Management Theory of Douglas McGregor - Theory X and Theory Y

Business Studies

Motivation Theories/ Management Theories

Management Theory of Douglas McGregor - Theory X and Theory Y

McGregor’s theories define about the attitudes of managers and workers, as well as how workers are perceived by management, and how workers perceive their role in the company. He identified two styles of management, which he called Theory X and Theory Y. These theories put forward to the managers, not the workers.

Theory X basically holds the belief of autocratic managers that their employees has in inherent dislike for work and will avoid it if possible. These managers like to retain most of their power and authority, by making decisions on their own, then instructs their employees to carry out the work task. They often describe as “authoritative”, because they act as “authorities”. This type of manager places great deal of concern on the accomplishment of the work, whilst much less concern for the worker’s opinions/attitudes toward the manager’s decision. This is like self-fulfilling, as the managers give less opportunities for the employees to participate, the employees will probably lead to decrease of work motivation. It is held that employees will end up only respond to monetary rewards, their payment. This would lead to lose of ground in the work place for the managers.

Theory X managers also believe that their employees need some kind of direct pressure and control in order to get them work effectively. This turns out to be wrong because man actually needs more than financial rewards at work, he also needs some deeper higher order motivation in order to fulfill himself. Theory X managers should give their employees more chances to share their opinions, i.e. having decision making with the group members.

Theory Y management situation, it’s often found that the relationship between managers and workers are more popular view, which explains the concepts of Theory Y. Theory Y managers believe that their employees are creative, eager/enjoy to work and that they want to contribute ideas and effort. These managers are also known as “participative managers”, because they more likely to involve employees in decisions and give them more responsibilities which takes part in the business. A participative manager’s leadership style is often defined in two styles, democratic and consensual. A democratic leader would allow their employees to vote on decisions, whereas ...

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Employees managed by participative managers were much more capable of excising self-control and self-direction if they are motivated to achieve goal, and are often seeks for responsibility rather than only accepting it. They are also far more prevalent in the work place. For instance, their ingenuity, creativity, and imagination result increasingly present throughout the ranks of the working population.

Motivation Theory of Abraham Maslow

Maslow believes that most of the people want more than they have; they are always not satisfied with what they have. As one desire is satisfied, another need would be find, which just pops up in its place. Most human beings would just keep on wanting more until reaches to a point, where all needs are met. Maslow pointed out that there’re only 2% of people in this world who can reach up to that point. Even though most of the people want to satisfy themselves more, the basic needs must be satisfied until they reach to another need.

Maslow sees that human beings' needs should be arranged like a ladder. He took the idea above and created the hierarchy of needs. He laid out five broader layers: the physiological needs, the needs for safety and security, the needs for love and belonging, the needs for esteem, and the need to actualize the self, which is in the order of importance of these basic needs. In the ladder he laid out, he shows that the basic needs (physical needs) are most important, which must be satisfied first. He also pointed out that unfulfilled needs lower on the ladder would inhibit the person from climbing to the next step.

The Physiological needs. This is the basic needs for living, which includes oxygen water, protein, salt, sugar, calcium, and other minerals and vitamins. They are also known as the “Biological necessities”. Also includes the needs to be active, to rest, and to sleep. These needs are the strongest because a person needs to have the factors above in order to survive. This is involving with good payment, and good environment for working.
The safety and security needs. When physiological needs are reached, the second need comes into place, which interested the employees in finding the safe circumstances, stability, and protection.
The love and belonging needs. When the both satisfaction are reached, this layer would start to show up. Employees might begin to feel the needs of friendships, affectionate relationships in general, or even a sense of community. But if they are too concerns about this, they might end up with increasing susceptible to loneliness and social anxieties.
The esteem needs. Maslow put it into 2 versions of esteem needs, a lower one and a higher one. The lower one is the need for respects for others, whereas the higher one requires self-respect, which includes the sense of confidence, achievement, independent, and freedom. This is known as the higher form because once you have self control, it’s unlikely to lose. Basically, this is the need to feel valuable.
Self-actualization needs. This is the level, when employees satisfy all their needs, including the 4 needs above. For business implication, it would provides employees the opportunities for developing new skills, scope to meet challenges and room to perform incentive and creativity. Basically it introduces new task to employees, and gives satisfaction of innermost desire, to achieve your desires.