The
goal of any company is not only to make money, but also to keep and grow
through improved employee performance. While McGregor proposed his well-known X
and Y theories, the X and Y theories are still widely used in the field of
motivation and management
Theory
X managers believe that their employees will avoid taking on new
responsibilities, are lazy, and would rather just get by. According to Theory
X, workers must be frightened and controlled through punishment
Figure 1
Source:
Managers
in Theory X are focused on data and figures. They are uninterested in human
problems. As a result, appealing to their sense of morality or humanity is
illogical
The Theory X supervision style is based on a pessimistic view
of human nature and assumes the following
· Work is something that the ordinary individual despises and will try to avoid if at all feasible.
· Because people dislike working, they must be coerced, instructed, or threatened with a penalty in order to force them to do it.
· The person favors to be guided, avoids taking on responsibility, is rather unambitious, and prioritizes security.
People
can enjoy work while exercising significant self-control given favorable
conditions, according to the assumptions of theory Y
The
Theory Y supervision style assumes the following and is based on a more
positive understanding of human nature
· Work, like leisure and rest, is a natural part of life. People desire to be self-directed and self-controlled, and they will work hard to attain organizational goals that they believe in.
· Positive incentives can drive employees, and they will work hard to achieve corporate goals if they believe they will be rewarded for it.
· Under the right circumstances, the common individual not only accepts but actively seeks out responsibility.
Thus, Theory X portrays a pessimistic view of employee nature and behavior at work, whereas Theory Y portrays an optimistic view of employee nature and behavior at work.
3.1. Theory X and Theory Y Implications in the Banking Sector
All organizations have people, and it's crucial to understand what motivates them. As a result, it's crucial to figure out what motivates bank employees.
Today, Theory X is used by a very few number of banks. Theory X advocates for a high level of control and oversight. Employees are averse to banks changes, according to this statement. As a result, it discourages innovation.
Theory Y strategies are used by a lot of banks. According to Theory Y, managers should develop and foster a work climate that allows individuals to exercise initiative and self-direction. Employees should be provided an opportunity to contribute to the success of the bank. In a bank, Theory Y promotes decentralization of authority, cooperation, and participatory decision-making. Theory Y investigates and identifies the various ways in which an employee might make a substantial contribution to a bank. It aligns and matches the needs and aspirations of employees with the needs and aspirations of the enterprise.
List of References
Allio, R.J. (2009) “Leadership-The Five big ideas”, Strategy & Leadership, Vol.37, No.2, pp.4-12
Moore K., Cruickshank M., Haas M., 2006, “Job satisfaction in occupational therapy: A qualitative investigation in urban Australia”, Australian Occupational Therapy Journal, 53 (1) (2006), pp. 18-26
Morden, T. (2004) Principles of Management. 2nd edn. Aldershot: Ashgate Publishing Limited.
Kayode, O. (2013)” APPLICATION OF THEORY X AND Y IN CLASSROOM MANAGEMENT’, International Journal of Education and Research, Vol.1, No.5.
Peterson T.M. ,2007, “Motivation: How to increase project team performance”, Project Management Journal, 38 (4) (2007), pp. 60-69.
Russ, T.L. (2011) “Theory X/Y assumptions as predictors of managers’ propensity for participative decision making”, Management Decision, Vol.49, No.5, pp.823-83
Well written Indika. McGregor's theory has had a tremendous impact on management. Perhaps the most significant change is in how businesses regard their workers, from perceiving them as lazy and aimless to realizing that people want to work, self-direct, and contribute, and that it is managers' obligation and duty to create the conditions for them to do so (Gannon and Boguszak, 2013).
ReplyDeleteThanks your reply Janakan. 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.
DeleteAgreed, well explained Indika, according to the Mohamed and Nor (2013) for the Managers who adopt Theory X have an authoritarian style based approach amongst their staff and prefer the carrot stick approach to managing their staff (Mohamed and Nor, 2013). According to Aina (2014) managers who are under the assumptions of Theory Y, have optimistic views of their employees and believe that if their employees are given a chance and autonomy, will display creativity and enhance their performance and productivity without being shackled down by organizational policy and red tape.
ReplyDeleteThank Lakshan. Although both styles of management can motivate people, the success of each will largely depend on your team's needs and wants and your organizational objectives.
DeleteHi Indika, I would like to add a few more points regarding Theory X and Theory Y, McGregor sees these two theories as two quite separate attitudes, that have their benefits separately in any company also to any given manager or management, and these two theories are used extensively in management and motivation. These theories have been used by managers to formulate and develop motivation and positive management styles, strategies, and techniques (Nyi Akeke, 2005).
ReplyDeleteAgree an thanks Dileep and Theory X and Theory Y were first explained by McGregor in his book, "The Human Side of Enterprise," and they refer to two styles of management – authoritarian (Theory X) and participative (Theory Y).
DeleteHi Indika, well explained, X theory explains the impotence of supervision and external rewards where theory Y explains the motivation for the job satisfaction for the employees. Further Y employees were the self motivated employees that benefited for any organization to achieve the ultimate goal of the company (Hattangadi, 2015).
ReplyDeleteThanks and Theory X and Theory Y were proposed by management theorist Douglas McGregor. Both theories rest on the assumption that management is required to coordinate all aspects of the value delivery process to be productive.
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