MOTIVATION
T
H
E
T
H
E
O
R
Y
O
F
X,
Y,
and
Z

Douglas McGregor
Dr. William Ouchi
“Theory X and Y”
“Theory Z”

Theory X subscribes to the position that
employees dislike and try to avoid work, so
management needs to control, motivate and
closely supervise the workforce. Furthermore,
most people prefer to be treated this way, so
they can avoid responsibility.
THEORY X

In an organisation where theory X is
followed, the management too follows an
authoritarian style. There is little delegation
of authority from the management.
On the other hand, companies who
follow theory Y have a more decentralized
approach, which means that the authority is
distributed among employees. This keeps
them motivated.

Theory Y maintains the outlook that under
conducive conditions employees are self-
motivated, enjoy work and will seek
opportunities to excel. It also emphasizes the
average person’s desire to be self-directing and
to seek responsibility, and his capacity to be
creative in solving business problems.
THEORY Y

Theory X works on the idea
of punishing people to keep
the work going, while under
theory Y, promotions,
rewards, and recognition
play an important part. This
keeps employees motivated
to work hard towards
achieving goals of the
organisation.
THEORY
X
AND
Y

Theory Z derives from theory Y, promoting
employee loyalty, concern and security, both in
and out of work.
Theory Z assumes that employees have
strong loyalty and interest in their teams and
organization. Therefore, a combination of job
security, holistic concern for employees,
collective decision-making and individual
responsibility motivates employees to be
productive and realize their true potential
THEORY Z

Here are the different features of Theory Z that
highlight those assumptions:
1. MUTUAL TRUST
Trust, integrity and openness are
instrumental in driving efficiency in an
organization. Increased trust reduces friction and
conflict among employees, leading to better
cooperation, teamwork and collaboration. The
theory also suggests that there is no need for a
formal structure as perfect teamwork and
cooperation can drive changes effectively.
DISTINGUISHING FEATURES OF
THEORY Z OF MOTIVATION

2. EMPLOYEE INVOLVEMENT
To improve commitment toward goals and
performance levels, it’s essential to involve
employees. It means that employee participation in
the decision-making process, especially in matters
affecting them, generates a greater sense of
responsibility and interest.
3. STRONG BOND
To increase loyalty and commitment toward the
organization, there must be a strong bond between
the organization and employees. In other words, the
organization must make active efforts toward career
advancement. For example, promotions and long-term
employment measures ensure a conducive work
environment where people feel encouraged to do
better.

 An Organization Can’t Exist Without A Structure.
While Mutual Trust, Cooperation And Perfect
Teamwork Sound Good In Theory; It’s Difficult To
Rely Solely On Interpersonal Relationships For An
Organization’s Efficiency. Without Structure, There
Will Be Chaos And A Lack Of Accountability And
Responsibility.
 Participation Of Employees In Decision-Making Isn’t
Easy To Implement. Managers May Not Enjoy Such
High Levels Of Involvement. Not Every Employee Will
Be Comfortable Voicing Their Opinions And Ideas. It’s
Highly Likely That The Involvement Of All Employees
Will Slow Down The Decision-Making Process.
LIMITATIONS OF THE THEORY Z
OF MOTIVATION

 Long-Term Career Planning And Employment
Measures May Not Be Always Feasible. While It
May Provide Job Security, It May Fail To Improve
Loyalty Among Employees. Especially In Today’s
Job Market, Employees Are Quick To Leave
Organizations For Better Opportunities. Provision
For Lifetime Employment May Be Ineffective.
Moreover, Organizations Will Be Forced To Retain
Poorly Performing Employees Permanently

Theory X, Y & Z of employee motivation have
been used in human resource management,
organizational behaviour analysis, and organizational
development. Though these theories are very basic in
nature, they provide a platform for future generations
of management theorists and practitioners to
understand the changing dynamics of human
behaviour.
CONCLUSION

A
L
D
E
R
F
E
R
E
R
G
T
H
E
O
R
Y
MOTIVATION

Alderfer’s ERG theory of motivation builds
on Maslow’s Hierarchy of Needs and
states that humans have three core types
of need: Existence, Relatedness and
Growth. These needs may be of different
levels of priority for different individuals,
and their relative importance for an
individual may vary over time.

