WHY THEORY X AND Y : An Analysis On Douglas McGregor’s Theory As

Basis For Implementation On Management

INTRODUCTION

Management plays a key role in any organization. The backbone of

successful organizations is good management. It is a set of principles relating to

the functions of planning, organizing, directing and controlling, and the

application of these principles in harnessing physical, financial, human, and

informational resources efficiently and effectively to achieve organizational goals.

Many management theorists have defined management in their own ways and

one of them is Douglas McGregor.

According to Douglas McGregor, these theories are grounded on the

premise that management has to gather all the factors of production, which

also include human beings, to accomplish tasks. Douglas McGregor

believed that management can use either of the needs to motivate his

employees, as grouped under theory X and theory Y. However, theory Y

yields better results than the theory X; this is the significant purpose of this

case study which is to find and analyze the reasons why we one should

implement Theory X and Theory Y in managing their organizations.

The idea that a manager’s attitude has an impact on the motivation of an

employee was originally proposed by Douglas McGregor, a professor of

management at the Massachusetts Institute of Technology during the 1950s and

1960s. The Human Side of Enterprise (1960), two theories were proposed by

McGregor by which managers perceive and address employee motivation. He

referred to these opposing motivational methods as Theory X and Theory Y

management. Each assumes that the manager’s role is to organize resources,

including people, to best benefit the company. However, beyond this

commonality, the attitudes and assumptions they embody are quite different.

Douglas McGregor influenced the study of motivation with his formulation of two

contrasting sets of assumptions about human nature—Theory X and Theory Y.

THEORY X

A pessimistic view of human nature and assumptions were expressed by Theory

X, as stated on the following:

 The average person dislikes work and will avoid it if possible.

 Because people don’t like to work, they must be controlled, directed, or

threatened with punishment to get them to make an effort.

 The average person prefers to be directed, avoids responsibility, is relatively

unambitious, and wants security above all else.

on-the-job behavior is a view suggested by most people. Theory X managers tell

people what to do, are very directive, like to be in control, and show little

confidence in employees. They often foster dependent, passive, and resentful

subordinates.

Theory X relies on the authoritarian style of management, where the

managers are required to give instructions and keep a close check on each

employee. As it is assumed, the employees are not motivated, and they dislike

working.

THEORY Y

Theory Y management style is based on a more optimistic view of human

nature and assumes the following:

 Work is as natural as play or rest. People want to and can be self-directed

and self-controlled and will try to achieve organizational goals they believe

in.

 Workers can be motivated using positive incentives and will try hard to

accomplish organizational goals if they believe they will be rewarded for

doing so.

 Under proper conditions, the average person not only accepts

responsibility but seeks it out. Most workers have a relatively high degree

of imagination and creativity and are willing to help solve problems.

differences and encourage workers to learn and develop their skills. An

administrative assistant might be given the responsibility for generating a monthly

report. The reward for doing so might be recognition at a meeting, a special

training class to enhance computer skills, or a pay increase. In short, the Theory

Y approach builds on the idea that worker and organizational interests are the

same.

Theory Y relies on the participative style of management, where the

managers assume that the employees are self-directed and self- motivated to

accomplish the organizational objectives. Thus, here the management attempts

to get the maximum output with least efforts on their part.

Following are the assumptions of Theory Y:

The average human being does not inherently dislike work, they are

creative and self-motivated and likes to work with greater responsibilities.

Employees are self-directed and self-controlled and therefore the threat of

punishment is not only the means for getting the desired results.

The extent to which an employee is committed to objectives is determined

by the rewards associated with their achievement. The most significant rewards

in this context could be the satisfaction of the ego and the fulfillment of self-

actualization needs.

The average human being is ambitious and is ready to take

responsibilities. He likes to lead rather than to be led by others.

creativity in solving the complex organizational problems.

Thus, theory X and theory Y are two contrasting models that depict the set

of assumptions a manager holds on his employees, which may or may not

coincide with their general way of behaving. Therefore, these theories are based

on the attitude, not attributes.

