McGregor’s Theory of X and Y

• According to McGregor managers have two distinct general assumptions  about their employees
• Each assumption comes with its own sets of assumptions about how workers can be motivated
• The management style adopted by the managed is influenced by their underlying beliefs about workers in general
• The two assumptions are known as:
• Theory X and
• Theory Y
• Theory X managers work under the assumption that workers:
  • Dislike work and working
  • They will avoid work wherever possible
  • Avoid responsibility and need to be directed
  • Have to be controlled, forced and threatened in order for them to work and do what is required of them
  • Need to be supervised at every step, with controls put in place
  • Need to be enticed to produce results otherwise
  • they have no ambition or incentive to work
  • They choose security above everything else
• In order to motivate workers Theory X managers:
  • Takes a carrot and stick approach to motivating workers
  • Introduce performance related pay
  • Introduce a lot of controls
  • There is an emphasis on supervisory roles within the organisation
  • Typically involves an autocratic leadership style
• Meanwhile Theory Y managers work under the assumption that:
  • Workers like work which they find as natural as play and rest
  • People will be self-directed to meet their objectives
  • Workers actively seek responsibility
  • Are motivated to achieve their life goals
• Under this theory employees can be motivated by:
  • Giving workers more responsibility via promotions
  • Making work more interesting through job enrichment
  • Creating a work environment where creativity is encouraged
  • Management By Objectives and
  • Allowing workers to participate in decision making
• It is important to note that under this theory the manager’s assumptions about workers tend to be self-fulfilling prophecies

NB There are no Theory X or Theory Y workers, there are Theory X and Theory Y managers

To access more topics go to the O Level Business Notes page.