Critically evaluate McGregor's Theroy X and Theory Y

Employee motivation is, or at least must be, one of the key issues for directors, managers and personnel managers. The leader must be able to find the sensitive strings of his subordinates, which can be motivated by influencing them to achieve high performance. The correct use of motivation encourages staff to make more efficient use of their knowledge, skills, and talents. In today's turbulent, often chaotic environment, commercial success depends on the employee's talent and effort. Despite the many existing theories and practices, some of the motivation of leaders today remains a mystical term. This is partly due to the fact that people are motivated by different things and techniques.

According to researcher Lindner (1998), motivated employees are needed in our rapidly changing workplaces to aid in the survival of organizations. Not only is it important to meet the needs of the consumer, it is equally important that to make sure that associates are taken care of and remain motivated. For this reason, Gibson, Ivancevich, Donnelly and Konopaske (2012) “states much of management’s time is spent addressing the motivation of their employees” (p. 125). According to the Encyclopedia of Small Business (2007), employee motivation is the level of energy, commitment, and creativity employees bring to their jobs; the inner force that drives individuals to accomplish personal and organizational goals (Lindner, 1988). Despite its obvious importance, employee motivation can be an elusive quest for managers due to the multiplicity of incentives that can influence employees to do their best work. The reality is that every employee has different ways to become motivated and the knowledge of how to motivate them is key to organizational success. It is imperative that employers get to know the personal needs and wants of their employees in order to establish tactics in which to motivate each of them. Once achieved, “managers are in a better position to encourage and reward employees to behave in effective ways” (Gibson et al, 2012, p.

When managing people, McGregor’s model, indicated below, shows to styles of management. Theory X is directive, whereas Theory Y is enabling, and looks at employee engagement/ teamwork in order to achieve the

Theory X was labeled by McGregor as being a “hard” style of management, where hard meant that management would have close supervision on its workers, as well as having strong control and coercion. He determined that a hard style would not be effective for production and organization that practiced this style would have restricted output and workers would distrust management, therefore there would be a need for a softer side of management. McGregor based his evaluation of Theory X manager’s on Abrahams Maslow’s Hierarchy of Needs theory (Barnett).

Motivation according to Kelley (2014) is the ‘process through which managers build the desire to be productive and effective in their employees’. If an employee is motivated, they are more likely to be productive and generally staff turnover is low. The problem of worker motivation is that workers are not seen as humans, they have a lack of freedom at the workplace and lack of job fulfilment. Taylor and McGregor Theory X argue that there is not a problem with worker motivation, workers will be obedient because of fear of losing their job motivates them to do well. Whereas Maslow and McGregor’s Theory Y argues that there is a problem with worker motivation because of class conflict between the worker and the manager. The

Over the last several years, the issue of employee motivation inside the workplace has been increasingly brought to the forefront. The reason why is because, globalization has been having an effect on the ability of firms to compete (which is placing more pressure on them). To deal with these challenges, most organizations are relying on their employees. The results are that those employers who are able to use this resource will be able to make adjustments quickly. This is when the firm will be able to maintain their dominance in the marketplace.

There are very many factors that motivate employees to do outstanding work in their jobs. Though most of them are non-monetary factors like participative decision making, work teams, challenging jobs, goals in life or in the company, power and other factors. Most of the employees that emerge in their workplace, either in a small cubicle or a mega office have got some drive that enable them to perform in their work, but the key question is, is money is the key motivation in their workplace? In this essay both sides will be argued in order to find the answer to this (Robbins, Odendaal & Roodt, 2003).

Douglas McGregor was a management professor at the MIT Sloan School of Management. He introduced a new motivational theory in his book ‘The Human Side of Enterprise’, stating that all workers were divided into two groups: Theory X and Theory Y. Theory X workers were lazy, irrational and unreliable, and were only motivated by money and threatened by punishment. Theory Y workers were able to seek and accept responsibilities and fulfil any goals given.

Motivation in the workplace is one of the major concerns that managers face when trying to encourage their employees to work harder and do what is expected of them on a day-to-day basis. According to Organizational Behavior by John R. Schermerhorn, James G. Hunt and Richard N. Osborn the definition of motivation is "the individual forces that account for the direction, level, and persistence of a person's effort expended at work." They go on to say that "motivation is a key concern in firms across the globe." Through the years there have been several theories as to what motivates employees to do their best at work. In order to better understand these theories we will apply them to a fictitious organization that has the following

Keeping employees motivated in addition to creating incentives and/or additional ways for employees to receive more compensation will create better performance overall within an organization. Contrary if company B gives their employees incentives to perform, without any motivational tactics they probably will not have as many top performances as company A, in addition the company may only seek short term rewards verses have long term success. Lack of motivation for employees within an organization, can cause long term damage for the company’s success. Different things motivate everyone; therefore there should be a system in place to keep employees motivated for the long term success of the company. In the MBM textbook under the concept of incentives, compensation, and motivation, there are a couple of different views of how it should be applied within an organization. We will discuss The Social Role of Profit, Personal Profit and Losses, and the way Market-Based Management view how incentives, compensation, and motivation should be applied and the things that effectively drive employees’ actions while at work.

2007). Kermally (2005, p.36) explain that McGregor believed ‘how managers manage people in practice depends on what assumptions they make about workers’. It means that which kind of leadership managers choose, according to how managers perceive workers’ attitudes toward their job. Managers believe their workers related to Theory X and Y normally use strict supervision approaches to reduce workers’ control on their job, in contrary, managers allow workers to be innovative and willing to authorise more responsibility to Theory Y workers (Waddell et al. 2007).

10. McGregor’s Theory X and Theory Y • Taught psychology at MIT. • At Antioch College, McGregor found that his classroom teaching of human relations did not always work in practice. • From these experiences, his ideas evolve and lead him to recognize the influence of assumptions we make about people and our managerial style. Content Theories of Motivation McGregor‟s Theory X and Theory Y – Theory X • Assumes that workers have little ambition, dislike work, avoid responsibility, and require close supervision. – Theory Y • Assumes that workers can exercise self- direction, desire responsibility, and like to work. – Motivation is maximized by participative decision making, interesting jobs, and good group relations.

Industrial/Organizational (I/O) Psychology is devoted to the study of employee behavior in the workplace and understanding the issues facing organizations and employees in today’s complex and ever changing environment. Motivation refers to the set of forces that influence people to choose various behaviors among several alternatives available to them. An organization depends on the ability of management to provide a positive, fostering and motivating environment for its employees in order to increase profits, productivity and lower turnover rates of its employees. The purpose of this paper is to discuss and compare six academic journal articles and explore the behavior, job, and need based theories of motivation that can aid management in motivating and understanding their employees. Finding that delicate balance to can sometimes be elusive so effectively learning how to motivate by understanding, controlling and influencing factors to manipulate behavior and choices that are available to employees can produce the desired outcome.

McGregor 's revolutionary assumption, Theory Y contends that individuals are self-motivated and self-directed while his other assumption, Theory X insists that employees must be commanded and controlled. Every day managers that utilize McGregor’s assumptions have the choice to either believe Theory X and control their

Douglas McGregor presented Theory X and Theory Y in his book “The Human Side of Enterprise”. In these two theories McGregor has presented two types of managerial style. Theory X says that management is responsible for directing efforts of the people, motivating them, controlling their actions