Equally important, does a less formalized organization always provide a high level of motivation for its members? Theory Y, is an advanced theory, wherein it is assumed that the workers are self-directed and self-motivated, for growth and development and takes active part in decision making. On the social psychology of agency relationships: Lay theories of motivation overemphasize extrinsic rewards. The optimal management approach under Theory X probably would be somewhere between these extremes. Second, although the behavior in the two organizations was different, the result in both cases was effective task performance. The type of motivation that the employees receive from their manager is down to their management style.
The soft approach, however, is to be permissive and seek harmony in the hopes that, in return, employees will cooperate when asked. Slow promotions, group decision-making, and life-time employment may not be a good fit with companies operating in cultural, social, and economic environments where those work practices are not the norm. The second, often called the participative approach, focuses on the desirability of involving organization members in decision making so that they will be more highly motivated. Managers who hold these assumptions believe that employees are motivated not just by material needs, but also by higher-level needs, such as self-esteem and a sense of fulfillment. All individuals, he concluded, however independent and mature, need some form of structure around them and some direction from others.
Therefore, these theories are based on the attitude, not attributes. Many managers tend towards theory x, and generally get poor results. Aside from of needs, there are so many other theories of needs that determine certain specific needs of an individual, which may offer a satisfaction associated with the work motivation. Description of Theory X In this theory, management assumes that employees are inherently lazy and will avoid work if they can. Human Side Of Enterprise 2. People will use work to satisfy their lower needs and seek to satisfy their higher needs during their leisure time. Third is a criticism of Theory Y followed by the concluding section, Theory X and Theory Y in the twenty-first century.
The result was Theory Z—a development beyond Theory X and Theory Y that blended the best of Eastern and Western management practices. Does effective unit performance result from the task-organization fit or from higher motivation, or perhaps from both? Do you care about the goals of the organization that you work for, or do you focus more on getting a regular paycheck to bring home? Theory X and Theory Y pertain to employee motivation and have been used in human resource management, organizational behavior analysis, and organizational development. Reset Your PasswordcloseEnter your email address and we'll send you an email with a link to reset your password. In this article, we are going to talk about the major differences between Theory X and Theory Y. Employees derive the satisfaction of social, esteem and self-actualization needs within this kind of environment.
The Douglas McGregor biography describes one of the most influential management theorists as a man whose revolutionary insights into the nature of leadership and management changed the relationship between managers and employees, paving the way for best practices implemented by some of today's most successful companies. Essentially, Theory X assumes that the primary source of employee motivation is monetary, with security as a strong second. Your rating is more than welcome or share this article via Social media! McGregor called this Theory Y. So, it's important to understand how your perceptions of what motivates them can shape your management style. As such, it is these higher-level needs through which employees can best be motivated.
The idea behind using letters X and Y, perhaps seems to be using a neutral terminology, which does not convey any sense of badness or goodness associated with these theories. People can focus on the objectives they pursue through self-direction and self-control. Please use it as such. One wonders if the idea was not considered strong enough to stand alone with a completely new name. According to Theory Z, people want to maintain a work-life balance, and they value a working environment in which things like family, culture, and traditions are considered to be just as important as the work itself. It is interesting to note that the less successful Carmel laboratory had more of its decisions made at the top.
After reading you will understand the background and the practical basics of these leadership styles. However, neither of these extremes is optimal. As Latham and Budworth 2007 noted, however, McGregor articulated these ideas in a way that few others could. While money may not be the most effective way to self-fulfillment, in a Theory X environment it may be the only way. You can also find us on , and. .
Theory Y The higher-level needs of esteem and self-actualization are continuing needs in that they are never completely satisfied. While there is a need to further investigate how people who work in different settings differ in their psychological makeup, one important implication of the Contingency Theory is that we must not only seek a fit between organization and task, but also between task and people and between people and organization. Theory Z also makes assumptions about company culture. Work is as natural as play or rest. A mix of practices which ensure a healthy blend of systems and the freedom to perform at the work place is likely to motivate the employees more.
Thus, here the management attempts to get the maximum output with least efforts on their part. If properly implemented, such an environment would result in a high level of workforce motivation as employees work to satisfy their higher level personal needs through their jobs. Distribution of influence: The Akron plant and the Stockton laboratory also differed substantially in how influence was distributed and on the character of superior-subordinate and colleague relations. You may, however, find that you naturally favor one over the other. As a result, the only way that employees can attempt to meet higher-level needs at work is to seek more compensation, so, predictably, they focus on monetary rewards. The most effective and the most equitable course of leadership is to satisfy the higher needs of workers on all levels the needs of self respect, initiative and recognition of competence. This reflects workers' increasing desire for more that provide them with more than just money.