McGregor’s Theory X and Theory Y

Douglas McGregor’s book ‘The Human Side of Enterprise’ (1960), explained two different theories of worker motivation which might be applied by a manager depending on how they perceived typical workers. Theory X required a more authoritarian style of management, because a manager thought workers were disinterested and required constant supervision and direction; whilst Theory Y adopted a more engaging style of management where a manager thought workers were interested and wanted to do a good job.

Theory X assumes workers have little desire for work, are low skilled, want to do as little as possible for their pay packet / salary, do not want to take responsibility for work, are focused on themselves rather than others or the organisation, and will lounge about if they can get away with it. If a manager has this perception of their workers then the implications can be that workers respond accordingly with the creation of an environment that is mistrustful, a desire to only work at a low output and to routinely check with supervisors on what is required rather than offering to take some initiative. In essence the manager’s perception becomes a self-fulfilling prophecy with workers being relatively contented to reinforce the perception.

Relatively high staff turnover and continual recruitment, along with staff inductions, even if relatively basic induction programmes are undertaken, will also require time from a manager, which would be better spent on more productive work.

The management style needed for his type of worker is one of a hands-on approach, with direct supervision, clear direction and control of work efforts and outputs, specifically relating work outcome to the individual doing the work making achievement of targets clearly measurable. A manager would typically be undertaking very active management, and this could have potentially significant negative impacts on their own health and wellbeing, as well as their own productivity. Trying to continually motivate and engage workers who will typically feel undervalued and resentful of the manager’s approach can be very tiring. Errors of judgement can readily creep into decision making and this could have a negative impact on a manager’s performance overtime.

McGregor considered two approaches to implementing Theory X: a hard approach or a soft approach. The hard approach would be very strict, punishing workers who fell out of line, and could involve intimidating and bullying workers to achieve the desired outcomes. A soft approach aimed to encourage employee co-operation and teamwork, aiming to share good practice amongst themselves and encourage limited initiatives by having more relaxed but still controlling regime, but always with the implicit threat of punishments if workers also fell out of line.

Theory X would rarely be implemented in full in a modern workplace. However, where trainees are involved, or new working practices are being introduced a more controlled and directed management approach could be taken, but without the out-dated punishment threats, so a more empathetic and encouraging approach to Theory X would be applied within today’s workplace.

Theory Y assumes workers are competent, enjoy the work they do, are intrinsically motivated, are creative in the ideas they generate, take responsibility and can make informed routine decisions without having to wait for confirmation from a manager at every turn, although they will have been instructed on what tasks to carry out by a manager, having their scheduled planned for them. This perception of workers helps to build trust amongst the workforce, provides empowerment to workers, creates a more positive and welcoming work environment, and helps to reinforce respect and being valued amongst the workforce.

The likelihood of staff staying with an organisation for longer periods of time in their careers increases and this has a reduction in the cost and time needed for recruitment activities.

The work produced will typically be up to the desired standard and productivity will be good to acceptable and the manager will have a mostly hands-off approach, almost touching on a laissez-faire approach. However, over time, the desire for a worker to be creative can negatively impact on a standardised approach and reduce the consistency of outcomes, whilst working practices can become complacent and increase the likelihood of accidents happening. To ensure standards and safety is maintained, and improved, engaging workers in some form of periodic self-assessment or discussion process may help to reduce the potential for complacency to encroach into working practices.

Theory Y could be supported in modern workplaces with regular review and team meetings, engaging workers in business planning and strategic outcomes, the encouragement of ideas and involvement in continuous improvement of products, services and working practices, along with regular constructive feedback on working standards. In addition, the creation of a work environment in which idea sharing is encouraged along with a work culture that is open and transparent can contribute to the development of a successful organisation.

Involving workers in their own self development through education and training courses can also help to maintain the self-motivation of many individuals, whilst at the same time contributing to workplace standards and productivity.