Schools of Management Thought:

Theory X & Theory Y

Jocelyn Aleman, Jessica Baliwalla, Shadi Laghai, Anton Tsyhanok

BOH4M

Origin of the Theory

• A business management strategy developed by social psychologist Douglas McGregor

• First wrote of theory in his book “The Human Side of Enterprise” in 1960

• McGregor believed that Theory X dominated in the 1960s

• McGregor believed that managers should follow Theory Y

By Jocelyn Aleman

Group Production Activity:Manager Instructions

Purpose: Your group must create as many smiley faces as possible in the allotted time.

• Divide into your respective groups, either Group X or Group Y.

• One individual in each group is the manager, which is on their slip of paper.

• Using the materials provided, create as many smiley faces as possible within a minute and a half.

• If you produce the most smiley faces, there are prizes.

• For Group X, the manager will win the prizes of everyone in the group.

• For Group Y, everyone in the group will win a prize. By Jessica Baliwalla

Theory Y

Theory X

Core Beliefs of Theory X

• Authoritative (autocratic) method of management

• Managers make assumptions about their workers

• Often have a hierarchy structure, so that they can have complete control over their workers.

• Managers that use this style of management are often task oriented, emphasize on productivity and often don’t concentrate on creating positive relationships

• People working for these types of managers are often motivated by either fear or money and often feel unappreciated

By Anton Tsyhanok

Core Beliefs of Theory Y

• Managers tend to be participative when making decisions, and value both results and relationships

• Priorities will be given to developing positive work environments, and expressing regular recognition and appreciation

• People working for these managers tend to feel appreciated and dignified

• Workers generally have good morale and feel motivated.

By Anton Tsyhanok

Limitations of the Theory

THEORY ‘ X ’

• Only fulfills lower needs (money and job) and higher needs (job satisfaction)

• Workers may not be able to develop and apply their full capabilities

THEORY ‘ Y '

• Some workers need the structure and instruction of the Theory X manager

• Impossible to create an environment that benefits and pleases everybody

By Shadi Laghai

Limitations of Both

• Restricted to only the two theories

• A lot of assumptions and generalizations about the two theories

• Most managers are a mix of Theory X and Y

• Theory X and Y may each be better fits in different circumstances

Works Consulted "Biography: Douglas McGregor." University of Western Ontario.

N.p., n.d. Web. 18 Oct. 2013. Cunningham, Robert A. "Douglas McGregor – A Lasting Impression."

Ivey Business Journal. N.p., Sept.-Oct. 2011. Web. 21 Oct. 2013.

Expertprogrammanagement.com. "Theory X and Theory Y." Expert Program Management. Expertprogrammanagement.com, 2011. Web. 21 Oct. 2013.

Fong, Kenny. "McGregor's Theory X Theory Y & Maslow's Hierarchy of Needs." Comm in Workplace. N.p., 19 Mar. 2012. Web. 21 Oct. 2013.

"Idea: Theories X and Y." The Economist. N.p., 6 Oct. 2008. Web. 18 Oct. 2013.

Morse, John J., and Jay W. Lorsch. "Beyond Theory Y." Harvard Business Review. N.p., n.d. Web. 21 Oct. 2013.

Yong, Jonathan. "The Limitations of Theory X and Theory Y." CommunicateSmart. N.p., 26 Mar. 2012. Web. 21 Oct. 2013.