Behavioral Management Theory
often called the human relations movement because it addresses the human dimension of work.
Behavioral theorists believed that a better understanding of human behavior at work, such as motivation, conflict,
expectations, and group dynamics, improved productivity.
The theorists who contributed to this school viewed employees as individuals, resources, and assets to be
developed and worked with — not as machines, as in the past. Several individuals and experiments contributed
to this theory.
Behavioral Management Theory, also known as the Behavioral Perspective of Management, is a school
of thought in the field of management that focuses on understanding and influencing human
behavior in organizations. This theory emerged as a reaction to the earlier classical management
theories, such as Scientific Management and Administrative Management, which primarily
emphasized the rational and structural aspects of organizations.
Key concepts and ideas associated with Behavioral Management Theory include:
1. Human Behavior: This theory recognizes that employees are not merely cogs in a machine but
are individuals with their own motivations, needs, and desires. It emphasizes the importance of
understanding human behavior in the workplace.
2. Motivation: Behavioral management theorists, like Abraham Maslow and Douglas McGregor,
explored the psychological factors that influence employee motivation. Maslow's Hierarchy of
Needs and McGregor's Theory X and Theory Y are examples of frameworks used to understand
and improve employee motivation.
3. Social and Group Dynamics: Behavioral management theory acknowledges the significance of
social interactions and group dynamics within an organization. Researchers like Kurt Lewin
studied group behavior and how it affects organizational outcomes.
4. Leadership Styles: The theory also delves into leadership and management styles that can
positively or negatively impact employee behavior. For example, the research of Douglas
McGregor distinguishes between authoritarian (Theory X) and participative (Theory Y)
leadership styles.
5. Communication: Effective communication is considered a critical component of managing
behavior within an organization. This theory emphasizes the importance of clear and open
communication channels to foster cooperation and understanding among employees.
6. Employee Participation: Behavioral management theory encourages greater employee
involvement in decision-making processes. This approach is believed to enhance employee
satisfaction and commitment.
7. Organizational Culture: It recognizes that the culture and values of an organization can
significantly influence behavior. A positive and supportive organizational culture is seen as
essential for promoting desirable behaviors.
8. Feedback and Reinforcement: Behavioral theorists often advocate the use of feedback and
reinforcement mechanisms to shape and modify employee behavior. This can involve rewards
for desired behaviors and consequences for undesirable ones.
Prominent contributors to Behavioral Management Theory include psychologists like Abraham
Maslow, Douglas McGregor, Kurt Lewin, and B.F. Skinner. Their work laid the foundation for a more
human-centric approach to management that seeks to improve organizational effectiveness by
understanding and influencing the behavior of individuals and groups in the workplace. This
perspective has had a profound impact on modern management practices and continues to inform
leadership and organizational behavior theories today.
Comparing Theory Z to Douglas McGregor's Theory X and Theory Y reveals significant differences in
their assumptions about employee motivation and management styles:
Connection of Hawthorne and Hierarchy of need theories to Theories X, Y, Z (Impact of these theories to the X Y Z )
Hawthorne Studies/Experiments
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First Study (Elton Mayo)
a group of engineers seeking to determine the relationship of lighting levels to worker
productivity
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Second Study (Mayo and F. J. Roethlisberger)
a group of five women in a bank wiring room
Hierarchy of Need Theories (Abraham Maslow)
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Human needs are never completely satisfied.
Human behavior is purposeful and is motivated by the need for satisfaction.
Needs can be classified according to a hierarchical structure of importance, from thelowest to
highest.
Five Specific Areas
1. Physiological needs.
Maslow grouped all physical needs necessary for maintaining basichuman well-being, such as food
and drink, into this category. After the need is satisfied,however, it is no longer is a motivator.
2. Safety needs.
These needs include the need for basic security, stability, protection, andfreedom from fear. A
normal state exists for an individual to have all these needsgenerally satisfied. Otherwise, they become
primary motivators.
