BRIGHT IDEAS: A WHISPER FROM THE PAST

A HANDBOOK ON MANAGEMENT THEORY TURLEY AND CO. MANAGEMENT

INTRODUCTION

The Bright Ideas handbook is an overview of six classical theorists and theories of management. The purpose of the handbook is to help managers to broaden their understanding of management practices in order to improve the productivity of their organizations. Managers can learn from the wisdom of previous generations while implementing their own creative innovations from the information presented. The Bright Ideas handbook uses clear objectives to guide readers in obtaining a greater understanding of the six represented classical theories. Evaluations are provided at the end of each chapter for the readers benefit, as well as the answers to those evaluations.

CHAPTER 1: DOUGLAS MCGREGOR THEORY X AND THEORY Y A Biographical Sketch

Douglas McGregor was a successful businessman and an educator. He earned a MA and PhD psychology at Harvard University. He taught psychology and industrial management at MIT for many years. His book The Human Side of Enterprise was foundational to the development of human relationship focused management processes. He was a believer in maintaining authority in a management position while allowing for an environment where workers could grow and better themselves as well as their organizations.

The ingenuity of the average worker is sufficient to outwit any system of controls devised by management.
Douglas McGregor

OBJECTIVES
By the end of this chapter managers will be able to:
1. Identify the major components of McGregors Theory X. 2. Identify the major components of McGregors Theory Y. 3. Apply components of both Theory X and Theory Y to real life management situations.

AN INTRODUCTION TO MCGREGORS THEORIES

Douglas McGregors most influential theories are those expressed in The Human Side of Enterprise, namely Theory X and Theory Y. Theory X and Theory Y are contradictory to one another, but together they explain many of observations made between managers and their subordinates. Theory X proposes that management should be authoritative and can control subordinates through threat of punishment. Theory Y suggests that management should create an environment where subordinates can grow and develop while management guides the process. Understanding these classical theories will help managers to expand their understanding of how working with and through human relations is beneficial.

THEORY X
Theory X proposes that humans inherently dislike work and seek to avoid it whenever possible. Not only does Theory X suggest that humans are inherently lazy, but that they desire to avoid responsibility altogether. Humans wish instead to be directed in what they should be doing. The ambitious individual does exist in Theory X, but these people are few and far between.

Human Resource Perception of Theory X

Key Terms

Theory X insists that human resources must be controlled and constantly compelled to advance their work. The manager is responsible for the totality of productive innovation and decision making. A manager should: Coerce Direct Control Threaten with punishment Provide structure and compel compliance

A Managers Primary Roles in Theory X

Human Resource: A person who is employed by an organization to do a specific job. 6

THEORY X
Theory X grants the necessary authority to managers so that they can do their jobs successfully. It also helps managers realize that their human resources will need direction and discipline to do their jobs successfully. The theory also provides a model for some aspects of individuals that will be employed that have not been provided a challenging work experience previously. In this situation managers may resort to the application of theory X while introducing the worker to a more challenging and selfsatisfying environment.

Strengths of Theory X

The major weakness of Theory X is that it does not see the full potential of human resources. Since managers basing their management style on Theory X assume that their workers inherently lack ambition, these managers never give their subordinates an opportunity to demonstrate ambition. Workers come to feel that work is a place where they must exchange their time and effort for monetary gain. This often results in low worker productivity and zero selfedification in the work place. Workers quickly become bored with their jobs and only seek to do the minimum that is required of them. In this situation, ridged guidelines set by an authoritative management style smooth creativity and selfimprovement. 7

Weaknesses of Theory X

THEORY Y
Human Resource Perception of Theory Y

Theory Y proposes that humans are both ambitious and productive in their jobs when they are allowed to grow and develop. Humans are naturally ambitious but often lose perspective of their ambitions when placed in an environment where those ambitions are not allowed to develop. Work and play require the same amount of effort from a human and work can become more like play when work provides meaningful rewards. Humans need to fulfill sophisticated needs the greatest and last of which is self-actualization, which is in most cases a meaningful reward. The theory also suggests that when given the opportunity humans will often rise to a challenge and exceed expectations. When a human lacks ambition and is unproductive, it is likely because his or her needs are not fulfilled.
Self-actualization: A persons endeavor to become her or his best self.

THEORY Y
A Managers Primary Roles in Theory Y

A manager using Theory Y will accomplish the goals of the organization by integrating managerial and workers efforts. In Theory Y managers supply workers with ample opportunity to grow and develop. This is done through delegation of responsibility, praising while directing, and providing a constant challenge. The manager should: Trust and instill commitment Delegate Provide meaningful rewards Provide a challenging but not overly stressful work environment. Evaluate and provide effective guidance. Integrate worker and managerial effort.

THEORY Y
Strengths of Theory Y

Theory Y inspires human resources to become the best that they can become. The theory promotes productivity through self-improvement and the aligning of individual workers goals with the organizations goals. Theory Y provides opportunities that foster creative problem solving at every level of employment, creating an explosion of creative solutions to real life problems. Workers are often more committed and eventually view their work as satisfying. Light discipline is required and reassuring guidance replaces harsh punishment. This allows managers to redirect their efforts from threatening punishment to creating an environment where their subordinates can reach selfactualization. Therefore, Theory Y creates better working conditions for managers who will ultimately find greater satisfaction with their jobs as well.

