Question

In the 1960s, social psychologist Douglas McGregor developed two contrasting theories that explained how managers' beliefs about what motivates their people can affect their management style. He labelled these Theory X and Theory Y. These theories continue to be important even today. Compare the Theory X, Theory Y, and Theory Z assumptions of human relations.

Answer 1

Theory X Believes that

• people will attempt to avoid work whenever possible.
• Most people have little desire for responsibility, and instead prefer to be directed.
• people have little aptitude for creativity
• People are not interested or able to solve organizational problems.
• people must be closely controlled since they are self centered

Theory Y believes that

• People generally want to do good work
• People will be self-directed and creative
• People work to meet their organizational objectives
• If rewards are in place which help achieve self-fulfillment, People will be committed to their quality and productivity
• The capacity for creativity spreads throughout organizations.
• Most people can handle responsibility because creativity and ingenuity are common in the population

Theory Z

Theory Z makes assumptions about company culture. If a company wants to realize the benefits described above, it need to have the following:

• A strong company philosophy and culture:
• Long-term staff development and employment:
• Consensus in decisions:
• Generalist employees
• Concern for the happiness and well-being of workers:
• Informal control with formalized measures:
• Individual responsibility: