The Human Side of Enterprise

The Human Side of Enterprise

By – Douglas McGregor (1960)

THEORY X-THEORY Y

Reprinted from

Theories and Models I Applied Behavioral Science

Volume 1: Individual

San Diego, CA: Pfeiffer & Company, 1991

In The Human Side of Enterprise, Douglas McGregor (1960) defined two sets of assumptions about human nature and explained how these affect people’s attempts to influence the behavior of others, especially how they affect managers’ attitudes toward employees.

McGregor suggested that the styles and approaches that manager’s (and others in authority) used, and their effectiveness or ineffectiveness, were affected by the subtle, frequently unconscious effects of their assumptions about people.

McGregor found that most managers and supervisors at the time believed that their employees were lazy, unambitious people who had to be threatened, bribed, directed, or punished in order to get them to work. Theory X amounted to either the “carrot” - the “stick” approach to motivation. Those who took a “soft” approach tended to use rewards and coaxing in place of coercion or the “carrot.” Those who used a “hard” approach tended to use punishment - the “stick.” These assumptions were rarely stated formally, but most organizations had policies and procedures based on this view. Jobs and goals were defined for the employees; decisions were made by upper management; rewards were based on tightly structured criteria; and those who deviated where punished in some way. Much of this viewpoint was based on the work of Frederick Taylor, whose “scientific management” theories had focused on the production aspect of work, with people considered much like pieces of machinery.

However, some managers, and many behavioral scientists, were developing a different point of view about people and their attitudes about work: a realization that people who are committed to their jobs are self-motivated and self-regulating and want to be involved more n their work. Some of this realization was the result of the motivation theory f Abraham Maslow (1973.)

McGregor labeled the two theories of human nature and attitudes about work “Theory X” and “Theory Y.” Theory X represents the traditional view of management; Theory Y represents the newer attitudes in organizational psychology.

This is not to say, of course, that all managers believe entirely in Theory X or Theory Y. Most managers probably believe that people are a combination of both, with tendency to behave as one type.

Theory-Y management is not a “soft” version of Theory-X management. In fact, it often requires more skill of the manager because it sets high standards and expects people to meet them. Theory Y implies more participative management, and this requires that the manager take risks. A Theory Y manager structures the job to allow employees room for personal growth. McGregor said, “The essential task of management is to arrange the organizational conditions and methods of operation so that people can achieve their own goals best by directing their own efforts toward organizational objectives” (1957, p.26).

In general, people:

THEORY X

THEORY Y

1. Have an inherent dislike for work and will avoid it if possible or do as little as possible.

1. Will work hard to achieve goals that they understand and to which they are committed

2. Do not seek out responsibility and avoid it if possible.

2. Are willing to assume responsibility for things in which they believe.

3. Either prefers to be directed in order to avoid responsibility or is not able to direct their own behavior.

3. Are capable of directing their own behavior.

4. Cannot be trusted to make good decisions.

4. Are capable of making decisions about their own endeavors and prefer to do so.

5. Are neither self-motivated nor achievement oriented.

5. Have a need to achieve.

6. Are not dependable.

6. Are trustworthy and dependable.

7. Are motivated only by money and other gains.

7. Are motivated by things that interest or challenge them, that contribute to their self-respect of feelings of accomplishment.

8. Are not concerned with the needs of the organization.

8. Want to contribute to the success of the organization of which they are a member.

9. Need to be supervised closely and coerced, controlled, or threatened in order to obtain adequate effort toward the achievement of organizational objectives.

9. Need to be provided with the resources to do the task and supported in its accomplishment.

10. Are not able to change.

10. Are eager and able to learn and grow in order to develop personally and professionally.

IMPLICATIONS OF THE THEORY

McCregor’s theory is more far-reaching than a classification of managers. It explains the failure of many management systems and introduces the concept of a new ways of managing. Because there is only so much money that can be offered as motivation and only so much control that can be applied, Theory-X management is limited. However, the possibilities for creating opportunities for people to obtain personal satisfaction, knowledge, achievement, challenge, prestige, and other rewards through work are unlimited. However, McGregor also realized that new ways of managing could not be implemented through old organizational systems.

McGregor’s work also is important for managers on a personal level. One’s identification with a theory says a great deal about one’s view of human nature. Persons who identify with the Theory-X viewpoint are saying in essence that they have a negative view of people, that people are lazy, have poor motivation, and do not strive to reach their potential. On the other hand, those who hold the Theory-Y view are more positive, believing that people are essentially growthful and that they will do their best if allowed. The Theory-X-Theory-Y model certainly offers opportunities for human resource development interventions such as team-building sessions, management development, and the like. But it also offers those in supervisory positions a chance to gain some self-knowledge. If one believes in the self-fulfilling prophecy, the implications of Theory X and Theory Y are substantial.

THEORY X	THEORY Y
1. Have an inherent dislike for work and will avoid it if possible or do as little as possible.	1. Will work hard to achieve goals that they understand and to which they are committed
2. Do not seek out responsibility and avoid it if possible.	2. Are willing to assume responsibility for things in which they believe.
3. Either prefers to be directed in order to avoid responsibility or is not able to direct their own behavior.	3. Are capable of directing their own behavior.
4. Cannot be trusted to make good decisions.	4. Are capable of making decisions about their own endeavors and prefer to do so.
5. Are neither self-motivated nor achievement oriented.	5. Have a need to achieve.
6. Are not dependable.	6. Are trustworthy and dependable.
7. Are motivated only by money and other gains.	7. Are motivated by things that interest or challenge them, that contribute to their self-respect of feelings of accomplishment.
8. Are not concerned with the needs of the organization.	8. Want to contribute to the success of the organization of which they are a member.
9. Need to be supervised closely and coerced, controlled, or threatened in order to obtain adequate effort toward the achievement of organizational objectives.	9. Need to be provided with the resources to do the task and supported in its accomplishment.
10. Are not able to change.	10. Are eager and able to learn and grow in order to develop personally and professionally.