Alderfer’s model says that all humans are
motivated by these three needs. The most concrete
and motivating of Alderfer’s three needs is
existence, which really relates to physical and
psychological survival. The next level is the need
for relatedness, a sense of community and a good
relationship with yourself. The least concrete, but
still important, of Alderfer’s needs in the ERG
model is growth, which really relates to self-
development, fulfillment and the sense of
achieving your potential.
ERG THEORY

Alderfer’s ERG Theory of Motivation states
that individuals can be motivated by multiple
levels of need at the same time, and that the level
which is most important to them can change over
time. In other words, an individual’s priorities and
motivations may be fluid and can move between
the existence, relatedness and growth levels of
need over time. They can move upwards, and they
can move downwards.
HOW THE MODEL WORKS

In Maslow’s Hierarchy of Needs, individuals
need to have satisfied one level of needs before
moving on to the next one hoewever, Alderfer
disagreed. In his model, individuals do not need to
have satisfied their existence needs before being
motivated by their relatedness need.
In fact, Alderfer went further and said that
different individuals potentially prioritize the
needs in different orders based on their life views.
COMPARING ALDERFER AND
MASLOW

Alderfer also noted that how individuals perceive
their progression in relation to each of the levels
of need is important. If an individual feels they
are making great progress at relatedness, they
may be increasingly motivated by growth even
though their relatedness need has not been fully
satisfied.

L
E
A
D
E
R
S
H
I
P
S
T
Y
L
E
LEADERSHIP

A leadership style is a way in which a leader
accomplishes their team’s objective by
motivating employees to work towards the
common goal and focusing on their well-being.
Understanding leadership style is imperative for
a team to work together and also keep growing
while embracing changes.
WHAT IS A LEADERSHIP STYLE?

DIFFERENT TYPES OF LEADERSHIP
• Basic Leadership Styles:
- Democratic Leadership
- Autocratic Leadership
- Laissez-faire Leadership
- Bureaucratic Leadership
• Other Leadership Styles:
- Transformational Leadership
- Transactional Leadership
- Creative Leadership
- Corrective Leadership
- Change Leadership
- Intelligence Leadership
- Multicultural Leadership
- Pedagogical Leadership
- Servant Leadership
- Bridging leadership
- Purposeful Leadership

Basic Leadership Styles

A democratic leader makes decisions based
on their team’s opinion and feedback. In simpler
words, they get everyone involved in the decision-
making process.
Here are some scenarios in which you can
adopt a democratic leadership style:
New project that requires constant brainstorming
Solve complex business problems
Tight-knit or small organisations like start-ups,
etc.
DEMOCRATIC LEADERSHIP

WHEN:
Not enough time to get everyone’s input
 Easier and more cost-effective for the manager
to make the decision
 Can’t afford mistakes
 Manager feels threatened by this type of
leadership
 Staff safety is a critical concern
SHOULD NOT BE USED

This is precisely the opposite of democratic
leadership. The opinions of team members are
not considered while making any business
decision. Instead, leaders expect others to
adhere to their decisions, which is not
sustainable in the long run.
AUTOCRATIC LEADERSHIP

Sometimes the most effective style to use WHEN:
 ‰
New, untrained staff do not know which tasks to
perform or which procedures to follow
 ‰
Effective supervision provided only through
detailed orders and instructions
 ‰
Staff do not respond to any other leadership style
‰
Limited time in which to make a decision
 ‰
A manager’s power challenged by staff
 ‰
Work needs to be coordinated with another
department or organization
NOT ALL BAD

WHEN:
‰
Staff become tense, fearful, or
resentful
‰
Staff expect their opinions heard
‰
Staff depend on their manager
to make all their decisions
‰
Low staff morale, high turnover
and absenteeism and work
stoppage
SHOULD NOT BE USED

Laissez-faire means “let them do”.
This leadership style is the least intrusive
and ensures that the decision-making authority
lies with the team members.
This leadership style empowers team
members and holds them accountable for their
work. This motivates many team members to
put their best foot forward, improving the
organisation’s efficiency and productivity.
LAISSEZ-FAIRE LEADERSHIP

