Theories of Motivation
Joe Kelly (How Managers Manage) presents a simple model that illustrates the process of
motivation.
Needs - drives - behaviour - goals - reduction or release of tension
Behaviour is both directed to, and results from, unsatisfied needs. The word unsatisfied is
most important. As Maslow says,
"If we are interested in what actually motivates us and not what has or will, or might
motivate us, then a satisfied need is not a motivator."
3) Abraham Maslow’s “Need Hierarchy Theory” :
One of the most widely mentioned theories of motivation is the hierarchy of needs theory put forth
by psychologist Abraham Maslow. Maslow saw human needs in the form of a hierarchy, ascending
from the lowest to the highest, and he concluded that when one set of needs is satisfied, this kind
of need ceases to be a motivator.
As per his theory this needs are :
(i) Physiological needs :
These are important needs for sustaining the human life. Food, water, warmth, shelter, sleep,
medicine and education are the basic physiological needs which fall in the primary list of need
satisfaction. Maslow was of an opinion that until these needs were satisfied to a degree to maintain
life, no other motivating factors can work.
(ii) Security or Safety needs :
These are the needs to be free of physical danger and of the fear of losing a job, property, food or
shelter. It also includes protection against any emotional harm.
(iii) Social needs :
Since people are social beings, they need to belong and be accepted by others. People try to satisfy
their need for affection, acceptance and friendship.
(iv) Esteem needs :
According to Maslow, once people begin to satisfy their need to belong, they tend to want to be held
in esteem both by themselves and by others. This kind of need produces such satisfaction as power,
prestige status and self-confidence. It includes both internal esteem factors like self-respect,
autonomy and achievements and external esteem factors such as states, recognition and attention.
(v) Need for self-actualization :
Maslow regards this as the highest need in his hierarchy. It is the drive to become what one is
capable of becoming, it includes growth, achieving one’s potential and self-fulfillment. It is to
maximize one’s potential and to accomplish something.
4) “Theory X and Theory Y” of Douglas McGregor :
McGregor, in his book “The Human side of Enterprise” states that people inside the organization can
be managed in two ways. The first is basically negative, which falls under the category X and the
other is basically positive, which falls under the category Y. After viewing the way in which the
manager dealt with employees, McGregor concluded that a manager’s view of the nature of human
beings is based on a certain grouping of assumptions and that he or she tends to mold his or her
behavior towards subordinates according to these assumptions.
Under the assumptions of theory X :




Employees inherently do not like work and whenever possible, will attempt to avoid it.
Because employees dislike work, they have to be forced, coerced or threatened with
punishment to achieve goals.
Employees avoid responsibilities and do not work fill formal directions are issued.
Most workers place a greater importance on security over all other factors and display little
ambition.
In contrast under the assumptions of theory Y :




Physical and mental effort at work is as natural as rest or play.
People do exercise self-control and self-direction and if they are committed to those goals.
Average human beings are willing to take responsibility and exercise imagination, ingenuity
and creativity in solving the problems of the organization.
That the way the things are organized, the average human being’s brainpower is only partly
used.
On analysis of the assumptions it can be detected that theory X assumes that lower-order needs
dominate individuals and theory Y assumes that higher-order needs dominate individuals. An
organization that is run on Theory X lines tends to be authoritarian in nature, the word
“authoritarian” suggests such ideas as the “power to enforce obedience” and the “right to
command.” In contrast Theory Y organizations can be described as “participative”, where the aims
of the organization and of the individuals in it are integrated; individuals can achieve their own
goals best by directing their efforts towards the success of the organization.
However, this theory has been criticized widely for generalization of work and human behavior.
5) Contribution of Rensis Likert :
Likert developed a refined classification, breaking down organizations into four management
systems.
1st
System
2nd
System
3rd
System
4th System – Participative
–
–
Primitive
Benevolent
–
authoritarian
authoritarian
Consultative
As per the opinion of Likert, the 4th system is the best, not only for profit organizations, but also for
non-profit firms.
6) Frederick Herzberg’s motivation-hygiene theory :
Frederick has tried to modify Maslow’s need Hierarchy theory. His theory is also known as twofactor theory or Hygiene theory. He stated that there are certain satisfiers and dissatisfiers for
employees at work. In- trinsic factors are related to job satisfaction, while extrinsic factors are
associated with dissatisfaction. He devised his theory on the question : “What do people want from
their jobs ?” He asked people to describe in detail, such situations when they felt exceptionally good
or exceptionally bad. From the responses that he received, he concluded that opposite of
satisfaction is not dissatisfaction. Removing dissatisfying characteristics from a job does not
necessarily make the job satisfying. He states that presence of certain factors in the organization is
natural and the presence of the same does not lead to motivation. However, their nonpresence
leads to demotivation. In similar manner there are certain factors, the absence of which causes no
dissatisfaction, but their presence has motivational impact.
Examples of Hygiene factors are :
Security, status, relationship with subordinates, personal life, salary, work conditions, relationship
with supervisor and company policy and administration.
Examples of Motivational factors are :
Growth prospectus job advancement, responsibility, challenges, recognition and achievements.
7) Contributions of Elton Mayo :
The work of Elton Mayo is famously known as “Hawthorne Experiments.” He conducted behavioral
experiments at the Hawthorne Works of the American Western Electric Company in Chicago. He
made some illumination experiments, introduced breaks in between the work performance and also
introduced refreshments during the pause’s. On the basis of this he drew the conclusions that
motivation was a very complex subject. It was not only about pay, work condition and morale but
also included psychological and social factors. Although this research has been criticized from many
angles, the central conclusions drawn were :

People are motivated by more than pay and conditions.