3. Belonging and love needs.
After the physical and safety needs are satisfied and are nolonger motivators, the need for
belonging and love emerges as a primary motivator. Theindividual strives to establish meaningful
relationships with significant others.
4. Esteem needs.
An individual must develop self-confidence and wants to achieve status,reputation, fame, and
glory.
5. Self-actualization needs.
Assuming that all the previous needs in the hierarchy aresatisfied, an individual feels a need to
find himself.
Who is Douglas McGregor?
Theory X manager and Theory Y manager (Douglas McGregor)
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Influenced by both the Hawthorne studies and Maslow
self‐fulfilling prophecies
-through their behavior, these managers create situations where subordinates act in ways that confirm
the manager's original expectations.
Theory X
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Work is inherently distasteful to most people, and they will attempt to avoid work whenever possible.
Most people are not ambitious, have little desire for responsibility, and prefer to be directed.
Most people have little aptitude for creativity in solving organizational problems.
Motivation occurs only at the physiological and security levels of Maslow’s hierarchy of needs.
Most people are self-centered. As a result, they must be closely controlled and often coerced to achieve
organizational objectives.
Most people resist change.
Most people are gullible and unintelligent.
Theory X (McGregor):
1. Assumptions about Employee Motivation:
 Employees inherently dislike work and will avoid it if possible.
 They need to be closely controlled, directed, and coerced to perform.
 Most workers prefer security over responsibility.
2. Management Style:
 Theory X encourages an authoritarian management style.
 Managers tend to micromanage, control, and supervise employees closely.
 Decision-making is centralized at the top of the hierarchy.
 Rewards and punishments are often used as motivators.
Theory X
Theory X is based on negative assumptions regarding the typical worker. This management style assumes that the typical
worker has little ambition, avoids responsibility, and is individual-goal oriented. In general, Theory X style managers
believe their employees are less intelligent, lazier, and work solely for a sustainable income. Management believes
employees' work is based on their own self-interest.[6] Managers who believe employees operate in this manner are more
likely to use rewards or punishments as motivation.[6] Due to these assumptions, Theory X concludes the typical
workforce operates more efficiently under a hands-on approach to management. Theory X managers believe all actions
should be traceable to the individual responsible. This allows the individual to receive either a direct reward or a
reprimand, depending on the outcome's positive or negative nature. This managerial style is more effective when used in
a workforce that is not essentially motivated to perform.
According to McGregor, there are two opposing approaches to implementing Theory X: the hard approach and the soft
approach.[7] The hard approach depends on close supervision, intimidation, and immediate punishment.[8] This approach
can potentially yield a hostile, minimally cooperative workforce and resentment towards management.[6] Managers are
always looking for mistakes from employees, because they do not trust their work.[6] Theory X is a "we versus they"
approach, meaning it is the management versus the employees.[6]
The soft approach is characterized by leniency and less strict rules in hopes for creating high workplace morale and
cooperative employees.[7] Implementing a system that is too soft could result in an entitled, low-output workforce.[7]
McGregor believes both ends of the spectrum are too extreme for efficient real-world application. Instead, McGregor feels
that an approach located in the middle would be the most effective implementation of Theory X.[7]
Because managers and supervisors are in almost complete control of the work, this produces a more systematic and
uniform product or work flow. Theory X can benefit a work place that utilizes an assembly line or manual labor. Using this
theory in these types of work conditions allows employees to specialize in particular work areas which in turn allows the
company to mass-produce a higher quantity and quality of work.
Theory Y
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Work can be as natural as play if the conditions are favorable.
People will be self-directed and creative to meet their work and organizational objectives if they are
committed to them.
People will be committed to their quality and productivity objectives if rewards are in place that address
higher needs such as self-fulfillment.
The capacity for creativity spreads throughout organizations.
Most people can handle responsibility because creativity and ingenuity are common in the population.
