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Theory X and Theory Y

Theory purposed by Douglas McGregor
Theory X
This assumes that employees are naturally unmotivated and dislike working, and this encourages an authoritarian style of management. According to this view, management must actively intervene to get things done. This style of management assumes that workers:
·         Dislike working.
·         Avoid responsibility and need to be directed.
·         Have to be controlled, forced, and threatened to deliver what's needed.
·         Need to be supervised at every step, with controls put in place.
·         Need to be enticed to produce results; otherwise they have no ambition or incentive to work.
X-Type organizations tend to be top heavy, with managers and supervisors required at every step to control workers. There is little delegation of authority and control remains firmly centralized.
McGregor recognized that X-Type workers are in fact usually the minority, and yet in mass organizations, such as large scale production environment, X Theory management may be required and can be unavoidable.
Theory Y
This expounds a participative style of management that is de-centralized. It assumes that employees are happy to work, are self-motivated and creative, and enjoy working with greater responsibility. It assumes that workers:
·         Take responsibility and are motivated to fulfill the goals they are given.
·         Seek and accept responsibility and do not need much direction.
·         Consider work as a natural part of life and solve work problems imaginatively.
This more participative management style tends to be more widely applicable. In Y-Type organizations, people at lower levels of the organization are involved in decision making and have more responsibility.


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