Management - 12manage

Theory X Theory Y (McGregor)
Theory Z (Ouchi)

Hard or Soft Management? Explanation of Theory X Theory Y of McGregor. ('60). Explanation of Theory Z by William Ouchi. ('81)

What is Theory X and Y? Description

Douglas McGregor, an American social psychologist, proposed his famous Theory X and Theory Y models in his book 'The Human Side Of Enterprise' (1960).
 

 

Theory X

Theory Y

Assumptions

 Humans inherently dislike working and will try to avoid it if they can. People view work as being as natural as play and rest. Humans expend the same amount of physical and mental effort in their work as in their private lives.
  Because people dislike work they have to be coerced or controlled by management and threatened so they work hard enough. Provided people are motivated, they will be self-directing to the aims of the organization. Control and punishment are not the only mechanisms to let people perform.
  Average employees want to be directed. Job satisfaction is key to engaging employees and ensuring their commitment.
  People don't like responsibility. People learn to accept responsibility and seek responsibility. Average humans, under the proper conditions, will not only accept, but even naturally seek responsibility.
  Average humans are clear and unambiguous and want to feel secure at work. People are imaginative and creative. Their ingenuity should be used to solve problems at work.

Application

 Shop Floor, Mass Manufacturing. Production workers. Professional Services, Knowledge Workers. Managers and Professionals.

Conducive to

 Large scale efficient operations. Management of Professionals, Participative Complex Problem Solving.

Management Style

 Authoritarian, Hard Management. Participative, Soft Management.

 

McGregor sees Theory Y as the preferable model and management method, however he thought Theory Y was difficult to use in large-scale operations.

 

Theory Z - Ouchi

In 1981, William Ouchi came up with a variant that combined American and Japanese management practices together to form Theory Z, having the following characteristics: long-term employment - collective decision-making - individual responsibility - slow evaluation & promotion - implicit, informal control with explicit, formalized measures - moderately specialized career paths - and a holistic concern for the employee, including family.

 

Theory X Theory Y Theory Z Forum

Recent User Comments
 - Nigeria Theory X and Theory Y "In 9 out of 10 cases, the employer or leader determines the way workers behave. Workers who are treated as though they were incapable of responsibility are likely to become irresponsible even if they did not enter the organisation with such traits. Employees should be treated with a measure of respect and given good leadership."    9
David - U.S.A. Work Ethic (X) "I believe that most employee's want to work. There will always be a small percentage that will go against the grain. The problem is we fail each other. This happens by taking a motivated employee and not meeting his needs to do his job successfully. Examples: no parts to fix machine, no stock to run machine, no training."    11
Mahesha Goleby - Australia Z found in <5% "Spiral Dynamics & Personal & Corporate Values Journey research indicates that Z would be a 'yellow' - a systems type person - who works for the 'big picture'. A rare, but growing demographic, as the world's cultures advance in their thinking & behaviour."    21
R. Angel - Philippines Theory X anywhere "As long as an individual or group of individuals exists, Theory X will prevail because we cannot uproot the source of unpleasant behavior and attitude, which is innate, in man. The challenge is to accept and understand the condition/s of every human person here and now."    10
Toby - Philippines Balance "The 2 theories presents 2 extremes of management styles in order for us to the opposite poles of peoples tendencies during work. Therefore it is a tool to help us strike a balance in managing people."    14
Best User Comments
Yasin Nasirov - Azerbaijan Game Theory "Game theory is the decision making skills in conflict situations.I think that it is the best way of management and economy to analyze the rational thinking by mutual understanding and bilateral relations among partners ,owners and managers . Therefore, Game theory has a profound effect on Theory X and Y . Salient outcomes and payoffs can be attained by applying Theory X and Y as well as Game theory"    51
kamakshi - India Theory Y "Theory Y simply says " Building a Management with Professionalism as well as freedom""    47
charu - india theory x & y "i think application of theory x and y also depends on the cultural backround of yhe enterprise. infact, they are two ends of the same continuum...."    18
Wes - US BMGT "I don't believe there is simply one preferred management style. I believe situations and personality will dictate what style takes precedence."    13
Toby - Philippines Individual Backgrounds "Theory Y states an ideal way on how people should work and interact. In theory X, it is when their work or personal situations and experiences disrupt their rhythm and motivation to excel in their workplace. So being able to create a motivated and aggressive organizational culture, giving the right working conditions, resources, and incentives, and being able to assess the correct training needs of the employees, and of course getting the right people will definitely rule out Theory X."    9

Theory X Theory Y Theory Z Special Interest Group



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Compare with Theory X Theory Y:  Leadership Styles  |  Managerial Grid  |  Leadership Continuum  |  Situational Leadership  |  Bases of Social Power  |  EPIC ADVISERS  |  Hierarchy of Needs  |  Expectancy Theory  |  Path-Goal Theory  |  Hawthorne Effect  |  ERG Theory  |  Herzberg Two Factor Theory  |  Change Management  |  Seven Surprises  |  Seven Habits  |  Eight Attributes of Management Excellence  |  Five Disciplines  |  Ten Principles of Reinvention  |  Fourteen Points of Management  |  Charismatic Leadership  |  Theory of Needs

 

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  § Mohammed Fayaz (Luton) Communication Problem at Workplace "Helpful"

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  § Gopakumar.V (India) Theory Z "Theory Z can be rather related to the growth stage developement process, wherein on atainment of a particular age, one does not wish to take risk in life, looks for long term peace and enjoys lighter side of the event rather than involving in depth and consuming problems. A higher side inclination to Theory X and intrinsic value formation attachment to Th.Y to some extent. But the energetic involvement during the initial ages into explorative mood could be attributed to intrinsic motivation tending to Th.Y pattern and on the other hand at higher age level, leaving aside tougher things and enjoying lighter things can be an inclination to Th.X. So this Z Theory, is nothing but an integrated approach to Th X and Y if we account based on aging fator. This supports my research on 4359 persons of varying ages in Indian conditions."
  § Nolana (USA) Theory Z "Interesting points about theory Z and stages of growth and aging. However, I would consider myself of this persuasion, but I am not even 40 yeras of age. What median age does the tyipcal person switch to theory Z thinking? I feel I have thought this way about working since I began doing chores as a child. Perhaps ideals about work are influenced by character traits as well as other factors. I would like to read your research; it sounds interesting."

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  § Hein (Netherlands) Theory X innate? "I disagree with R. Angel. The attitudes and/or behavior of BOTH theory X and Theory Y could be innate to some extent for certain people. But more importantly, I think we behave in a theory X way in certain circumstances or in certain periods in our live, while in other circumstances or periods we may operate in a Theory Y mode. So rather then only innate, our behavior is controlled by the circumstances and timeframe."

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  § TK Rangacharylu (India) Y Theory of Management "Sometimes we apply X to Y and get confused in the industry."
  § khmilevskaya (russia) BMGT "I think that theory Y is more preferable, but I agree McGregor that it is difficult to use. However, the X theory looks more like real."
  § Venkateswaran (India) Theory X,Y & Z "While comparing all the 3 theories, theory Z seems to be applicable and effective than other 2 theories"

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  § Danylle (us) BMGT 364 "I agree I different styles of managment are going to depend on the specific situation and the needs of those being managed. what works for some may not work for others"

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