VII. THEORY X AND THEORY Y
► LEARNING OBJECTIVE 5
Explain the differences between Theory X, Theory Y,
and Theory Z. (Text page 39)
A. American social psychologist Douglas
McGregor proposed a division of
management styles that capture what are
fundamentally different ways of managing
people.
1. THEORY X managers manage in a
very controlling and authoritative
manner.
2. THEORY managers believe that
employees:
a. can be trusted to meet production
targets without being threatened
b. will often seek additional
responsibilities because they
enjoy the satisfaction of being
creative and increasing their own
skills
3. The theory Y manager manages in a
democratic and participative manner.
B. In the late 20th century a broader approach
to management was proposed.
POWERPOINT 2-13
Theory X and Theory Y
(Refers to text page 39)
CRITICAL THINKING
EXERCISE 2-1
Theory X or Theory Y
Students are asked to analyze
the assumptions of a past
boss. See complete exercise
on page 2.Error! Bookmark
not defined. of this manual.
CRITICAL THINKING
EXERCISE 2-2
Management Challenge
How would a Theory X boss
handle a crisis situation?
How would a Theory Y
boss? See complete exercise
on page 2.Error! Bookmark
not defined. of this manual.