The need for recognition and a sense of belonging are very important.

Attitudes towards work are strongly influenced by the group.
As each of these needs are substantially satisfied, the next need becomes dominant. From the
standpoint of motivation, the theory would say that although no need is ever fully gratified, a
substantially satisfied need no longer motivates. So if you want to motivate someone, you need to
understand what level of the hierarchy that person is on and focus on satisfying those needs or
needs above that level.
Maslow’s need theory has received wide recognition, particularly among practicing managers. This
can be attributed to the theory’s intuitive logic and ease of understanding. However, research does
not validate these theory. Maslow provided no empirical evidence and other several studies that
sought to validate the theory found no support for it.
THREE NEEDS THEORY
1.
Need for Achievement
Need for Achievement
Personal responsibility
Feedback
Moderate risk
Need For Power
Influence
Competitive
Need for Affiliation
Acceptance and Friendship
Cooperative
Theories of Motivation
Overview
At a simple level, it seems obvious that people do things, such as go to work, in order to
get stuff they want and to avoid stuff they don't want.
Why exactly they want what they do and don't want what they don't is still something a
mystery. It's a black box and it hasn't been fully penetrated.
Overall, the basic perspective on motivation looks something like this:
In other words, you have certain needs or wants (these terms will be used
interchangeably), and this causes you to do certain things (behavior), which satisfy those
needs (satisfaction), and this can then change which needs/wants are primary (either
intensifying certain ones, or allowing you to move on to other ones).
A variation on this model, particularly appropriate from an experimenter's or manager's
point of view, would be to add a box labeled "reward" between "behavior" and
"satisfaction". So that subjects (or employees), who have certain needs do certain things
(behavior), which then get them rewards set up by the experimenter or manager (such as
raises or bonuses), which satisfy the needs, and so on.
Classifying Needs
People seem to have different wants. This is fortunate, because in markets this creates the
very desirable situation where, because you value stuff that I have but you don't, and I
value stuff that you have that I don't, we can trade in such a way that we are both happier
as a result.
But it also means we need to try to get a handle on the whole variety of needs and who
has them in order to begin to understand how to design organizations that maximize
productivity.
Part of what a theory of motivation tries to do is explain and predict who has which
wants. This turns out to be exceedingly difficult.
Many theories posit a hierarchy of needs, in which the needs at the bottom are the most
urgent and need to be satisfied before attention can be paid to the others.
Maslow
Maslow's hierarchy of need categories is the most famous example:
self-actualization
esteem
belongingness
safety
physiological
Specific examples of these types are given below, in both the work and home context.
(Some of the instances, like "education" are actually satisfiers of the need.)
Need
Home
Job
self-
education, religion, hobbies,
training, advancement, growth,
actualization
personal growth
creativity
esteem
approval of family, friends,
community
recognition, high status,
responsibilities
belongingness
family, friends, clubs
teams, depts, coworkers, clients,
supervisors, subordinates
safety
freedom from war, poison,
violence
work safety, job security, health
insurance
physiological
food water sex
Heat, air, base salary
According to Maslow, lower needs take priority. They must be fulfilled before the others
are activated. There is some basic common sense here -- it's pointless to worry about
whether a given color looks good on you when you are dying of starvation, or being
threatened with your life. There are some basic things that take precedence over all else.
Or at least logically should, if people were rational. But is that a safe assumption?
According to the theory, if you are hungry and have inadequate shelter, you won't go to
church. Can't do the higher things until you have the lower things. But the poor tend to be
more religious than the rich. Both within a given culture, and across nations. So the
theory makes the wrong prediction here.
Or take education: how often do you hear "I can't go to class today, I haven't had sex in
three days!"? Do all physiological needs including sex have to be satisfied before
"higher" needs? (Besides, wouldn't the authors of the Kama Sutra argue that sex was a
kind of self-expression more like art than a physiological need? that would put it in the
self-actualization box). Again, the theory doesn't seem to predict correctly.
Cultural critique: Does Maslow's classification really reflect the order in which needs are
satisfied, or is it more about classifying needs from a kind of "tastefulness" perspective,
with lofty goals like personal growth and creativity at the top, and "base" instincts like
sex and hunger at the bottom? And is self-actualization actually a fundamental need? Or
just something that can be done if you have the leisure time?
Alderfer's ERG theory
Alderfer classifies needs into three categories, also ordered hierarchically:



growth needs (development of competence and realization of potential)
relatedness needs (satisfactory relations with others)
existence needs (physical well-being)
This is very similar to Maslow -- can be seen as just collapsing into three tiers. But
maybe a bit more rational. For example, in Alderfer's model, sex does not need to be in
the bottom category as it is in Maslow's model, since it is not crucial to (the individual's)
existence. (Remember, this about individual motivation, not species' survival.) So by
moving sex, this theory does not predict that people have to have sex before they can
think about going to school, like Maslow's theory does.
Alderfer believed that as you start satisfying higher needs, they become more intense
(e.g., the power you get the more you want power), like an addiction.
Do any of these theories have anything useful to say for managing businesses? Well, if
true, they suggest that


Not everyone is motivated by the same things. It depends where you are in the
hierarchy (think of it as a kind of personal development scale)
The needs hierarchy probably mirrors the organizational hierarchy to a certain
extent: top managers are more likely to motivated by self-actualization/growth
needs than existence needs. (but try telling Bill Clinton that top executives are not
motivated by sex and cheeseburgers...)
Acquired Needs Theory (mcclellan)
Some needs are acquired as a result of life experiences



need for achievement, accomplish something difficult. as kids encouraged to do
things for themselves.
need for affiliation, form close personal relationships. as kids rewarded for
making friends.
need for power, control others. as kids, able to get what they want through
controlling others.
Again similar to maslow and alderfer.
These needs can be measured using the TAT (thematic apperception test), which is a
projection-style test based on interpreting stories that people tell about a set of pictures.
Cognitive Evaluation Theory
This theory suggests that there are actually two motivation systems: intrinsic and
extrinsic that correspond to two kinds of motivators:


intrinsic motivators: Achievement, responsibility and competence. motivators
that come from the actual performance of the task or job -- the intrinsic interest of
the work.
extrinsic: pay, promotion, feedback, working conditions -- things that come from
a person's environment, controlled by others.
One or the other of these may be a more powerful motivator for a given individual.
Intrinsically motivated individuals perform for their own achievement and satisfaction. If
they come to believe that they are doing some job because of the pay or the working
conditions or some other extrinsic reason, they begin to lose motivation.
The belief is that the presence of powerful extrinsic motivators can actually reduce a
person's intrinsic motivation, particularly if the extrinsic motivators are perceived by the
person to be controlled by people. In other words, a boss who is always dangling this
reward or that stick will turn off the intrinsically motivated people.
Note that the intrinsic motivators tend to be higher on the Maslow hierarchy.
Two Factor theory (Herzberg)
According to Herzberg, two kinds of factors affect motivation, and they do it in different
ways:


hygiene factors. These are factors whose absence motivates, but whose presence
has no perceived effect. They are things that when you take them away, people
become dissatisfied and act to get them back. A very good example is heroin to a
heroin addict. Long term addicts do not shoot up to get high; they shoot up to stop
being sick -- to get normal. Other examples include decent working conditions,
security, pay, benefits (like health insurance), company policies, interpersonal
relationships. In general, these are extrinsic items low in the Maslow/Alderfer
hierarchy.
motivators. These are factors whose presence motivates. Their absence does not
cause any particular dissatisfaction, it just fails to motivate. Examples are all the
things at the top of the Maslow hierarchy, and the intrinsic motivators.
So hygiene factors determine dissatisfaction, and motivators determine satisfaction. The
two scales are independent, and you can be high on both.
If you think back to the class discussion on power, we talked about a baseline point on
the well-being scale. Power involved a threat to reduce your well-being, causing
dissatisfaction. Hence, power basically works by threatening to withhold hygiene factors.
Influence was said to fundamentally be about promising improvements in well-being -when you are influenced to do something, it is because you want to, not because you
were threatened. Influence basically works by offering to provide motivators (in
Herzberg's terms).
Equity Theory
Suppose employee A gets a 20% raise and employee B gets a 10% raise. Will both be
motivated as a result? Will A be twice as motivated? Will be B be negatively
motivated?
Equity theory says that it is not the actual reward that motivates, but the perception, and
the perception is based not on the reward in isolation, but in comparison with the efforts
that went into getting it, and the rewards and efforts of others. If everyone got a 5% raise,
B is likely to feel quite pleased with her raise, even if she worked harder than everyone
else. But if A got an even higher raise, B perceives that she worked just as hard as A, she
will be unhappy.
In other words, people's motivation results from a ratio of ratios: a person compares the
ratio of reward to effort with the comparable ratio of reward to effort that they think
others are getting.
Of course, in terms of actually predicting how a person will react to a given motivator,
this will get pretty complicated:
1. People do not have complete information about how others are rewarded. So they
are going on perceptions, rumors, inferences.
2. Some people are more sensitive to equity issues than others
3. Some people are willing to ignore short-term inequities as long as they expect
things to work out in the long-term.
Reinforcement Theory
Operant Conditioning is the term used by B.F. Skinner to describe the effects of the
consequences of a particular behavior on the future occurrence of that behavior. There are
four types of Operant Conditioning: Positive Reinforcement, Negative Reinforcement,
Punishment, and Extinction. Both Positive and Negative Reinforcement strengthen
behavior while both Punishment and Extinction weaken behavior.




