People come to leadership positions through two dynamics. Jeff Bezos, founder and CEO of Amazon, used to bring an empty chair to meetings to signal and remind participants of the most important people that did not have a seat at the table: the customers. People will use work to satisfy their lower needs and seek to satisfy their higher needs during their leisure time. Several assumptions form the basis for this theory. Situational Leadership Theory & Styles | What is Situational Leadership? It has been a fact that sustainability and employee turnover in corporations rely heavily on the different styles of management practiced at given companies nowadays. 9899. They also dislike change and tend to resist it at all costs. [6] Due to these assumptions, Theory X concludes the typical workforce operates more efficiently under a hands-on approach to management. Theory Y results in an arrangement whereby individuals can achieve their own goals and happily accomplish the organizations goals at the same time. One view holds that in traditional organizations members expect to be told what to do and are willing to follow highly structured directions. He has now replaced the empty chair with Amazon employees with the job title Customer Experience Bar Raisers. The employee must be supervised or looked upon so that he or she works appropriately. In this capacity, leadership can be seen as a differentiated role and the nucleus of group activity. Thus, Salancik and Pfeffer reason that power and thus leadership flow to those individuals who have the ability to help an organization or group [overcome its critical contingencies]. [13], Theory X and Theory Y also have implications in military command and control (C2). C. employees are motivated mainly by the chance for advancement and recognition. Where a Theory X manager might threaten loss of employment in order to get employees to work on a Saturday, a Theory Y manager might appoint a temporary leadership title to anyone who chooses to show up to work on a Saturday. Its like a teacher waved a magic wand and did the work for me. They can use self-direction and self-control in this aspect. Proc. are not subject to the Creative Commons license and may not be reproduced without the prior and express written Under Theory Z management, not only do workers have a sense of cohesion with their fellow workers, they also develop a sense of order, discipline, and a moral obligation to work hard. Theory X and Theory Y were developed in the 1960's and describe two different, almost opposite, attitudes to motivation in the workplace. The secret to their success was not what they were producing but how they were managing their peopleJapanese employees were engaged, empowered, and highly productive. D. Job satisfaction is mostly related to higher order needs. A study of 3,600 managers from 14 countries reveals that most of them held assumptions about human nature that could best be classified as Theory X.37 Even though managers might publicly endorse the merits of participatory management, most of them doubted their workers capacities to exercise self-direction and self-control and to contribute creatively.38, Contemplating the central role of problem-solving in management and leadership, Jan P. Muczyk and Bernard C. Reimann of Cleveland State University offer an interesting perspective on four different leadership styles (see Exhibit 13.7) that revolve around decision-making and implementation processes.39. However, because there is no optimal way for a manager to choose between adopting either Theory X or Theory Y, it is likely that a manager will need to adopt both approaches depending on the evolving circumstances and levels of internal and external locus of control throughout the workplace. They typically allow organizational members significant amounts of discretion in their jobs and encourage them to participate in departmental and organizational decision-making. Several assumptions form the basis for this theory. This judgement could say a lot about your style of management. 147 lessons Theory Y managers believe employees would be motivated to meet goals in the absence of organizational controls, given favorable conditions. The hard approach to motivation relies on coercion, implicit threats, micromanagement, and tight controls essentially an environment of command and control. is based on negative assumptions regarding the typical worker. And the approach to and requirements of leadership are changing with it. It refers to the management style that believes in authoritarian and controlling behavior. a Theory X Manager typically believes their staff: dislike their work / are lazy cannot be trusted need to be closely supervised / micro-managed dislike or avoid responsibility have no inherent incentive or desire to work lack ambition work only for pay or because they have to have to be driven by rewards or punishment The rationale for the drawn-out time frame is that it helps develop a more dedicated, loyal, and permanent workforce, which benefits the company; the employees, meanwhile, have the opportunity to fully develop their careers at one company. In other words, employees have a strong desire for affiliation. Employees are initially obedient, but eventually dissatisfied and even rebellious, driving down productivity and achieving contradictory outcomes, further reinforcing the belief that workers are lazy and have to be externally motivated. In many instances, people are put into positions of leadership by forces outside the group. In the 1960s, social psychologist Douglas McGregor developed Theory X and Theory Y to explain how managers' beliefs about what motivates their employees can influence their management style. "Mission Command and Agile C2." Yoko is a Theory Y manager, and when I say Y here, think 'why not.' the average person dislikes work and will seek to avoid it when possible. Theory X and Theory Y represent two sets of assumptions