Theory X & Theory Y: Douglas McGregor

Mr. Douglas McGregor is responsible for introducing the theme of dual nature of human beings into management philosophy.  After studying the actual practices of various managers, he observed that people appear to have a capacity for tenderness, sympathy and love whilst at the same time, they possess tendencies towards cruelty, callousness, hate and malicious aggression.  There is an age-old clash between the two.  On the basis of the theme of dual nature of human beings, Mr. McGregor has propounded what is called two distinct views known as Theory 'X' and Theory 'Y'.

 

1. The traditional theory which he labeled as Theory 'X' – basically negative
2. The modern theory which he called Theory 'Y' – basically positive

 

Theory 'X'

 

This is a traditional theory of management philosophy.  According to this theory, the concept of management has developed by centralized direction and control.  The authority and control are taken as synonymous. The line of authority or chain or command traditionally goes directly from the top down through various layers of the organization, with some delegation of authority but full and detailed accountability up the line. At each organizational level, supervisors are linked to the next and lower levels by position descriptions and inflexible directions.  People at work level have no option except to obey the authority.  All general directives received from the top management are progressively particularized asthey flow downward along the chain of command. They are unconditional and specific orders for the workers.  This view of management is based on several assumptions which have been well-expressed by McGregor.  They are:-

 

*         The average human being has an inherent dislike of work and avoids it if he can.

*         Most people have to be coerced, controlled, directed and threatened with punishment to get them to put forth adequate effort towards the achievement of organizational objectives because of this dislike of work.

*         The average human being prefers to be directed, wishes to avoid responsibility, wants security and has little ambition.

*         The average individual is susceptible, not very bright and very often, a victim.

 

Many of the principles in management are derived from these assumptions.  Various techniques have been developed to control the human behaviour on the job by breaking down jobs into specialized elements, establishing norms of production, designing equipments to control the workers, devising intricate systems of incentive wage payments to reward the superior workers and penalize the laggards.  According to McGregor, this is the traditional theory of what workers like and what management must do to manage them.  According to this theory, workers are passive and even resistant to organizational needs.  They have to be persuaded and pushed into performance and this is the task of management.

 

 

Theory 'Y'

 

In disagreement with the assumptions of Theory 'X', McGregor feels that modern management is grossly understanding the interest and capacities of its organization members.  On the basis of the results of many psychological and social researches, he submits an opposing theory called Theory 'Y', as a more realistic assessment of the capabilities of people.  They theory presents an alternative management approach which does not involve abdication of managerial responsibility.  Management is still responsible for achieving the organizational objectives but on different assumptions about human behaviour and motivation, i.e. to secure the commitment of employees to organizational objectives which is directly related to the satisfaction of employee needs. The assumptions of Theory 'Y' are as follows:-

 

*         The spending of physical and mental effort in work is as natural as play or rest.  The average human being does not inherently dislike work.  Depending upon conditions, work may be a source of satisfaction or a source of punishment.

*         External control and the threat of punishment are not the only means for bringing about effort towards organizational objectives.  Man will exercise self-direction and self-control in the service of objectives to which he is committed.

*         Due to the rewards associated with their achievement, there is a commitment to the objectives.   Satisfaction of their ego and self-actualization needs can be direct products of efforts directed towards organizational objectives.

*         Under proper conditions, the average man not only accepts but seeks responsibility. 

*         Imagination, ingenuity and creativity in the solution of organizational problems is far more widely distributed in the organization than envisaged.

*         Normally, the intellectual potentialities of the average human being are only partially utilized.  In reality, people have unlimited potential.

 

These assumptions lead to a managerial approach which emphasizes the principle of mutual responsibility and share objectives.  The fact of interdependence in human organizations is widely recognized.  The theory is participative in the sense that supervisors consult their subordinates about proposed course of action before taking any decisions.  However, management still makes all official decisions for the organization as a whole.