X Y Theory: Douglas McGregor
Introduction
Douglas McGregor, an American social psychologist, proposed his famous X-Y theory in his 1960 book 'The Human Side Of Enterprise'. Theory x and theory y are still referred to commonly in the field of management and motivation, and whilst more recent studies have questioned the rigidity of the model, Mcgregor's X-Y Theory remains a valid basic principle from which to develop positive management style and techniques. McGregor's XY Theory remains central to organizational development, and to improving organizational culture.

Some of McGregors ideas were strongly influenced in part by Abraham Maslow's need satisfaction model of motivation. His hierarchy of needs is based on the idea that motivation comes from need. "Needs provide the driving force motivating behavior and general orientation. Theory Z was developed by not by Mcgregor, but by William Ouchi.

Theory X : Authoritarian Management Style
Theory X assumes that people have an inherent dislike of work and they will avoid it if they can. Consequently, people have to be controlled and directed because they don’t want responsibility. Authoritarian management makes sure that employees get direction and do as they’re told.

  • The average person dislikes work and will avoid it he/she can.
  • Therefore most people must be forced with the threat of punishment to work towards organisational objectives.
  • The average person prefers to be directed; to avoid responsibility; is relatively unambitious, and wants security above all else.
Theory Y:'Participative Management Style
Theory Y’s assumptions are that work is a natural human activity and people like to work and get things done. Consequently, people will do whatever is necessary to achieve the objectives of the job without direction and are willing and able to seek and accept responsibility. Participatory management trusts employees to make input into how the work is done and gives employees latitude in self-management to get the job done.

  • Effort in work is as natural as work and play.
  • People will apply self-control and self-direction in the pursuit of organisational objectives, without external control or the threat of punishment.
  • Commitment to objectives is a function of rewards associated with their achievement.
  • People usually accept and often seek responsibility.
  • The capacity to use a high degree of imagination, ingenuity and creativity in solving organisational problems is widely, not narrowly, distributed in the population.
  • In industry the intellectual potential of the average person is only partly utilised.
Theory Z: William Ouchi
Theory Z is often referred to as the 'Japanese' management style, which is essentially what it is. It's interesting that Ouchi chose to name his model 'Theory Z', which apart from anything else tends to give the impression that it's a Mcgregor idea. One wonders if the idea was not considered strong enough to stand alone with a completely new name... Nevertheless, Theory Z essentially advocates a combination of all that's best about theory Y and modern Japanese management, which places a large amount of freedom and trust with workers, and assumes that workers have a strong loyalty and interest in team-working and the organisation.

Theory Z also places more reliance on the attitude and responsibilities of the workers, whereas Mcgregor's XY theory is mainly focused on management and motivation from the manager's and organisation's perspective. There is no doubt that Ouchi's Theory Z model offers excellent ideas, albeit it lacking the simple elegance of Mcgregor's model, which let's face it, thousands of organisations and managers around the world have still yet to embrace.

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