Theory X and Theory Y: Douglas McGregor

By,Karthik Bharadwaj

Theory X :

Theory X - Classical Theory

Three Assumptions

The average human being has an inherent dislike of work and will

avoid it.

Most people must be coerced, controlled, directed, and threatened

with punishment

The average human being prefers to be directed, wishes to avoid

responsibility, has relatively little ambition, wants security.

Neither explains nor describes human nature

Theory Y Prototype: The Scanlon Plan• Theory Y - Human Relations Theory

• Participative Management

• Two Central Features

▫ Cost-reduction sharing for organizational members - sharing the economic gains from

improvements in organizational performance

▫ Effective participation - a formal means of providing opportunities to every member of the

organization to contribute ideas for improving organizational effectiveness.

• Must be implemented appropriately

• Wastes time and undermines managerial power?

• Magic formula for every organizational problem?

• CONCERN for RELATIONSHIPS in the organization.

• As the need to increase commitment grows, so does the need to develop strong, communication-

based relationships among organizational members, particularly between supervisor and

subordinate.

Concern for PEOPLEDegree of personal commitment to one’s jobTrust-based accountability (vs. obedience-based accountability)Self-esteem for the individualInterpersonal relationships with co-workers

Concern for PRODUCTIONUse of people and technology to accomplish organizational tasksConcern for is not about quantity or quality

Assessment instrument does not represent personality traits of the manager -- instead, indicate a specific orientation to production and people