about human nature and human behavior that are relevant to the practice of management. However, McGregor asserts that neither approach is appropriate, since the basic assumptionsof Theory X are incorrect. These managers tend to be more present in entry-level jobs where productivity and process are favored over independence or innovation, but they may show up at any company level and in any industry. Grace Hopper, retired U.S. Navy admiral, draws a distinction between leading and managing: You dont manage people, you manage things. flashcard sets. The hard approach results in hostility, purposely low output, and extreme union demands. A directive autocrat retains power, makes unilateral decisions, and closely supervises workers activities. Because managers and supervisors are in almost complete control of the work, this produces a more systematic and uniform product or work flow. Participative Leadership Theory & Examples | What is Participative Leadership? Theory Z stresses the need to helpworkers become generalists, rather than specialists. citation tool such as, Authors: David S. Bright, Anastasia H. Cortes. One assumption is that theyseek to build cooperative and intimate working relationships with their coworkers. People must be constantly directed, prompted, rewarded, or punished in order to complete their work. The employee is not responsible and hence must be supervised or directed towards the goal of the organization. One of his colleagues, Riya, believes that he is a diligent worker and gains satisfaction through working hard. "C2 Re-Envisioned: the Future of the Enterprise." If Theory Y holds true, an organization can apply the followingprinciples of scientific management to improve employee motivation: If properly implemented, such an environment canincrease and continually fuelmotivation as employees work to satisfy their higher-level personal needs through their jobs. Theory Y leaders are much more likely to adopt involvement-oriented approaches to leadership and organically designed organizations for their leadership group. Theory X refers to an authoritarian style and Theory Y refers to a participative/interactive style of managing employees. Most people are not ambitious, have little desire for responsibility, and prefer to be directed. OpenStax is part of Rice University, which is a 501(c)(3) nonprofit. Using this theory in these types of work conditions allows employees to specialize in particular work areas which in turn allows the company to mass-produce a higher quantity and quality of work. People need more than monetary rewards or the threat of punishment to do their jobs. According to McGregor, there are two opposing approaches to implementing Theory X: the hard approach and the soft approach. He was one of the most impactful, popular writers in the management field and is credited for modern management thinking. Because of this, a Theory X approach may be necessary although I believe it's best to give people the benefit of the doubt and go with a more empowering approach to begin with. Theory X explains the importance of heightened supervision, external rewards, and penalties, while Theory Y highlights the motivating role of job satisfaction and encourages workers to approach tasks without direct supervision. Finally, the permissive democrat shares power with group members, soliciting involvement in both decision-making and execution. In short, he studied heavily how our beliefs shape our behavior and thus how that behavior shapes the behavior of those around us. McGregor cautioned both types of managers against what he called self-fulfilling prophecies, whereby an employee will act just as the manager assumed he or she would due to the manager's own actions and behaviors. Another assumption is that workers expect reciprocity and support from the company. This unique platform allows team leaders to share visuals with teammates, work together on projects in real time, comment on documents and project updates, and work collaboratively with up-to-the-minute feedback. As a result, they think that employees need to be prompted, rewarded or punished regularly to make sure that they perform their tasks. As a result, the only way that employees can attempt to meethigher-level needs at work is to seek more compensation, so, predictably, they focus on monetary rewards. job satisfaction is primarily related to higher-order needs. Most managers will likely use a mixture of Theory X and Theory Y. According to Theory Z, people want tomaintain a work-life balance, and they value a working environment in which things like family, culture, and traditions are considered to be just as important as the work itself. In Theory X, Douglas McGregor summarizes the traditional view of management in a number of characteristic assumptions in which autocratic leadership style, close supervision and the hierarchical principle are the key elements. A variation on this theme is the concept of situational leadership, which advocates using different styles of management in different circumstances. Theory X is a management style and way of thinking that suggests people are purely motivated by earning income to support their personal goals. While there is a more personal and individualistic feel, this leaves room for error in terms of consistency and uniformity. O most employees know more about their job than the boss. He would hierarchically arrange the job roles with several supervisors for different departments, looking over employees. McGregor's X-Y theory is a salutary and simple reminder of the natural rules for managing people, which under the pressure of day-to-day business are all too easily forgotten. Theory X and Theory Y are two contrasting models of how your work force can be motivated. Much like a bomb, assumptions are a dangerous thing to make - just the slightest little mistake and you can end up blowing yourself up! 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