Under these conditions, people will seek responsibility.
* If Theory Y holds true, an organization can apply the following principles of scientific management
to improve employee motivation:
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Decentralization and delegation: If firms decentralize control and reduce the number of levels of
management, managers will have more subordinates and consequently need to delegate some
responsibility and decision making to them.
Job enlargement: Broadening the scope of an employee’s job adds variety and opportunities to satisfy
ego needs.
Participative management: Consulting employees in the decision-making process taps their creative
capacity and provides them with some control over their work environment.
Performance appraisals: Having the employee set objectives and participate in the process of selfevaluation increases engagement and dedication.
Theory Y (McGregor):
1. Assumptions about Employee Motivation:
 Employees can find satisfaction in their work and can be self-motivated.
 They are capable of creativity, problem-solving, and innovation.
 Given the right conditions, most people can exercise self-direction and self-control in
achieving organizational objectives.
2. Management Style:
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Theory Y promotes a participative and empowering management style.
Managers trust employees to perform their jobs effectively and encourage them to take
on responsibility.
Decision-making is decentralized, and employees are given opportunities to contribute
ideas.
Motivation comes from allowing employees to satisfy higher-level needs, such as selffulfillment.
Theory Y
Theory Y is based on positive assumptions regarding the typical worker. Theory Y managers assume employees are
internally motivated, enjoy their job, and work to better themselves without a direct reward in return. These managers
view their employees as one of the most valuable assets to the company, driving the internal workings of the
corporation. Employees additionally tend to take full responsibility for their work and do not need close supervision to
create a quality product.[2] It is important to note, however, that before an employee carries out their task, they must
first obtain the manager's approval. This ensures work stays efficient, productive, and in-line with company
standards.[9]
Theory Y managers gravitate towards relating to the worker on a more personal level, as opposed to a more conductive
and teaching-based relationship.[8] As a result, Theory Y followers may have a better relationship with their boss,
creating a healthier atmosphere in the workplace.[10] In comparison to Theory X, Theory Y incorporates a pseudodemocratic environment to the workforce.[4] This allows the employee to design, construct, and publish their work in
a timely manner in co-ordinance to their workload and projects.
Although Theory Y encompasses creativity and discussion, it does have limitations. While there is a more personal and
individualistic feel, this leaves room for error in terms of consistency and uniformity.[4] The workplace lacks unvarying
rules and practices, which could potentially be detrimental to the quality standards of the product and strict guidelines
of a given company.
Chris Argyris - expanded on the work of the Hawthorne experiment by challenging the basic assumptions of the
classical school concerning worker motivation and satisfaction
Who is William?
William G. Ouchi is a renowned American organizational theorist and management expert. He is best known for his
work in the field of management and is the author of the influential book "Theory Z: How American Business Can Meet
the Japanese Challenge," which introduced the concept of Theory Z.
Theory Z (William Ouchi)
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A strong company philosophy and culture: The company philosophy and culture need to be understood and
embodied by all employees, and employees need to believe in the work they’re doing.
Long-term staff development and employment: The organization and management team need to have measures
and programs in place to develop employees. Employment is usually long-term, and promotion is steady and
measured. This leads to loyalty from team members.
Consensus in decisions: Employees are encouraged and expected to take part in organizational decisions.
Generalist employees: Because employees have a greater responsibility in making decisions and understand all
aspects of the organization, they ought to be generalists. However, employees are still expected to have specialized
career responsibilities.
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Concern for the happiness and well-being of workers: The organization shows sincere concern for the health and
happiness of its employees and their families. It takes measures and creates programs to help foster this happiness
and well-being.
Informal control with formalized measures: Employees are empowered to perform tasks the way they see fit, and
management is quite hands-off. However, there should be formalized measures in place to assess work quality and
performance.
Individual responsibility: The organization recognizes the individual contributions but always within the context of
the team as a whole.
