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X,Y,Z THEORIES OF

MANAGEMENT
(Theories of Motivation)

Yasya Vallabhaneni
o W ang
o Xin

Overview
Introduction
X Theory
Y Theory
Z Theory
Case study
Conclusion

Introduction
Used in Human Resources,Organization Behavioural
Analysis and Organizational Development
Pertains to Human Motivation
Describes three different attitudes towards workforce
motivation

Theory X and Theory Y were created


by Douglas McGregor
He used the concept of the Theory X manager
to represent the prevalent way to manage
employees during the 50s.
In the 1960s, freedom was a popular concept
for postulation about how life should be, and in
1960 McGregor penned his work,
The Human Side of Enterprise
He proposed the ideal management theory
which he called Theory Y

Theory Z was created by


William Ouchi.
An American professor and
author in the field of business
management.
He was a pioneer in introducing
interactional leadership theory in
his application of Japanese-style
management to corporate
America.

What is the X Theory of


Management?

Theory X of Management
Pessimistic Assumptions
Impediment to employee morale and productivity

Assumptions of Theory:
Inherently lazy and will avoid work
Only interested in money
In need of close supervision
Employees are
Have little ambition about incentive programs
Avoid Responsibility
Need to be driven through control systems

Manager adopting Theory X believes in


Everything ends in blame

In blaming without evaluating the situation

That it is their job to structure the work and energize the employee

Authoritarian style based on threat of punishment

Examples of Theory X
Prevelant in 19th century worker-managemant relationships
Slavery
Workers are no better than cattle
Caste Systems
Worst jobs to the least educated

X may cause stress to the employees because the


manager may be using harsh threats and
unpleasant tones in order to achieve the overall
goal.
It also may not give the employees a chance to take
any initiative because the manager is always telling
them what to do before they have a chance to figure
it out on their own.

What is the Y Theory of


Management?

Theory Y
Theory Y is based on a
completely different
assumption. It says that
employees love to work and
seek responsibilities. They
welcome change and prefer
to take an active part in
meetings, groups and
decision-making processes.

Mencius is a Chinese thinker born


around 2400 years ago.
Across the border of country and
time, McGregor and Mencius got a
consensus on Man's nature at
birth is good.
He believes that the nature of
people is like the water, water flows
downwards, and everyone is born
good. Water cannot flows upwards
without external force, people will
not behave evil without external
pressure.

McGregors Theory Y believes people like


to perform well and are motivated by the
sense of achievement and self-motivated.
So in order to further motivate such
employees. Theory Y suggests that the
management should focus on creating a
helpful and vibrant organizational
structure. That organizational structure
and environment should not only
stimulate creativity and positive energies,
but also it should encourage open
communication, innovation, participative
roles and recognition.

Montgomery in
Atlantic Ocean
MacArthur in Pacific
Marshall is over there
picking balls for me."

The Example of Theory Y


The famous General Eisenhower
is the commander of Allied
forces during World War II.
The Normandy Campaign, also
known as D day.
He understand to authorize
the rights to the subordinates
and get themselves motivated.

Theory Y is very suitable for


the job which requires high
risk, high technology and high
creativity, like google,
Microsoft. Thats the reason
why these companies offer the
very high welfare.

What is the Z
Theory of
Management?

Theory Z is an approach to management that


advocates matching the organizations culture to that
of the larger society and assumes that involved
workers are the key to increased productivity.

I do not
understand

In other words, the values of


certain cultures affect the way
the employees work, and
therefore, those values should
be taken into consideration
when managing employees of a
certain business.

Three
things theory Z promotes

Stable employment
High productivity
High morale and satisfaction

7 Features:
Long-Term Employment
Consensual Decision Making
Individual Responsibility
Slow Evaluation AND Promotion
Informal Control with Formalized Measures
Moderately Specialized Career Path
Holistic Concern

EMPLOY
ER

Another part of this


theory is that Theory Z
workers can be
trusted to do their
jobs using their
utmost ability, so long
as management can
be trusted to support
them.

EMPLOYE
E

If a manager doesnt trust


his employees or the
employees dont trust the
manager, this theory
becomes nonexistent..

Theory Z Companies

Ma
nag
em
ent
Con
cep
t
Mot
ivat
ion

Lea
der
shi
p

Douglas
McGregor
(Theory X &
Y)

William
Ouchi
(Theory Z)

Classify people
as either being
unwilling to
work, or being
self motivated
towards work.
Threats and
disciplinary
action are
thought to be
used more
effectively in
this situation

Believes
that people
are innately
self
motivated
to not only
do their
work, but
also are
loyal
towards the
company.

Theory X
leaders would
be more
authoritarian,
Theory Y
leaders would
be more

Theory Z
managers
would have
to have a
great deal
of trust that
their

Case study 1:
Mrs Thomas, a community nurse with 5 years experience, from another
health center wants to develop a teenage health education programme.
Permission is denied from her immediate new supervisor. Her previous
supervisor accepted changes and new ideas from juniors. She is
thinking of transferring to another facility with more autonomy although
she feels she can make a difference if given the opportunity to do so.

1. Discuss the type of management theory under


which Mrs Thomas is operating.
2. How can Mrs.Thomas approach this problem?

Case Study 2:
Samsung satisfies the following
management characteristics
The length of employment is neither short-termed nor lifetime
The organization culture values a collective approach, not individualization,
regarding mode of decision making.
Responsibility is assumed by the individual
The frequency of employee evaluation is low
The control depends on both implicit-informal and explicit-formal measures
The career path is moderately specialized

Which Theory do it satisfy?

Conclusion
Which one would I choose?
I want to be a Theory Y manager and Theory Y Employee.

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