Positive reinforcement. Strengthening a behavior. This is the process of getting
goodies as a consequence of a behavior. You make a sale, you get a commission.
You do a good job, you get a bonus & a promotion.
Negative reinforcement. Strengthening a behavior. This is the process of having a
stressor taken away as a consequence of a behavior. Long-term sanctions are
removed from countries when their human rights records improve. (you see how
successful that is!). Low status as geek at Salomon Brothers is removed when you
make first big sale.
Extinction. Weakening a behavior. This is the process of getting no goodies when
do a behavior. So if person does extra effort, but gets no thanks for it, they stop
doing it.
Punishment. Weakening a behavior. This is the process of getting a punishment as
a consequence of a behavior. Example: having your pay docked for lateness.
Reward
Apply
Withhold
positive
reinforcement
negative
reinforcement
(raise above
baseline)
(raise up to
baseline)
punishment
extinction (stay
Stressor (bring down
at baseline)
below baseline)
Reinforcement schedules.
The traditional reinforcement schedule is called a continuous reinforcement schedule.
Each time the correct behavior is performed it gets reinforced.
Then there is what we call an intermittent reinforcement schedule. There are fixed and
variable categories.
The Fixed Interval Schedule is where reinforcement is only given after a certain amount
of time has elapsed. So, if you decided on a 5 second interval then each reinforcement
would occur at the fixed time of every 5 seconds.
The Fixed Ratio Schedule is where the reinforcement is given only after a predetermined
number of responses. This is often seen in behavior chains where a number of behaviors
have to occur for reinforcement to occur.
The Variable Interval Schedule is where the reinforcement is given after varying
amounts of time between each reinforcement.
The Variable Ratio Schedule is where the reinforcement is given after a varying number
of correct responses.
Fluctuating combinations of primary and secondary reinforcers fall under other terms in
the variable ratio schedule; For example, Reinforcers delivered Intermittently in a
Randomized Order (RIR) or Variable Ratio with Reinforcement Variety (VRRV).
Fixed
give reward
after first proper
response
Interval
following a
specified time
period
Variable
give reward
after a certain
amt of time w/
the amt
changing
before the next
reward
(yearly raise)
[short term]
(unexpected
bonus based on
merit)
[medium term]
Ratio
give reward
after a number
punishment
of responses,
(subtract from
w/ that no.
baseline)
changing
before the next
(commissions or reward
piecework pay)
(team-based
[medium term] bonus)
[long term]
Expectancy Theory (Vroom)
This theory is meant to bring together many of the elements of previous theories. It
combines the perceptual aspects of equity theory with the behavioral aspects of the other
theories. Basically, it comes down to this "equation":
M = E*I*V
or
motivation = expectancy * instrumentality * valence
M (motivation) is the amount a person will be motivated by the situation they find
themselves in. It is a function of the following.
E (expectancy) = The person's perception that effort will result in performance. In other
words, the person's assessment of the degree to which effort actually correlates with
performance.
I (instrumentality) = The person's perception that performance will be
rewarded/punished. I.e., the person's assessment of how well the amount of reward
correlates with the quality of performance. (Note here that the model is phrased in terms
of extrinsic motivation, in that it asks 'what are the chances I'm going to get rewarded if I
do good job?'. But for intrinsic situations, we can think of this as asking 'how good will I
feel if I can pull this off?').
V(valence) = The perceived strength of the reward or punishment that will result from the
performance. If the reward is small, the motivation will be small, even if expectancy and
instrumentality are both perfect (high).
Theory X Assumptions:
People inherently dislike work
People must be coerced or controlled to do work to achieve objectives
People prefer to be directed
Theory Y Assumptions:
People view work as being as natural as play and rest
People will exercise self-direction and -control towards achieving
objectives they are committed to
People learn to accept and seek responsibility
Motivation Theory X - Y ( McGregor )
In his 1960 management book, The Human Side of Enterprise, Douglas McGregor made
his mark on the history of organizational management and motivational psychology when
he proposed the two theories by which managers perceive employee motivation. He
referred to these opposing motivational methods as Theory X and Theory Y
management. Each assumes that the manager's role is to organize resources, including
people, to best benefit the company. However, beyond this commonality, they're quite
dissimilar.
Theory X Management
According to McGregor, Theory X leadership assumes the following:




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
Needs Hierarchy.