Theory Z (Ouchi):
1. Assumptions about Employee Motivation:
 Employees are motivated by a sense of belonging, job security, and long-term
employment.
 They value a work environment that fosters cooperation and teamwork.
 Employees desire opportunities for personal growth and self-fulfillment.
2. Management Style:
 Theory Z combines elements of both Theory X and Theory Y, depending on the
situation.
 It emphasizes long-term employment, job security, and consensus-based decisionmaking (similar to Theory Y).
It encourages employee involvement in decision-making, training and development, and a holistic
concern for employee well-being (similar to Japanese management
Theory Z
Main article: Theory Z
Humanistic psychologist Abraham Maslow, upon whose work McGregor drew for Theories X and Y, went on to propose
his own model of workplace motivation, Theory Z. Unlike Theories X and Y, Theory Z recognizes a transcendent
dimension to work and worker motivation. An optimal managerial style would help cultivate worker creativity, insight,
meaning and moral excellence.[11]
The potential benefits of Theory Z for organizations include:
1. Enhanced Employee Satisfaction and Loyalty:
 Theory Z's emphasis on meeting employees' higher-level needs, such as belonging, job
security, and personal growth, contributes to higher job satisfaction.
 Satisfied employees are more likely to remain loyal to the organization, reducing
turnover rates and the associated costs.
2. Improved Productivity and Performance:
 When employees are motivated, engaged, and committed due to Theory Z principles,
they tend to perform at their best.
 Increased job satisfaction often leads to higher levels of productivity, creativity, and
innovation, positively impacting overall performance.
3. Long-Term Organizational Stability:
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Theory Z promotes long-term employment, which fosters stability within the
organization.
Employees who expect job security and opportunities for growth are more likely to
invest in their careers within the organization, contributing to its long-term success.
In summary, while Theory X and Theory Y represent opposing assumptions about employee
motivation and management styles, Theory Z takes a more balanced approach by integrating
elements from both Japanese and American management philosophies. It recognizes the importance
of understanding and addressing employees' diverse needs to create a motivating and effective work
environment.
Aspect
Theory X
Theory Y
Theory Z
- Intrinsic motivation is
strong. Employees can
find satisfaction in their
work.
- Intrinsic motivation is
complemented by a sense of
belonging, job security, and
opportunities for personal
growth.
Management
Style
- Participative and
- Authoritarian and
empowering. Managers
controlling. Managers
trust and involve
closely supervise and control employees in decisionemployees.
making.
- A blend of participative and
authoritarian, depending on
the situation. Encourages
consensus and employee
involvement.
Employee
Participation
- Encouraged input and
- Limited input and
- Encouraged input and consensus-based decisionautonomy for employees in autonomy for employees making. Employees have a say
decision-making.
in decision-making.
in organizational decisions.
- Intrinsic motivation is
weak. Employees are
Assumptions
primarily motivated by
about Employee extrinsic factors like rewards
Motivation
and punishments.
Aspect
Theory X
Theory Y
Theory Z
- Focuses on basic needs
Approach to
(physiological and safety).
Employee Needs Ignores higher-level needs.
- Recognizes higher-level
needs (belonging,
- Addresses a broad range of
esteem, selfneeds, including belonging,
actualization) as
job security, and personal
motivators.
growth.
View of
Employee
Capability
- Believes employees have
limited creativity and
problem-solving abilities.
- Believes employees have
- Believes employees
potential and can contribute
have the potential for
significantly with the right
creativity and innovation. environment.
Employee
Loyalty
- Expects low employee
loyalty; loyalty must be
enforced through control
and coercion.
- Expects higher
employee loyalty due to
trust and involvement.
- Management's role is to
control and direct
employees.
- Management's role is to
- Management's role is
create a conducive
to empower and support environment that satisfies
employees.
employees' diverse needs.
Role of
Management
- Expects strong employee
loyalty through a sense of
belonging and job security.