Douglas McGregor’s Theory

Douglas McGregor presented the theories of motivation known as Theory X and Theory Y in the 1960s. These theories are predicated on the idea that in order to complete the task, management must collect all of the production components, including people. According to McGregor, management can exploit either of the demands, which are categorized under theories X and Y, to inspire his workforce (Stoyanov and Diderich, 2017).

Figure 1: Theory X and Theory Y  

(Source: Kurt, 2021)

Figure 1 indicates a person ("X") who refuses to work and a person ("Y") who embraces the opportunity to work

The notable distinction between Theory X and Theory Y of managers was made by McGregor in 1960. Managers that adhere to Theory X believe that their employees are uninterested, will shirk duty, and prefer to get by. According to Theory X, employees need to be managed and threatened with punishment According to Theory X, managers must give orders and maintain a close eye on every employee. This is an authoritarian style of management. As expected, the staff lacks motivation and despises their jobs (Allio, 2009).

McGregor, on the other hand, viewed Theory Y managers as those who make the assumptions that employees care about the company, will take initiative, and will practice restraint. According to research, the majority of people are capable of being creative and innovative (Bobic and Davis' 2003). This result supports that Theory Y assumptions encourage more inclusive decision-making, which ultimately benefits the company. According to Theory Y, managers should presume that their staff members are self-driven and motivated to achieve the goals of the company. This is known as the participative style of management. As a result, management in this situation aims to produce the most with the fewest possible efforts (Russ, 2011).

The underlying presumptions of Theory Y are as follows (Stoyanov and Diderich, 2017):

1.The employee is creative, self-motivated, and enjoys working with more responsibility, therefore they do not by nature despise their jobs. The population as a whole, and not just a small segment of it, has the ability to exercise a relatively high degree of imagination, originality, and innovation in the solution of organizational problems.

2. Since employees are self-directed and self-reliant, the threat of punishment does not always work to achieve the intended outcomes.

3. The benefits connected to an employee's attainment of goals impact how dedicated they are to them. The ego's satisfaction and the needs for self-actualization may be the most important rewards in this situation.

4. The incentives that come with achieving goals influence how committed people are to them.

According to McGregor, there are more factors that affect leadership, such as the followers' attitudes and needs, the form and structure of the organization itself, and the social, economic, and political environment. For McGregor, leadership was a complicated interplay between several factors rather than a personal trait. He was one of the first to make the case that leadership was more than just the traits of the leader; it also involved the interaction between the leader and the environment they were in (Theory X and Theory Y, n.d.).

 

References

Allio, R.J(2009) “Leadership – The Five Big Ideas”,  Strategy & Leadership, Vol. 37, No. 2, pp.4-12.

Arslan, A. and Staub, S. (2012). Theory X and Theory Y Type Leadership Behavior and its Impact on Organizational Performance:  Small Business Owners in the Şishane Lighting and Chandelier District. SSRN Electronic Journal. doi:10.2139/ssrn.2181347.

Bobic, M.P &Davis, W.E. (2003), “A Kind Word For Theory X: Or Why So Many Newfangled Management Techniques Quickly Fail” , Journal of Public Administration Research and Theory, 13(3), pp 239-264. 

Kurt, S. (2021). Theory X and Theory Y, Douglas McGregor. (online) Education Library. Available at:< https://educationlibrary.org/theory-x-and-theory-y-douglas-mcgregor/.>   (Accessed on 15th November 2022).

Mcgregor, D. (1960). DOUGLAS MCGREGOR: THEORY X AND THEORY Y. Thinker 026» INTRODUCTION» KEY THEORIES. (online) Available at: https://switcheducation.com/wp-content/uploads/2017/06/SEB_LYO_McGregor_Thinker.pdf. (Accessed on 14^th November 2022).

Russ, T.L.(2011) “Theory X/Y assumptions as predictors of managers’ propensity for participative decision making”,  Management Decision, Vol. 49, No. 5, pp.823-83.

Stoyanov, S. and Diderich, M. (2017). The Human Side of Enterprise. (online) Google Books. CRC Press. Available at: <https://books.google.lk/books?id=rEkrDwAAQBAJ&printsec=frontcover&dq=douglas+mcgregor > (Accessed 22 November 2022).

Theory X and Theory Y. (n.d.). (online) Available at: <https://www.jsscacs.edu.in/sites/default/files/Files/Module-3-%20Theories%20of%20%20Motivation.pdf. >(Accessed on 11^th November 2022).