theory X Theory Y System 1System 2System 3 System 4

System 1 System 1 Leadership is seen as having no trust in subordinates 1. Decision imposed – made at the top 2. Subordinates motivated by fear, threats, punishment 3. Control centred at the top of the hierarchy 4. Little superior-subordinate interaction 5. People informally opposed to goals set by the leadership

System 2 System 2 Leadership has condescending confidence and trust in subordinates 1. Subordinates seldom involved in decision making 2. Rewards and punishment used to motivate 3. Interaction used with condescension 4. Fear and caution displayed by subordinates 5. Control centred on the top of the hierarchy with some delegation

System 3 System 3 Leadership is seen as having substantial but not complete trust in subordinates 1. Subordinates make specific decisions at lower level 2. Communication flows up and down hierarchy 3. Rewards, occasional punishment, and some involvement are used to motivate 4. Moderate interaction and fair trust exist 5. Control is delegated downward

System 4 System 4 Leadership is seen as having complete trust in subordinates 1. Decision making is widely dispersed 2. Communication flows up and down and laterally 3. Motivation is by participation and rewards 4. Extensive, friendly, superior-subordinate interaction exists 5. High degree of confidence and trust exists 6. Widespread responsibility for the control process exists