WHEN:
 Staff feel insecure at the unavailability of a
manager
 The manager cannot provide regular feedback to
staff on how well they are doing
 Managers unable to thank staff for their good
work
 The manager doesn’t understand his or her
responsibilities and hoping the staff cover for him or
her
SHOULD NOT BE USED

This kind of leadership style sticks to the
rules. For example, they might listen to their team
members’ opinions while deciding.
If not covered by the book (rules), referred to
the next level above.
BUREAUCRATIC LEADERSHIP

WHEN:
 ‰
Work habits form that are hard to break,
especially if they are no longer useful
 ‰
Staff lose their interest in their jobs and in
their co-workers
 ‰
Staff do only what is expected of them and
no more
INEFFECTIVE

Other Leadership Styles

Creates and sustains a context that
maximizes human and organizational
capabilities;
 Facilitate multiple levels of
transformation; and
 Align them with core values and a
unified purpose
TRANSFORMATIONAL
LEADERSHIP

Make change happen in:
 Self,
 Others,
 Groups, and
 Organizations
Charisma a special leadership style
commonly associated with transformational
leadership; extremely powerful, extremely hard to
teach.
THE TRANSFORMATIONAL
LEADERSHIP

 Emphasizes getting things done within the
umbrella of the status quo (the current situation).
 In opposition to transformational leadership.
 “By the book" approach - the person works
within the rules.
 Commonly seen in large, bureaucratic
organizations.
TRANSACTIONAL LEADERSHIP

Ability to uniquely inspire people
To generate shared innovative responses and
solutions
To complex and readily changing situations
CREATIVE LEADERSHIP

Empowers staff to facilitate collaborative and
synergism (a type of "when is one plus one is
greater than two" effect).
Working with and through other people instead of
bowing to authoritarianism
CORRECTIVE LEADERSHIP

Endorses alteration.
 Beyond thinking about individuals and individual
organization, single problems and single
solutions.
Rethinking systems to introduce change on parts
of the whole and their relationship to one
another.
CHANGE LEADERSHIP

To navigate the future by embracing ambiguity
and reframing problems as opportunities.
A proactive stance in taking their organizations
into uncharted territory.
INTELLIGENCE LEADERSHIP

Fosters team and individual effectiveness
Drives for innovation by leveraging multicultural
differences
Teams work harder in an atmosphere of
understanding and mutual respect
MULTICULTURAL LEADERSHIP

Paradigm shift from leader/teacher centered
"orientation" to an interactive, connective
organizational system using a democratic
learning and communicative style
An alternative to instructional leadership by
enabling the learning and intellectual growth of
those led
PEDAGOGICAL LEADERSHIP

A practical philosophy focusing on people who
choose to serve first and then lead as a way of
expanding service
Servant leaders are "servants first" with the
object of making sure that other people's highest
priority needs are being served
 Leaders put the needs of their followers first;
these leaders rare in business
SERVANT LEADERSHIP

Fostering synergy and reinforcing behavior and
motivation through the use of communication to
create climate of trust and confidence.
Projection of confidence on the face of a difficult
challenge.
BRIDGING LEADERSHIP

Leader and the community share a common
purpose to develop or provide the drive,
authority and commitment to undertake
projects
PURPOSEFUL LEADERSHIP

Varying Leadership Style
Three factors that influence which leadership style
to use:
1. The manager’s personal background:
What personality, knowledge, values, ethics, and
experiences does the manager have. What does he
or she think will work?
CONCLUSION

2. Staff being supervised:
Staff individuals with different personalities
and backgrounds; The leadership style used
will vary depending upon the individual staff
and what he or she will respond best to.
3. The organization:
The traditions, values, philosophy, and
concerns of the organization influence how a
manager acts.

 Should leaders be more task or relationship
(people) oriented.
 Leaders have a dominant style, one they use in a
wide variety of situations.
 No one best style - leaders must adjust their
leadership style to the situation as well as to the
people being led.
 Many different aspects to being a great leader -
a role requiring one to play many different
leadership styles to be successful.
DETERMINING THE BEST
LEADERSHIP STYLE

THE PRESENTATION
ENDS HERE.
THANK YOU!