Theory: Theory X and Theory Y
Theorist: Dr. Douglas Murray McGregor
Biography:
Douglas Murray McGregor was born in Detroit Michigan in 1906 and he died in 1964 in
Concord Massachusetts. McGregor held many different jobs while he worked to obtain his
education. These positions ranged from a night watchman, a manager of Buffalo Grey auto
stations to working for his father who was the director of a mission home in Detroit named the
McGregor Institute. He held an AB degree from City College of Detroit, an AM degree from
Oberlin College in Ohio and he received his Ph.D. in psychology from Harvard University in
1935. After graduation he worked at Harvard as an instructor and tutor before moving to
Massachusetts Institute of Technology (MIT) to work as an assistant professor of psychology.
He then worked at several positions as a consultant and arbitrator including working with the
department of labor during WWII. In 1948 he assumed the position of president of Antioch
College in Ohio where he worked until 1954. He then returned to MIT where he served in
various positions until his death (“McGregor, Douglas Murray” 2008).
Description of Theory:
In 1960 Douglas McGregor wrote a very influential book based on two different theories,
which predicated the management styles of the period. In the penning of these two theories
McGregor was quite ahead of his time and has become the source of much of todays
management training. According to McGregor these two theories made clear distinctions
between the natural tendencies of these two management styles. At the heart of the theories lie
two different approaches rooted in deep assumptions of what motivates us (Stewart, 2010).
According to McGregor, “The key question of top management is what are the assumptions
(implicit as well as explicit) about the most effective way to manage people?” From this
question Dr. McGregor and a colleague Mr. Sloan began to seek out how can they better use
mangers to achieve more success creating an environment for more productivity with regard to
economics as well as enterprise. They felt as though there was a very vast difference between
how managers performed their jobs with respect to the individual who reports to them
(McGregor, 2006).
McGregor chose the names of Theory X and Theory Y for the distinction between the
two styles of management. The names for the theories McGregor chose from two letters to avoid
showing bias to one or the other. McGregor wanted to ensure that equality was shown to both
theories due to fact that there are in fact good qualities in both when used in the correct manner
(Stewart, 2010). Theory X accounts for the management style where managers will place
importance on the individual and the individual characteristics in which employees work. This
theory creates the assumptions that employees are not accountable for their own stewardships
and at odds with management. According to Theory X most individuals are in fact not motivated
and indifferent to their work. Theory Y on the other hand implies that the problem lies with
management and the methods used to govern (McGregor, 2006).
Theory X further states that the employee is: “lazy and self-centered, lacks ambition,
dislikes change and longs to be told what to do.” The manger, according to Theory X must
therefore exert complete control over the employee. This falls in line with threatening the
employee to create motivation. Theory Y on the other hand states that employees long to
actively be a part of their situation and further long to extend their own stewardships and
responsibilities. Therefore the best way to manage under this theory is empower the individual
and allow them to grow into their own natural tendencies (Stewart, 2010). (See Figure 1)
Theory X shows a militant style of management in which individuals are not concerned with
one’s own self –esteem or self respect. Theory X also communicates that individuals are not
concerned with respect or appreciation from their peers. Theory Y utilizes a higher self-image
according to Maslow’s hierarchy of human needs. An individual is longing to satisfy not only
the basics needed to maintain, but naturally longs to be successful in all endeavors especially
those associated with higher order needs. Theory Y shows that the limit that is placed on the
individuals abilities is in fact not the individuals fault, but lies within the style of management
that is being used and management’s inability to take advantage of the individual employee’s
characteristics (McGregor, 2006).
According to McGregor, when an employee has satisfied their needs according to
Maslow’s hierarchy of human needs, this individual does not have the same level of motivation.
Therefore according to Theory X when the lower order needs have been met they are no longer
motivated. According to Theory X an individual will in fact look outside of work to satisfy their
higher order needs. According to Theory Y employment can in fact serve to fill both of the
lower level needs as well as the higher order needs. By filling these higher order needs
individuals are more productive and satisfied (Internet Center for Management and Buiness
Administration, Inc., 2002-2010).
“To completely achieve the model in which Theory Y is based upon there must be a
collaborative effort by both parties. Realization of this model requires that both parties make a
sincere effort to achieve the joint needs of both the individual and the group or organization as a
whole. Without this integration the potential of the Theory Y model will not be achieved and the
group as well as the individual will suffer (McGregor, 2006).”
Prepared By: Jason Champion
References:
Internet Center for Management and Business Administration, Inc. (2001-2010).
Netmba.com. Retrieved Sept. 20 2011 from
http://www.netmba.com/mgmt/ob/motivation/mcgregor/
McGregor, D. (2006). The Human Side of Enterprise. New York: McGraw-Hill Companies, Inc.
"McGregor, Douglas Murray." (Ed.). Encyclopedia of the History of American Management.
London: Continuum (2006). Credo Reference. 27 Oct. 2008. Web. 20 Sept. 2011.
<http://www.credoreference.com/entry/contham/mcgregor_douglas_murray>.
Stewart, M. (2010). Theories X and Y, Revisited. Oxford Leadership Journal , 1(3), 1-5
Diagrams:
Management control model
Static
Employee motivation low
Empowerment
Dynamic
Employee motivation High
Figure 1. Word art view of management paradigms of Theory X and Theory Y