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.
Essentially, theory x assumes that the primary source of most employee motivation is
monetary, with security as a strong second.
The Hard Approach and Soft Approach
Under Theory X, management approaches to motivation range from a hard approach to a
soft approach.
The hard approach to motivation relies on coercion, implicit threats, micromanagement,
and tight controls -- essentially an environment of command and control. The soft
approach, however, is to be permissive and seek harmony in the hopes that, in return,
employees will cooperate when asked. However, neither of these extremes is optimal.
The hard approach results in hostility, purposely low-output, and extreme union demands.
The soft approach results in increasing desire for greater reward in exchange for
diminishing work output.
It would appear that the optimal approach to human resource management would be lie
somewhere between these extremes. However, McGregor asserts that neither approach is
appropriate since the foundations of theory x are incorrect.
The Problem with X Theory
Drawing on Maslow's Hierarchy of Needs, McGregor argues that a need, once satisfied,
no longer motivates. The company relies on monetary rewards and benefits to satisfy
employees' lower level needs. Once those needs have been satisfied, the motivation is
gone. This management style, in fact, hinders the satisfaction of higher-level needs.
Consequently, the only way that employees can attempt to satisfy higher level needs at
work is to seek more compensation, so it is quite predictable that they will focus on
monetary rewards. While money may not be the most effective way to self-fulfillment, it
may be the only way available. People will use work to satisfy their lower needs, and
seek to satisfy their higher needs during their leisure time. Unfortunately, employees can
be most productive when their work goals align with their higher level needs.
McGregor makes the point that a command and control environment is not effective
because it relies on lower needs for motivation, but in modern society those needs are
mostly satisfied and thus no longer motivate. In this situation, one would expect
employees to dislike their work, avoid responsibility, have no interest in organizational
goals, resist change, etc., thus creating a self-fulfilling prophecy. To McGregor,
motivation seemed more likely with the Theory Y model.
Theory Y
The higher-level needs of esteem and self-actualization are continuing needs in that they
are never completely satisfied. As such, it is these higher-level needs through which
employees can best be motivated.
In strong contrast to Theory X, Theory Y leadership makes the following general
assumptions:






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.
Under these assumptions, there is an opportunity to align personal goals with
organizational goals by using the employee's own need for fulfillment as the motivator.
McGregor stressed that Theory Y management does not imply a soft approach.
McGregor recognized that some people may not have reached the level of maturity
assumed by Theory Y and therefore may need tighter controls that can be relaxed as the
employee develops.
XY Theory Management Application - Business
Implications for Workforce Motivation
If Theory Y holds true, an organization can apply these principles of scientific
management to improve employee motivation:




