McGregor Theory X

McGregor Theory Y

INTRODUCTIONDouglas Murry McGregor was born in 1906 in

Detroit at U.S.A.

He earned a B.E (mechanical) from Rangoninstitute of Technology from Wayne state University in 1932.

And then he earned a M.A and PHD in psychology from Harvard university in 1944 and 1955 respectivaly.

He was president of Antioch collage from 1948-1954.And he was also a management proffesor in cambridge.

He written a book “THE HUMAN SIDE OF ENTERPRISE” in 1960.

In his book he formulated two theories to explain about human behaviour.

Theory x is negative, traditional and autocratic in style.

Theory y is positive, participatory and democretic in style.

THEORY XIt indicates traditional approach to managerial

motivation and control.

It represent autocratic style of leadership.

It is negative in style.

It includes demotion, postponing the increments, punishment, penalty, lay-offs, pay cuts etc…..

Assumptions of Theory X1. People to avoid work and dislike work.

2. They lack intensity.

3. They do not want to take any responsibility.

4. They are idle and work slowly.

5. They avoid making dicision.

6. They resist changes.

7. They are not very bright.

8. They are indifferent to organisational needs.

9. They are self centered by nature.

10. They are by nature resistant to change.

Remidies1. Autocratic style of leadership.

2. The workers are to be directed towards the goals of organisation.

3. It employs force, coercion punishment in order to motivation.

4. The manager should not be too soft cornerd.

5. Such people are to be discarded.

Theory-y It is modern approach to management and more

democratic.

People are not lazy and reliable.

It emphasizes democratic leadership.

If they are properly motivated, they could really be creative.

It aims at creating opportunities, removing obstacles, providing guidance,etc….

A manager will be more of a coach and counsellor.

It includes rewards and incentives may be financial or non-financial nature.

Financial rewards includes more pay, bonus, increment, more dearness allowance.

Non-financial incenties include free accommodation, promotion, medical facility, free education, recreation facility, canteen facility, travell facility etc…

Assumptions of Theory-y People do not dislike work.

They have integrity.

They are committed to the responsible objective of the enterprise.

They exercise self control and need no punishment.

They want to achieve.

They do not avoid responsibility.

They are direct their behaviour.

They want to take initiative.

They make efforts to achieve to goals of the organisations.

REMEDIES Democratic style of leadership.

Management has to remove obstacles.

Management has to create opportunities.

It advocates decentralisation of authority.

Manager will counseller and less of a commander.

Possitive motivation.

Appraisal of McGregor’s contribution.

His theory X and theory y are important tools in understanding the behavior of human beings and in designing the incentive schemes to motivate the employees.

Neither of the tow theories is fully applicable in all the situations and to all types human beings.

However, Theory X is more applicable to unskilled and uneducated low level workers.

Theory Y is more applicable and understand their responsibilities.