ORGANISATIONAL

BEHAVIOUR

MOTIVATIONAL THEORIES
THEORY X AND Y
BY KIRAN JAGANNIVASAN
BATCH 11
• Douglas McGregor proposed two distinct views of human beings:
• one basically negative, labelled Theory X, and
• the other basically positive, labelled Theory Y.

• Under Theory X, managers believe employees inherently dislike work and must therefore
be directed or even coerced into performing it.
• Under Theory Y, in contrast, managers assume employees can view work as being as
natural as rest or play, and therefore the average person can learn to accept, and even seek,
responsibility.
THEORY X ASSUMPTIONS

Theory X represents the carrot-and-stick assumptions on which traditional organisations are

based. Its assumptions are that:
• the average person is lazy and has an inherent dislike of work;
• most people must be coerced, controlled, directed and threatened with punishment if the
organisation is to achieve its objectives;
• the average person avoids responsibility, prefers to be directed, lacks ambition and values
security most of all; and
• motivation occurs only at the physiological and security levels.
THEORY Y ASSUMPTIONS

• The central principle of Theory Y is the integration of individual and organisational goals.
• Its assumptions are:
• for most people work is as natural as play or rest;
• people will exercise self-direction and self-control in the service of objectives to which they are
committed;
• given the right conditions, the average worker can learn to accept and to seek responsibility;
• the capacity for creativity in solving organisational problems is distributed widely in the
population;
• the intellectual potential of the average person is only partially utilised; and
• motivation occurs at the affiliation, esteem and self-actualisation levels as well as at the
physiological and security levels.
• The central principle of Theory X is direction and control through a centralised
system of organisation and the exercise of authority.
• McGregor questioned whether the Theory X approach to human nature is correct and the
relevance of management practices which are based upon it.
• Assumptions based on a Theory X approach, and the traditional use of rewards and
sanctions exercised by the nature of the manager’s position and authority, are likely to
result in an exploitative or authoritarian style of management.
• McGregor implies that a Theory Y approach is the best way to elicit co-operation from
members of an organisation.
• It is the task of management to create the conditions in which individuals may satisfy
their motivational needs and in which they achieve their own goals through meeting the
goals of the organisation.
• McGregor develops an analysis of the implications of accepting Theory Y in regard to
performance appraisal, administration of salaries and promotions, participation, staff–line
relationships, leadership, management development and the managerial team.
• To understand more fully, think in terms of Maslow’s hierarchy.
• Theory Y assumes higher-order needs dominate individuals.
• McGregor himself believed Theory Y assumptions were more valid than Theory X.
• Therefore, he proposed such ideas as participative decision making, responsible and
challenging jobs, and good group relations to maximize an employee’s job
motivation
• In practice it is often difficult to achieve successfully.
• It can be frustrating and time-consuming, and mistakes will occur.
LIMITATIONS

• Unfortunately, no evidence confirms that either set of assumptions is valid

or that acting on Theory Y assumptions will lead to more motivated
workers.
• OB theories need empirical support before we can accept them. Theory
X and Theory Y lack such support as much as the hierarchy of needs.
• After studying managers’ dealings with employees, McGregor
concluded that their views of the nature of human beings are based on
certain assumptions that mold their behavior.
• The style of management adopted, and the behaviour displayed towards
subordinate staff, is likely to be conditioned by Theory X and Theory
Y predispositions about people, human nature and work.
Demands of the situation
• The two views of Theory X and Theory Y tend to represent extremes of the natural inclination of managers
towards a particular style of behaviour.
• In practice, however, the actual style of management behaviour adopted will be influenced by the demands of
the situation.
• Where the job offers a high degree of intrinsic satisfaction or involves a variety of tasks, an element of
problem-solving and the exercise of initiative, or where output is difficult to measure in quantitative terms, an
informal, participative approach would seem to be more effective.
• It is more likely to lead to a higher level of staff morale.
• In many cases this would apply to work of a scientific, technical or professional nature.
• Where commitment to the goals of the organisation is almost a prerequisite of membership, such as in
certain voluntary or charity organisations, for example, then a Theory Y approach would clearly seem to be
most appropriate.
USE OF A THEORY X APPROACH

• However, even if a manager has a basic belief in Theory Y assumptions, there may be occasions
when it is necessary, or more appropriate, to adopt a Theory X approach.
• When the nature of the job itself offers little intrinsic reward or limited opportunities to
satisfy higher-level needs, a more dictatorial style of management might work best.
• Some jobs are designed narrowly, with highly predictable tasks and output measured
precisely.
• This is the case, for example, with many complex production processes in manufacturing
firms.
• With these types of jobs a Theory X approach may be needed if an adequate level of performance
is to be maintained.
• A Theory X approach may also be indicated in emergency situations, or where shortage of
time or other overriding factors demand the use of authority in directing actions to the tasks
in hand.
• For example, in the hustle, heat and noise of a busy hotel kitchen preparing fresh meals for a
large banquet, with many tasks to be co-ordinated over very short time scales, it seems to be
recognised that a Theory X style of management is most appropriate.
• there are many staff who, whatever the nature of their job, do not wish to accept
responsibility at work.
• They seem to prefer, and respond better to, a more directed and controlled style of
management.
• There are times, therefore, when the manager may be justified in adopting Theory X
assumptions about staff.
THANK YOU

KIRAN JAGANNIVASAN
BATCH 11