Decentralization and Delegation - If firms decentralize control and reduce the
number of levels of management, managers will have more subordinates and
consequently will be forced 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 evaluating how well they were met.
If properly implemented, such an environment would result in a high level of workforce
motivation as employees work to satisfy their higher level personal needs through their
jobs.
Work Motivation
Work motivation is one of the key areas of organizational psychology. Organization theory is frequently desc
organizations and the behavior of the people within organizations. Usually the term organizational psycholog
psychology. Baron and Greenberg (1990) stated that organizational psychology is the field that focuses on un
discuss aspects of work motivation.
McGregor's Theory X and Theory Y Douglas McGregor (1960) summarized two possible views of manag
control. It states that the worker dislikes work and tries to avoid it. The function of management, therefore, is
worker prefers in most cases to be directed and wants to avoid responsibility. The main motivator for the wor
Theory Y is the humanistic/self-actualization approach to human motivation. Sometimes called the human
and that when it is, the worker can be highly committed and motivated. Workers often seek responsibility and
is most likely to be used when management utilizes worker participation in organizational decisions. In their
chief differences between American and Japanese management is that American managers tend to use Theory
lessening, as evidenced by the practices of the management of the General Motors Saturn plants.
In his book Theory Z, William Ouchi (1981) described the characteristics of the Japanese companies that p
employees are guaranteed a position for life, increasing their loyalty to the company. Careful evaluation occu
among employees and management. Most employees do not specialize in one skill area, but work at several d
companies are often concerned about all aspects of their employees' lives, on and off the job. According to O
high employee morale and satisfaction. Many of these outcomes are similar to Theory Y, and research will co
companies (Landy, 1989).
Organizational psychologists have become interested in devising strategies to help workers enhance their
job satisfaction and QWL, including improving work conditions and security, increasing worker responsibilit
worker's sense of self-worth and providing opportunities for social relationships to develop within the organiz
be important in the future.
The X Y and Z of Management Theory
Introduction:
Achieving a clear understanding of human nature is an important aspect of management
in the work place. In order for managers and workers to work together as an effective and
productive unit, the workers must know how they fit into the overall scheme of things,
and the managers must have a clear understanding of how they can maximise
productivity by supporting their employees through the appropriate leadership style. It is
also extremely important for managers to realistically evaluate the working environment,
as well as the characteristics of the task, in order to decide how he or she deals with and
directs employees.
Aside from knowing how human nature dictates a worker's actions, the manager must
also be aware of the specific working environment, personalities, and motivational forces,
which drive employees. This can then be used to decide which actions are necessary to
motivate the work force, and to obtain maximum productivity.
The purpose of this paper is to discuss two theorists, Douglas McGregor and William
Ouchi, and the theories, which made them well known in the organisational development
and management arenas. McGregor, with his "Theory X" and "Theory Y", and Ouchi,
with the notion of a "Theory Z", both look at the attitudes of managers and workers with
very similar, as well as contrasting views of how workers are perceived by management,
and how workers perceive their role in the company. In these theories, the various authors
discuss how each plays an important part in the understanding of workers by
management. A comparison and contrast of these two theorists will be presented, which
will show how each might view various aspects of the relationship which exists between
management and workers, in such areas as motivation, leadership, power, authority, and
conflict, to name a few.
Douglas McGregor - Theory X & Theory Y:
In 1960 Douglas McGregor defined contrasting assumptions about the nature of humans
in the work place. These assumptions are the basis of Theory X and Theory Y teachings.
Generally speaking, Theory X assumes that people are lazy and will avoid work
whenever possible. Theory Y, on the other hand, assumes that people are creative and
enjoy work (Goldman).
Although "X" and "Y" are the standard names given to McGregor's theories, it is also
appropriate to mention here that other names for these management theories have been
used as well, and are sometimes interchanged with "X" and "Y". For instance, one author
refers to Theory X as "Autocratic Style", and Theory Y as "Participative Style" (DuBrin).
Yet another author writes that Theory X and Theory Y are sometimes termed as "hard"
and "soft" management, although careful to point out that these terms can be used
incorrectly (Benson). This information is presented in order to illustrate the different
terminologies, which have been used to describe McGregor's theories, and will be used in
this paper as well.
Theory X:
Theory X basically holds the belief that people do not like work and that some kind of
direct pressure and control must be exerted to get them to work effectively. These people
require a rigidly managed environment, usually requiring threats of disciplinary action as
a primary source of motivation. It is also held that employees will only respond to
monetary rewards as an incentive to perform above the level of that which is expected
(Bittel).
From a management point of view, autocratic (Theory X) managers like to retain most of
their authority. They make decisions on their own and inform the workers, assuming that
they will carry out the instructions. Autocratic managers are often called "authoritative"
for this reason; they act as "authorities". This type of manager is highly task oriented,
placing a great deal of concern towards getting the job done, with little concern for the
worker's attitudes towards the manager's decision. This shows that autocratic managers
lose ground in the work place, making way for leaders who share more authority and
decision making with other members of the group (DuBrin).
Theory Y:
A more popular view of the relationship found in the work place between managers and
workers, is explained in the concepts of Theory Y. This theory assumes that people are
creative and eager to work. Workers tend to desire more responsibility than Theory X
workers, and have strong desires to participate in the decision making process. Theory Y
workers are comfortable in a working environment which allows creativity and the
opportunity to become personally involved in organisational planning (Bittel).
Some assumptions about Theory Y workers are emphasised in one of the texts, namely
that this type of worker is far more prevalent in the work place than are Theory X
workers. For instance, it is pointed out that ingenuity, creativity, and imagination are
increasingly present throughout the ranks of the working population. These people not
only accept responsibility, but actively seek increased authority (Lee).
According to another of the authors studied for this project, in which the "participative"
(Theory Y) leadership style is discussed, a participative leader shares decisions with the
group. Also mentioned, are subtypes to this type of leader, namely the "Democratic"
leader who allows the members of the working group to vote on decisions, and the
"Consensual" leader who encourages group discussions and decisions which reflect the
"consensus" of the group (DuBrin).
William Ouchi - Theory Z:
Another theory which has emerged, and deals with the way in which workers are
perceived by managers, as well as how managers are perceived by workers, is William
Ouchi's "Theory Z". Often referred to as the "Japanese" management style, Theory Z
offers the notion of a hybrid management style which is a combination of a strict
American management style (Theory A) and a strict Japanese management style (Theory
J). This theory speaks of an organisational culture which mirrors the Japanese culture in
which workers are more participative, and capable of performing many and varied tasks.
Theory Z emphasises things such as job rotation, broadening of skills, generalisation
versus specialisation, and the need for continuous training of workers (Luthans).
Much like McGregor's theories, Ouchi's Theory Z makes certain assumptions about
workers. Some of the assumptions about workers under this theory include the notion that
workers tend to want to build co-operative and intimate working relationships with those
