Appendix Writing & Group Research Project

McGregor’s Theory of Work Motivation

1. Introduction
Douglas McGregor (1906-1964), one of the profound
management writers is celebrated for his contribution in
setting up bases for modern theories of motivation. Douglas
McGregor proposed his “Theory of X & Y”, in his book named
“The Human Side of Enterprise” which is considered as one
of the influential management books of early modern times.
The theory emphasizes on use of differential approach of
motivation based on behavioral analysis of employee in
formed on managers perception (Russ, T.L. ,2013).

However, the theory has been questioned at different times

for its assumptions of involvement of managements
judgement as a basis for segregating employees for using differential approach of
motivation. The theory still remains as a reference guide for modern fellow
researchers.

The theory is based on the assumption that nature of all the employee may not be
same & thus, motivation technique applicable to them may not be same. McGregor
(1960), has explained differential approach of motivation by dividing employees into
diametrically two different groups based in their nature:
A. Theory X
B. Theory Y

2. Theory X
According to McGregor (1960), employees are characterized by inherently lazy attitude
& always dislikes the concept of work. Employees are less dynamic & always reluctant
to change, thus management shall assume full responsibility of guiding, managing &
controlling them. Employees will always look forward to avoiding their work & lacks
self-motivation towards work. They are less interested towards objective of the work &
are always tempted by incentives.

Management relies on monetary rewards for motivating employees and getting work
done. This theory gives no consideration of satisfaction of higher-level needs of
employees. Management form’s pessimistic opinion towards employee behavior which
focuses on getting work done through traditional organizational structure with
hierarchy, narrow span of control, strict supervision & autocratic approach of decision
making. Since, the theory concentrates on what’s of motivating factor, it is appropriate
to refer Theory ‘X’ as content theory.

During the 1980s, automotive industry in USA made large demand for Japanese
products. Japanese products were renowned for their superior quality & lower prices. It
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was noted that the revolution made by Japanese companies was reflection of hard-
working & motivated workforce in Japan. In this way managing people by fulfilling
employees need was proven to be effective for Japanese companies (Richard L. Daft,
2004)

3. Theory Y
According to McGregor (1960), management assumes employees to be goal-oriented,
innovative, ambitious & self-controlled. Management believes that employees are
capable of finding creative solutions for problems in work-place and such capacity is
unutilized to some extent. Employees always seek out to accept changes and
challenging jobs. Employees are dedicated to accomplishing assigned work & accept
responsibilities. Work, itself can act as a motivating factor if the management can
provide favorable environment for employees to work on.
Management relies more on competency of employees to take decision on their own
compared to authoritarian approach as per Theory X. Employee are encouraged to
exercise freedom of decision making & be more experimental. The managers develop
climate of trust with employees which includes managers communicating freely with
their sub-ordinates to minimize the difference between superior- subordinate
relationships. This approach emphasizes on modern organizational hierarchy,
participative decision making & freedom of expression of opinion.

Theory Y can be best explained with examples of corporate offices in Silicon Valley like
Google, YouTube etc. Employees are encouraged to follow their passion (music,
reading, swimming & other indoor activities) and made available very peaceful working
environment, so that employee’s motive towards work is always held high.

4. Development & Criticism

Before 1960s, the almost all managers used to believe that management needs to be
more of authoritarian than participative in order succeed & make effective utilization of
workforce. McGregor was the first one who alerted management that real success of
an enterprise depends on recognition of organizational needs as well as employees
need (Robert A. Cunningham, 2011).
Though, the ‘Theory Y’ proposed by McGregor is often criticized for being more
idealistic & a paper tiger approach. It is important to notice that McGregor’s theory is
often misunderstood by managers. As some believe, McGregor was not trying to
propose a blueprint of organizational success by utilization of one best method, but an
initiation of discussion on act of management & organizational culture (CRIS Bulletin,
2013). McGregor (1957), has himself expressed that it needs years of exploration &
development in order to utilize such concept in an effective manner by entities.

5. Conclusion
McGregor’s theory of X & Y doesn’t present choices for manager between two
alternatives to be followed by them. There is no point of adhering to a best alternative

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for better organizational results. In fact, managers can benefit themselves by the help
of creative & constructive discussion on the concepts put forward by McGregor.

References:
 Gannon. D, Bogus Zak. A, 2013. Douglas McGregor’s Theory X And Theory Y.
CRIS Bulletin 2013
< http://archive.sciendo.com/CRIS/cris.2013.2013.issue-2/cris-2013-0012/cris-
2013-0012.pdf >
 McGregor, 1957. “Human Side of Enterprise.” Management Review 46: p.622-
628.
 McGregor, 1960. The Human Side of Enterprise. New York, NY: McGraw-Hill.
P.33-34
 Richard L. Daft, Theory Z: Opening doors of participative management.
Vanderbilt University
<https://www.researchgate.net/publication/
292279521_Theory_Z_Opening_the_corporate_door_for_participative_managm
ent >
 Robert A. Cunningham, 2013. “Douglas McGregor: A Lasting Impression”, The
Organization
<https://iveybusinessjournal.com/publication/douglas-mcgregor-a-lasting-
impression/ >
 Russ, T.L., 2013. "The relationship between Theory X/Y: assumptions and
communication apprehension, Leadership & Organization Development Journal,
<https://www.emerald.com/insight/content/doi/10.1108/01437731311326675/
full/html>

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