Theory X and Theory Y by Douglas MacGregor

Background

• Developed in the 1950s and 1960s by Douglas MacGregor
• Concept that managers categorize workers into two groups: Theory X and Theory Y

Theory X

• Characteristics of Theory X workers:
  • Lazy
  • Motivated primarily by money
  • Do not enjoy work
  • Require close supervision to perform
  • Prefer not to make decisions
  • Not interested in the needs of the business
• Management Style for Theory X:
  • Autocratic or authoritarian
  • Tells-sells approach (related to the Tannenbaum-Schmidt continuum)
• Resistance to Change:
  • Likely to resist due to parochial self-interest (based on Cotter's resistance to change theory)

Theory Y

• Characteristics of Theory Y workers:
  • Motivated and engaged
  • Enjoy contributing to the organization
  • Do not need close supervision
  • Prefer to make decisions
• Management Style for Theory Y:
  • Democratic or laissez-faire
  • More subordinate-oriented approach
• Performance Issues:
  • Poor performance likely due to boredom from monotonous work
  • Address issues with non-financial motivation methods:
    • Job enlargement
    • Job rotation
    • Job design

Conclusion

• Majority of workers identified as Theory X by MacGregor
• Minority identified as Theory Y
• Different management styles and motivation techniques required for each type

See you for the next session!