that they work for and with, as well as the people that work for them. Also, Theory Z
workers have a high need to be supported by the company, and highly value a working
environment in which such things as family, cultures and traditions, and social
institutions are regarded as equally important as the work itself. These types of workers
have a very well developed sense of order, discipline, moral obligation to work hard, and
a sense of cohesion with their fellow workers. Finally, Theory Z workers, it is assumed,
can be trusted to do their jobs to their utmost ability, so long as management can be
trusted to support them and look out for their well being (Massie & Douglas).
One of the most important tenets of this theory is that management must have a high
degree of confidence in its workers in order for this type of participative management to
work. While this theory assumes that workers will be participating in the decisions of the
company to a great degree, one author is careful to point out that the employees must be
very knowledgeable about the various issues of the company, as well as possessing the
competence to make those decisions. This author is also careful to point out, however,
that management sometimes has a tendency to underestimate the ability of the workers to
effectively contribute to the decision making process (Bittel). But for this reason, Theory
Z stresses the need for enabling the workers to become generalists, rather than specialists,
and to increase their knowledge of the company and its processes through job rotations
and continual training. In fact, promotions tend to be slower in this type of setting, as
workers are given a much longer opportunity to receive training and more time to learn
the intricacies of the company's operations. The desire, under this theory, is to develop a
work force, which has more of a loyalty towards staying with the company for an entire
career, and be more permanent than in other types of settings. It is expected that once an
employee does rise to a position of high level management, they will know a great deal
more about the company and how it operates, and will be able to use Theory Z
management theories effectively on the newer employees (Luthans).
Theory Analysis, Comparisons & Contrasts:
While several similarities and differences surround the ideas of these two theorists, the
most obvious comparison is that they both deal with perceptions and assumptions about
people. These perceptions tend to take the form of how management views employees,
while Ouchi's Theory Z takes this notion of perceptions a bit farther and talks about how
the workers might perceive management. Table 1 below shows a quick "snapshot"
comparison and contrast of the two theorists, and how they might apply the concepts
shown to their particular management theories.
Comparison & Contrast of Management Theorists
Table 1
Management
Concept
Motivation
Leadership
Power &
Authority
Conflict
Performance
Appraisals
Douglas McGregor
(Theory X & Y)
Tends to categorise people as one type or
another: either being unwilling or unmotivated
to work, or being self motivated towards work.
Threats and disciplinary action are thought to
be used more effectively in this situation,
although monetary rewards can also be a prime
motivator to make Theory X workers produce
more.
Theory X leaders would be more authoritarian,
while Theory Y leaders would be more
participative. But in both cases it seems that the
managers would still retain a great deal of
control.
As mentioned above, McGregor's managers, in
both cases, would seem to keep most of the
power and authority. In the case of Theory Y,
the manager would take suggestions from
workers, but would keep the power to
implement the decision.
This type of manager might be more likely to
exercise a great deal of "Power" based conflict
resolution style, especially with the Theory X
workers. Theory Y workers might be given the
opportunity to exert "Negotiating" strategies to
solve their own differences.
William Ouchi
(Theory Z)
Believes that people are innately self
motivated to not only do their work, but al
are loyal towards the company, and want t
make the company succeed.
Theory Z managers would have to have a
great deal of trust that their workers could
make sound decisions. Therefore, this type
leader is more likely to act as "coach", and
let the workers make most of the decisions
The manager's ability to exercise power an
authority comes from the worker's trusting
management to take care of them, and allo
them to do their jobs. The workers have a
great deal of input and weight in the decis
making process.
Conflict in the Theory Z arena would invo
a great deal of discussion, collaboration, a
negotiation. The workers would be the one
solving the conflicts, while the managers
would play more of a "third party arbitrato
role.
Theory Z emphasises more frequent
Appraisals occur on a regular basis. Promotions
performance appraisals, but slower
also occur on a regular basis.
promotions.
With respect to overall management style, McGregor's Theory X and Theory Y managers
seem to have a much more formal leadership style than do Ouchi's Theory Z managers.
McGregor's managers seem to both have different views of the workers, while their
views of the tasks remains the same in both cases: that is, one of specialisation, and doing
a particular task. Albeit that Theory Y suggests that the workers would become very good
at their particular tasks, because they are free to improve the processes and make
suggestions. Theory Z workers, on the other hand, tend to rotate their jobs frequently, and
become more generalists, but at the same time become more knowledgeable about the
overall scheme of things within the company. Several parallels indeed exist between
these two theorists. Namely McGregor's Theory Y, and Ouchi's Theory Z both see the
relationship between managers and workers in a very similar light. For instance, they
both see managers as "coaches", helping the workers to be more participative in their
endeavour to be more productive. They both are more group oriented than the Theory X
assumptions, which seem to be more individual oriented. One of the most notable
similarities between McGregor's Theory Y and Ouchi's Theory Z appears in the form of
the type of motivation that makes the workers perform in a way that enables them to be
more productive. While the Theory X worker is said to require coercion, threats, and
possibly even disciplinary action, Theory Y and Theory Z workers are, again, self
motivated. This allows them to focus on the task, and also their role within the company.
Their desire is to be more productive and enable the company to succeed. Theory X
workers, on the other hand, seem to have just enough self motivation to show up at work,
punch the time clock, as it were, and do only that which is necessary to get the job done
to minimum standards.
Summary & Conclusions:
Many assumptions are made in the work place, based on observations of the workers, and
their relationship with management. The types of tasks being performed, as well as the
types of employees which make up a particular organisation can set the stage for the
types of leadership roles which will be assumed by managers. Theory X, which shows
that workers are assumed to be lazy and do not want to work, seems to be giving way to
theories, which suggest that workers tend to be more participative and creative. Creativity
and motivation naturally lend themselves to a more effective organisation. While
McGregor's Theory Y seems to address the more motivated type of employee, Ouchi's
Theory Z seems to take that notion a step farther by implying that not only are
assumptions about workers made, but assumptions about managers as well. That is to say
that under Ouchi's theory, managers must be more supportive and trusting of their
employees, in order to receive the benefit of increased participation in the decisions of
the company. As is clearly seen by comparing and contrasting these two theorists,
assumptions about people can be more clearly understood in order for managers and
workers to make for a more productive environment in the work place.
Maslow's Hierarchy
In 1943 Abraham Maslow, one of the founding fathers of humanist approaches to
management, wrote an influential paper that set out five fundamental human needs
needs and their hierarchical nature. They are quoted and taught so widely now that
many people perceive this model as the definitive set of needs and do not look further.
The hierarchical effect
A key aspect of the model is the hierarchical nature of the needs. The lower the needs
in the hierarchy, the more fundamental they are and the more a person will tend to
abandon the higher needs in order to pay attention to sufficiently meeting the lower
needs. For example, when we are ill, we care little for what others think about us: all
we want is to get better.
Click on the needs in the diagram below for more detail, or read below for a quick
summary of each.
The five needs

