In 1935, he received a PhD degree from Harvard University in Experimental Psychology. McGregor was a brilliant student at Harvard that; he achieved an A grade in every course.
After his graduation from Harvard University, he became a Professor of Psychology and taught there for almost two years. McGregor left his job to work at Antioch, as a Professor of Psychology and Executive Director of the Industrial Relations Section of M.I.T.
At M.I.T., McGregor spent two thirds of his time at teaching and as an Executive Director of the Industrial Relations Section. He spent one third of his time as a consultant. Between 1943 and 1945, he had left M.I.T to work at Dewey Almy Company, which manufactures rubber goods. He was a Director of Industrial Relations in that institution. Since 1940, he has been a consultant in human relations for that industry.
The general manager of Dewey Almy Company stated that McGregor liked to explore and experiment in human relations with the company. The company offered McGregor a free-hand in determining its industrial relations policy because; many of his experiments became very successful. The business and the workmen have full confidence in him.
For many years, McGregor worked as a consultant for several industries and labour undone in the East and Middle West. He has taken care of the wage and salary administration, contract negotiation, foreman training, grievance handling, executive development programs, union and management co-operation programs and problems of organisational structure and function.
He has been a member of the panel of arbitration of the American Arbitration and tree labour disputes for various companies and union. McGregor has been a speaker for management and labour groups in United States and Canada. Also, he has been in charge of conferences on human relations for small group of best executives in most well-known companies.
Theory X and Theory Y
In 1960’s, Douglas McGregor wrote a book called, The Human Side of Enterprise. In his book, McGregor explained that he researched on individual’s behaviour at work, and he developed two theories: Theory X and Theory Y. He discovered these two theories when, he interviewed several managers and asked them, what their opinions are on employees’ behaviour at work.
Theory X
Theory X managers believe that employees:-
- are only motivated by pay
- are lazy
- has lack of ambition
- do not accept responsibility
- are self-centred
- do not like changes
- are gullible and not very bright
Theory X employees need to be controlled, directed and threatened with punishment, if necessary to make them work. However, this can cause stress on employees.
As a result, Theory X communication style is quick and orderly. However, if employees do not respond or deliver the items, they can be responsible for inattention, lack of interest and unreliability.
Theory Y
Theory Y managers believe that employees:-
- are energetic
- are ambitious
- seek responsibility
- can be selfless
- want to contribute to business growth and changes
- are intelligent
- finds natural as play or rest
As a result, Theory Y employees are cable and willing to organise, control and direct themselves, and to accept authority and responsibility.
However, Theory Y managers need to be more sensitive, they have to do the following:-
- Take the time out to explain
- Understand the needs of the individual
- Engage in joint-problem solving and interpersonal exchange with each member of staff
McGregor’s work was slightly similar to Maslow’s theory and Hertzberg’s theory but, he looked at management styles as well as motivation.
McGregor’s analysis shows that employers (managers) should treat their employees as individuals. He believes that organisation will become more successful if managers subscribe to Theory Y than Theory X.
McGregor suggested that Theory X workers can only become motivated if, they achieve their business’ objectives. He suggested that managers should offer challenges such as complex tasks so; they can show and develop their creativity.
He reckons that, employees will contribute more to the organisation if, managers use some of his theories.