What are McGregor's Theory X and Theory Y?

Human resource management has now become an essential part of an organisation. It helps fill the gap between the performance of employees and the strategic objectives of an organisation. In the field of HRM, you are required to undergo several models and frameworks, such as – The Harvard Framework, The HR Value Chain Advanced, The HR Value Chain, The 8-box Model by Paul Boselie, The Standard Causal Model, etc. McGregor's Theory X and Theory Y are one of them. In this blog, we have discussed a complete detail to McGregor’s Theory X and Theory Y.

The Theory X and Theory Y created by Douglas McGregor in 1950s and developed later in the 1960s. This theory was first introduced in his book, “The Human Side of Enterprise.” It generally highlights two different management styles such as –

Authoritarian (Theory X)

Participative (Theory Y)

McGregor's Theory X and Theory Y is a theory for human management and human work motivation. For example, if you think that your team members do not like their work and have a lack of interest and/or motivation, then, according to McGregor theory, you are required to use the Authoritarian (Theory X) style of management. This theory is very common and includes micromanaging people’s work to make sure that it is done properly.

Alternatively, if you think that your team members are taking pride in their work and see it as a challenge, then; you must adopt the Participative style of management. Managers following this approach trust their people to take responsibility and accountability of their work to make sure that it is properly followed.

No matter, what management style you choose, it is important to know the ways in which your perceptions of what bring motivation to your team members. However, our experts providing management assignment help in Australia will take on these two management styles described by McGregor.

Theory X

Managers following Theory X have a tendency to take a cynical view of team members and accept that they dislike their work and naturally unmotivated. As a result, the managers think that their team members need to be rewarded, prompted, or punished constantly so that they complete the task accurately.

Organizations, where works are managed by following McGregor Theory X, can be repetitive, and team members are often motivated by the "carrot and stick" method. Remuneration and performance appraisals generally depend on tangible results, like product output, sales figures, and also used in controlling staff and "keep tabs" on them. This management style takes responsibility that team member:

Dislike their work

Need constant direction and avoid responsibility

Needs to be threatened, forced, and controlled in completing and delivering work

Are required to be supervised continuously

Have no ambition, no incentive to work

As per the McGregor, an organization following Theory X approaches lean towards having several tiers of supervisors and managers to supervise, manage, and direct workers. He also says that authority is hardly ever delegated, and control remains consolidated. Managers actively get involved to get the tasks completed and quite authoritarian.

Even though management following Theory X approach has fallen heavily out of fashion in recent years, large organizations find that taking it into action is unavoidable because of a total number of people employed and due to short deadlines that they are required to meet.

Theory Y

Managers who have adopted McGregor Theory Y have a positive and optimistic opinion of people, and they use a participative style of management. This emboldens in being the more collaborative and trust-based relationship between team members and managers.

Managers and people with responsibility support in developing and enhancing their skills and recommend improvements. Appraisals and reviews are regular but, unlike the organisations following McGregor Theory X, they support open communication instead of control staff. The organisations following the Theory Y approach provide frequent promotion opportunities to the employee. This management style undertakes that team members are:

Likely to work on their proposal and plan

Involved in decision-making

Self-motivated

Taking accountability and responsibility for their work

View assigned task a challenging and fulfilling

Able to solve problems imaginatively and creatively

Nowadays, many organisations are using McGregor’s Theory Y which imitates workers' desire and willingness for meaningful careers.

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