Theory X and Theory Y in business management

Table of Contents

Theory X and theory Y provide a profound influence on business management industry. Douglas McGregor is one of renowned business thinkers who have played a lot in developing ideas on how to run the business. Humans tend to develop certain behaviors in the work place. The two theories of McGregor summarize human behavior at the work place environment. He developed a philosophical view on how organizations may motivate employees. Each theory gives an overview perception that managers have over their employees, (McGregor, 2010).

Theory X (TX) is an autocratic type of leadership management style. The style is used by different managers in managing organizations and firms, in different industries. Managers under TX are known as TX leaders, and they are believed to have a preconceived notion on those who are below them. It is a belief according TX that subordinates do not respond in respect to the organization’s expectations. Leaders tend to believe that employees in their industry must be rewarded or motivated by money in order to develop positive results. In order to fulfill an organization’s objectives and goals, employees must be motivated monitory. This is a management theory that shows negative aspects of employees towards work. According to TX, humans dislike work, and that they must be closely supervised in order to accomplish firm’s expectations, (McDaniel & Gitman, 2008).

Theory Y (TY) is different compared to TX. This theory has a different approach as compared to the previous one. TY is a management leadership style that focuses on the employee’s personal aspects and on how to realize objectives and goals of the company. It is one of the best leadership style used by most business in the world. Instead of focusing on an individual or company’s benefit alone, the style compares ways under which both sides may benefit. The style focuses on aspects that may motivate employees in order to excel in their organization and profession. The approach helps in determining possible aspects that account to an employee’s level of motivation, (McGregor, 2010).

According to TY, employees are naturally motivated and require no supervision in order to accomplish their tasks. Since individuals are self motivated, they tend to be productive. Employees under TX type of leadership always underperform simply because they dislike job hence they must be followed in order to accomplish given tasks. A TY leader is on a better position as compared to TX leader simply because he or she deals with employees who have active personalities. Determining motivation strategies in TY is slightly easier unlike in TX where employees dislike work. According to research, leaders should develop strategies that conjoin individual’s needs and professional needs in order to understand motivation strategies to use. A self directed work environment enables an organization achieve goals and objectives and at the same time respond positively to individuals concern, (McDaniel & Gitman, 2008).

Theory X and Theory Y

Style

Pros

Cons

Theory X

$1· Work done faster for managers provide micro-managing aspects.

$1· Little errors due to supervision.

$1· Lack of employer’s satisfaction.

$1· Employees become robotic to accomplish their tasks.

$1· Employees avoid work when no supervision goes around.

$1· Must have input to get the output.

Theory Y

$1· Innovation of new ideas because there is no supervision.

$1· Creation of new opportunities for employee thinks outside work confinements.

$1· Work considered as part of life.

$1· Work organized under wider area of skills.

$1· Some employees lack self motivation aspect thus they tend to waste time when left to accomplish tasks by their own.

$1· An organization may reward or motivate employees poorly.

According to my view, no single leadership is best in all situations. There are individuals who are self motivated while others must be pushed in order to accomplish their task. Research shows that individuals are of different types thus there are those who dislike work and others work without supervision. In that line, leaders who want to realize goals of their organization must apply the two where necessary.

In theory Y management, employees tend to be self motivated simply because they like the job. New idea development is encouraged, and decisions are left to employees although implementation gets some control from the top level. In democratic leadership, leaders give employees power to develop and implement decisions on their own. Such type of leadership gets an organization into risk simply because some individuals dislike work and must be supervised to accomplish duties. Since in the democratic leadership leaders must abide with votes, some decisions may mislead an organization due to personal interest of individuals, (McDaniel & Gitman, 2008).

Leaders must understand the concepts of TX and TY in order to develop a good work environment. Employees are different hence there are those who dislike work and some are self motivated. In order to encompass all, a good leader must understand how to apply both styles when dealing with different employees, (McGregor, 2010), (McGregor, 2010).

Reference:

McGregor, D. (2010). The Human Side of Enterprise: McGrawHill

McDaniel, C. & Gitman, J. L. (2008). The Future of Business: The Essentials: Cengage Learning

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