Effects of Theory X on Management: Applications of Theory X leads to dis-economies of Scale, a lack of innovation and ultimately a lack of sustainable success

 Managers leadership styles are autocratic and the communication flow is downward from managers to the employees. This may cause resistance from employees.  Centralization Process of Decision Making is followed which results in longer time for decisions to reach the employees and delays the process of completing the work  Finalization of organizational objectives gets little or no participation from employees.  It results in outside, control, with the manager acting as a performance judge who focuses generally on the past.  Theory X Managers rely on threat, coercion, control and act as performance judge which may lead to mistrust, restrictive supervision and a punitive work atmosphere. Effects of Theory Y on Management: It leads to cooperative objectives designed with input from both employees and managers, resulting in a stronger responsibility by employees for accomplishing the shared objectives.  It encourages leadership styles to be more participative and allows employees to seek responsibility for achievement of goals. Theory Y s leadership is likely to improve communication flow, especially in the upward direction.  It leads to control processes based on employees self-control. The manager is more likely to act as an instructor rather than a judge who focuses on how performance can be improved in the future rather than on who is responsible for past performance.