If Theory Y holds true, an organization can apply the following principles of

scientific management to improve employee motivation:

 Decentralization and delegation: If firms decentralize control and reduce the

number of levels of management, managers will have more subordinates

and consequently need to delegate some responsibility and decision

making to them.

 Job enlargement: Broadening the scope of an employee’s job adds variety

and opportunities to satisfy ego needs.

 Participative management: Consulting employees in the decision-making

process taps their creative capacity and provides them with some control

over their work environment.

 Performance appraisals: Having the employee set objectives and

participate in the process of self-evaluation increases engagement and

dedication.
If properly implemented, such an environment can increase and continually

fuel motivation as employees work to satisfy their higher-level personal needs

through their jobs.

ANALYSIS

BEYOND THEORY Y

According to Douglas McGregor, is well-known for his “Theory X and Theory Y,”

which marked a distinction between the assumptions about human motivation

which underlie these two approaches, to this effect:

 Theory X assumes that people dislike work and must be coerced,

controlled, and directed toward organizational goals. Furthermore, most

people prefer to be treated this way, so they can avoid responsibility.

 Theory Y—the integration of goals—emphasizes the average person’s

intrinsic interest in his work, his desire to be self-directing and to seek

responsibility, and his capacity to be creative in solving business problems.

It is McGregor’s conclusion, of course, that the latter approach to organization is

the more desirable one for managers to follow.

A confusion for the managers who try to choose between these two

conflicting approaches caused by McGregor’s position. The classical

organizational approach that McGregor associated with Theory X does work well

in some situations, although, as McGregor himself pointed out, there are also
some situations where it does not work effectively. At the same time, the approach

based on Theory Y, while it has produced good results in some situations, does

not always do so. That is, each approach is effective in some cases but not in

others. Why is this? How can managers resolve the confusion?

On a study conducted by Morse and Lorsch from Harvard Business Review, it

sought to answer two important questions unanswered regarding Douglas

McGregor’s Theory :

1. How does the more formalized and controlling organization affect the motivation

of organization members? (McGregor’s most telling criticism of the classical

approach was that it did not unleash the potential in an enterprise’s human

resources.)

2. Equally important, does a less formalized organization always provide a high

level of motivation for its members? (This is the implication many managers have

drawn from McGregor’s work.)

Their study led to the following findings:

1. Human beings bring varying patterns of needs and motives into the work

organization, but one central need is to achieve a sense of competence.

2. The sense of competence motive, while it exists in all human beings, may be

fulfilled in different ways by different people depending on how this need interacts
with the strengths of the individuals’ other needs—such as those for power,

independence, structure, achievement, and affiliation.

3. Competence motivation is most likely to be fulfilled when there is a fit between

task and organization.

4. Sense of competence continues to motivate even when a competence goal is

achieved; once one goal is reached, a new, higher one is set.

Moore and Lorsch believed that no theory is better than the other, thus they

recommended that the highly probable managerial action is tailoring the

organization to fit the task and the people. If such a fit is achieved, both effective

unit performance and a higher sense of competence motivation seem to result.

RECOMMENDATION

Based from Dininni (2011), these are some important notes in implementing

Douglas McGregor’s theories;

 Assess your company's need for McGregor management theory

The relationship between leadership and employees in a company can be

reformed by McGregor’s theory of Management. Various tests may be utilized

which can help see exactly where an organization stacks up against McGregor

management theory.
 Get training in human resource management to understand McGregor's

theory

Webinars, Workshops, and Trainings that can help one develop the

background knowledge and practical expertise to put Douglas McGregor

motivation theory to work for the company is highly encouraged for no only

managers and leaders but for employees as well.

 Connect with a consultant who can help you implement Douglas

McGregor theory

Consultants or professionals with knowledge and experience in the Douglas

McGregor motivational theory can guide in maximizing the benefit of his

principles in the company’s unique environment.

 Put McGregor's theory of management to work for your company

Trainings on leadership and management grounded on Douglas McGregor X Y

theory may help engage employees' creativity and initiative in support of shared

goals. It is important to introduce the theory in the work environment gradually

and surely.