Theory X
In
this theory, which has been proven counter-effective in most modern practice,
management assumes employees are inherently lazy and will avoid work if they
can and that they inherently dislike work. As a result of this, management
believes that workers need to be closely supervised and comprehensive systems
of controls developed. A hierarchical structure is needed with narrow span of
control at each and every level. According to this theory, employees will show
little ambition without an enticing incentive program and will avoid
responsibility whenever they can. According to Michael J. Papa, if the
organizational goals are to be met, theory X managers rely heavily on threat
and coercion to gain their employee's compliance. Beliefs of this theory lead
to mistrust, highly restrictive supervision, and a punitive atmosphere. The
Theory X manager tends to believe that everything must end in blaming someone.
He or she thinks all prospective employees are only out for themselves. Usually
these managers feel the sole purpose of the employee's interest in the job is
money. They will blame the person first in most situations, without questioning
whether it may be the system, policy, or lack of training that deserves the
blame. A Theory X manager believes that his or her employees do not really want
to work, that they would rather avoid responsibility and that it is the
manager's job to structure the work and energize the employee. One major flaw
of this management style is it is much more likely to cause Diseconomies of
Scale in large businesses.
Theory
Y
In
this theory, management assumes employees may be ambitious and self-motivated
and exercise self-control. It is believed that employees enjoy their
mental and physical work duties. According to Papa, to them work is as natural
as play. They possess the ability for creative problem solving, but their
talents are underused in most organizations. Given the proper conditions,
theory Y managers believe that employees will learn to seek out and accept
responsibility and to exercise self-control and self-direction in accomplishing
objectives to which they are committed. A Theory Y manager believes that, given
the right conditions, most people will want to do well at work. They believe
that the satisfaction of doing a good job is a strong motivation. Many people
interpret Theory Y as a positive set of beliefs about workers. A close reading
of The Human Side of Enterprise reveals that McGregor simply argues for
managers to be open to a more positive view of workers and the possibilities that
this creates. He thinks that Theory Y managers are more likely than Theory X
managers to develop the climate of trust with employees that is required for
human resource development. It's human resource development that is a crucial
aspect of any organization. This would include managers communicating openly
with subordinates, minimizing the difference between superior-subordinate
relationships, creating a comfortable environment in which subordinates can
develop and use their abilities. This climate would include the sharing of
decision making so that subordinates have say in decisions that influence them.
This theory is a positive view to the employees, meaning that the employer is
under a lot less pressure than some one who is to influenced by a theory X
management style.