Physiological needs are to do with the maintenance of the human body. If we are
unwell, then little else matters until we recover.
 Safety needs are about putting a roof over our heads and keeping us from harm.
If we are rich, strong and powerful, or have good friends, we can make
ourselves safe.

Belonging needs introduce our tribal nature. If we are helpful and kind to others
they will want us as friends.
 Esteem needs are for a higher position within a group. If people respect us, we
have greater power.
 Self-actualization needs are to 'become what we are capable of becoming', which
would our greatest achievement.
Three more needs
These are the needs that are most commonly discussed and used. In fact Maslow later
added three more needs by splitting two of the above five needs.
Between esteem and self-actualization needs was added:

Need to know and understand, which explains the cognitive need of the
academic.
 The need for aesthetic beauty, which is the emotional need of the artist.
Self-actualization was divided into:

Self-actualization, which is realizing one's own potential, as above.
 Transcendence, which is helping others to achieve their potential.
So what?
Using it
To distract people from higher needs, threaten their lower needs. It is no surprise that
poison has been effectively used to bring down kings and princes without necessarily
killing them.
Perceive and help people to meet the needs on which they currently focused. Their
attention is here and they will thank you for assistance in meeting their present needs.
Encourage them reach up to higher needs. Let them see and reach up to the greater
things in life. Create a tension which you can use for your purpose.
Defending
Seek only needs at your current level. Neither retreat too rapidly to lower needs nor
reach too quickly for higher needs. When you are ready, only then reach in your own
time for higher needs. If other people seek to help you, you may accept their help but
are not obliged to repay in any way they demand.
Herzberg's Motivation-Hygiene Theory
Explanations > Needs > Herzberg's Motivation-Hygiene Theory
Description | Research | Example | So what? | See also
Description
We have basic needs (hygiene needs) which, when not met, cause us to be dissatisfied.
Meeting these needs does not make us satisfied -- it merely prevents us from becoming
dissatisfied. The 'hygiene' word is deliberately medical as it is an analogy of the need to
do something that is necessary, but which does contribute towards making the patient
well (it only stops them getting sick). These are also called these maintenance needs.
There is a separate set of needs which, when resolved, do make us satisfied. These are
called motivators.
This theory is also called Herzberg's two-factor theory.
Research
Herzberg asked people about times when they had felt good about their work. He
discovered that the key determinants of job satisfaction were Achievement,
Recognition, Work itself, Responsibility and Advancement.
He also found that key dissatisfiers were Company policy and administration,
Supervision, Salary, Interpersonal relationships and Working conditions.
What struck him the most was that these were separate groups with separate evaluation,
and not a part of the same continuum. Thus if the company resolved the dissatisfiers,
they would not create satisfaction.
Example
I need to be paid on time each month so I can pay my bills. If I am not paid on time, I
get really unhappy. But when I get paid on time, I hardly notice it.
On the other hand, when my boss gives me a pat on the back, I feel good. I don't expect
this every day and don't especially miss not having praise all of the time.
So what?
Using it
Differentiate between hygiene needs and motivator needs. Ensure you address
motivator needs when getting someone to do something. Attacking hygiene needs
may be effective when trying to stop them doing something.
Defending
Beware of the person giving you what you really need. Ask 'What's in it for them?'
Motivator factors increase job satisfaction:
Achievement
Recognition
Work itself
Responsibility
Advancement
Growth
Hygiene factors are those whose absence can create job dissatisfaction:
Supervision
Company policy
Working conditions
Salary
Peer relationship
Security
(Frederick Herzberg, Work and the Nature of Man, 1966)