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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 decentralized • Assumes employees are happy to work, selfmotivated, 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 Theory X Motivation Management Style and Control Work Organization • Assumes people dislike work • Authoritarian • Centralized control Theory Y • Assumes people are self-motivated • Participative, employees can join in decision making • Managers retain the power to implement decisions • Specialized and often • Wider areas of skill or repetitive work knowledge • Employees can develop their expertise and make suggestions
Comparing Theory X and Theory Y Theory X Rewards and Appraisals Application • ‘Carrot and stick’ Theory Y • Separate from organizational controls • Frequent promotion opportunities • Widely considered • Widely adopted by types inferior to theory Y of organization that value • Large-scale and encourage production operation participation and unskilled • Suitable for knowledge production line work and professional • Blue collar work services • White collar work
Origin • Social psychologist Douglas Mc. Gregor of MIT expounded two contrasting theories in the 1960 s • Theories are about human motivation and management • Mc. Gregor personally promoted Theory Y more than Theory X
‘Theory X’ ‘Theory Y’ Management Staff Theory X - authoritarian, repressive style, tight control, no development, produces limited, depressed culture staff Theory Y - liberating and developmental, control, achievement and continuous improvement achieved by enabling, empowering and giving responsibility management © alan chapman 2001 -4 based on Douglas Mc. Gregor'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.