Theory X and Theory Y: Douglas McGregor

1. Theory X and Theory Y:
Douglas McGregor
By,
Karthik Bharadwaj

2. Theory X :
Theory X - Classical Theory
Three Assumptions
 The average human being has an inherent dislike of work and will avoid
it.
 Most people must be coerced, controlled, directed, and threatened with
punishment
 The average human being prefers to be directed, wishes to avoid
responsibility, has relatively little ambition, wants security.
 Neither explains nor describes human nature

3. Theory Y Prototype: The Scanlon Plan
• Theory Y - Human Relations Theory
• Participative Management
• Two Central Features
▫ Cost-reduction sharing for organizational members - sharing the economic gains
from improvements in organizational performance
▫ Effective participation - a formal means of providing opportunities to every member
of the organization to contribute ideas for improving organizational effectiveness.
• Must be implemented appropriately
• Wastes time and undermines managerial power?
• Magic formula for every organizational problem?
• CONCERN for RELATIONSHIPS in the organization.
• As the need to increase commitment grows, so does the need to develop strong,
communication-based relationships among organizational members, particularly between
supervisor and subordinate.

4. Concern for PEOPLE
Degree of personal commitment to one’s job
Trust-based accountability (vs. obedience-based accountability)
Self-esteem for the individual
Interpersonal relationships with co-workers
Concern for PRODUCTION
Use of people and technology to accomplish organizational tasks
Concern for is not about quantity or quality
Assessment instrument does not represent personality traits of the
manager -- instead, indicate a specific orientation to production and
people