Theory Y does not provide an adequate model for managers to deal with workers that do not take initiative or abuse the authority they are given. Authority is essential to a managers success, and Theory Y suggests that managers expression of absolute authority can be damaging. Although in some cases, punishment and absolute managerial authority might be an appropriate response to a workers behavior. Theory Y also fails to capture every individuals specific needs. It does not provide a method of identifying an individuals needs but it proposes that the needs of an individual are vital to generating ambition in that individual.
10

Weaknesses of Theory Y

A COMBINATION OF THEORY Y AND THEORY X

Conclusion
Ultimately a combination of Theory X and Theory Y will create the best results in the productivity of human resources and management. Here are five tips for combining these contradictory theories in real world managerial applications. 1. 2. 3. Create an environment where employees can develop themselves while appropriately maintaining policies and procedures that outline the managers authority. Delegation is essential to the success of a manager and a manager must trust those with delegated responsibility. Decisions should be made as a group but the manager should always have the final authority on decision making. Punishment should be reserved for those who show no ambition to be productive, otherwise discipline with reassuring guidance. Managers and workers goals should reflect the organizations goals.

4.
5.

11

EVALUATION

Match the responses on the right hand side with the theories on the left hand side. 1. Theory X 2. Theory Y

A. People inherently dislike work. B. Promotes the integration of managerial and workers efforts. C. People find work enjoyable when they receive meaningful rewards. D. Managers should maintain absolute authority. E. Threats of punishment are the most effective control. F. Providing selfimprovement opportunities while offering guidance is vital to productivity

12

CASE STUDY
A manager of a thriving foodservice is met with a decision to make when an employee shows an immense lack of productivity. The employee has worked for the company for several years and has been trained effectively in his position. The employee was very effective in the first year of his occupation and had even made some improvements in the companys procedures. The manager decides to observe the less productive employee, and sees the employee appears bored with his position. The manager also observes the less productive employee being reprimanded harshly by his supervisor. When the manager questioned the supervisor responsible for the less productive employee, the supervisor stated that there was no reason for the employee to be as slow at doing his task as he was in that moment. At the same time the supervisor reports that this employee has also been arriving to his post late during morning shifts. How could the manager in this situation use components of Theory X and Theory Y to help this employee improve his productivity?
13

ANSWERS

Answer Key for Evaluation 1. Theory X matches with responses A, D, and E. 2. Theory Y matches with responses B, C, and F. Answer for Case Study In this situation the manager should consider giving the less productive employee room to grow. This can be accomplished by giving the employee new and more challenging responsibilities in the workplace. This would most likely be effective since the employee has shown ambition in the past. It will also be essential for the manager to assert his or her authority and warn the less productive employee of the consequences of disregarding company attendance policies. The manager will most likely wish to follow up reprimands with constructive guidance and reassurance towards the employees ability to perform his tasks.
14

BIBLIOGRAPHY
1. Blake W, Mouton J. The Managerial Grid. Houston: Gulf Publishing Company; 1985. 2. Fiedler FE. A Theory of Leadership Effectiveness. New York: McGraw-Hill Inc; 1967. 3. Herzberg F. One more time: How do you motivate employees. Harvard Bus Rev. 1968. 4. Likert R. New Patterns of Management. New York: McGraw-Hill; 1961. 5. Maslow AH. Motivation and Personality. New York: Harper & Row Inc; 1954. 6. McGregor D. The Human Side of Enterprise. New York: McGraw-Hill Inc; 1960.

85

INDEX
Advocacy. 51,54,57,60,63,66 Blake, R ..49 Communication..19 Conflict Resolution .51,54,57,60,63,66 Contingency Model ..75 Country Club Style..56 Critique ..51,54,57,60,63,66 Decision Making.. 51,54,57,60,63,66 Elements of Leadership..51 Employee-Centered Focus..14 Esteem Needs .29 Fostering Group Loyalty...18 Fiedler, F 73 Hezberg, F 39 Hygiene Factors .37 Hierarchy of needs.22 Holding Meaningful Group Meetings ..17 Human Resources .5 Impoverished Style.59 Initiative. 51,54,57,60,63,66 Inquiry.51,54,57,60,63,66 Leadership Style .73, 77-78 Likert, R ..12
16

Love and Belonging Needs..28 Managerial Grid ...47, 52 Maslow, A ....24 McGregor, D ...3 Middle-of-the-Road Style..62 Motivation factors ...37 Motivation Theory ...36 Produce or Perish Style..53 Psychological Needs..26 Pulling and Trusting .15 Organizational Leadership...79-81 Safety needs..27 Self-actualization ...7, 30 Team Style.65 Theory X .5,6 Theory Y ........7-10 Types of Leaders 16 Vertical loading .38

17