However, neither of these extremes is optimal. As a result, they think that team members need to be prompted, rewarded or punished constantly to make sure that they complete their tasks. About 1015 years ago, power and leadership once again shifted, this time to people with finance and legal backgrounds, because the critical contingencies facing many organizations were mergers, acquisitions, hostile takeovers, and creative financing. Some critics believe that current methods of measuring unemployment are inaccurate in terms of the impact of unemployment on people as these methods do not take into account the 1.5% of the available working population incarcerated in US prisons (who may or may not be working while they are incarcerated); those who have lost their jobs and have . French and Raven provide us with a useful typology that identifies the sources and types of power that may be at the disposal of leaders: Not all forms of power are equally effective (see Exhibit 13.5), nor is a leaders total power base the simple sum of the powers at his disposal. The two theories divide employees; those that inherently dislike work and those that inherently do like work. The higher-level needs of esteem and self-actualization are ongoingneeds that, for most people, are never completely satisfied. Management believes employees' work is based on their own self-interest. Leonard Bernstein was part of the symphony, but his role as the New York Philharmonic conductor differed dramatically from that of the other symphony members. Work is inherently distasteful to most people, and they will attempt to avoid work whenever possible. Most people have little aptitude for creativity in solving organizational problems. The control and coercion involved in this style of management could lead to employee frustration, de-motivate employees and damage relationships within the organization. The theory X and Y leadership model was developed 50 years ago and has been validated by modern research. Here, managers see employees as lazy and not proactive towards their work. D.job satisfaction is primarily related to higher order needs. the average person dislikes work and will seek to avoid it when possible. Overall leader effectiveness will be higher when people follow because they want to follow. Question: QUESTION 17 Theory X managers are likely to believe that: a. the average employee dislikes work and will seek to avoid it when possible. The Theory Y manager generally believes employees want responsibility and will perform up to expectations if given clear direction and goals. [1] McGregor's work was rooted in motivation theory alongside the works of Abraham Maslow, who created the hierarchy of needs. The Theory Y manager assumes that employees accept work as a normal part of their day right next to recreation and rest. Theory Y managers assume employees are internally motivated, enjoy their job, and work to better themselves without a direct reward in return. However, because there is no optimal way for a manager to choose between adopting either Theory X or Theory Y, it is likely that a manager will need to adopt both approaches depending on the evolving circumstances and levels of internal and external locus of control throughout the workplace. b. most employees know more about their job than the boss. Organizations that use self-managed work teams allow members of the team to select the individual who will serve as their team leader. Emergent leaders, on the other hand, arise from the dynamics and processes that unfold within and among a group of individuals as they endeavor to achieve a collective goal. https://openstax.org/books/principles-management/pages/1-introduction, https://openstax.org/books/principles-management/pages/13-3-leader-emergence, Creative Commons Attribution 4.0 International License. Learn about motivation in the workplace . While there is a more personal and individualistic feel, this leaves room for error in terms of consistency and uniformity. A manager who believes in Theory Y could have assumptions that: Too much freedom could lead to no accountability and people could lose direction and focus. On the other hand, more modern, network-centric, and decentralized concepts of C2, that rely on individual initiative and self-synchronization, tend to arise more from a "Theory Y" philosophy. As a result, the only way that employees can attempt to meet higher-level needs at work is to seek more compensation, so, predictably, they focus on monetary rewards. The two theories proposed by McGregor describe contrasting models of workforce motivation applied by managers in human resource management, organizational behavior, organizational communication and organizational development. During the 1980s, American business and industry experienceda tsunami of demand for Japanese products and imports, particularly in the automotive industry. We recommend using a And the approach to and requirements of leadership are changing with it. He mentioned Theory X and Theory Y in his book, The Human Side of Enterprise, published in 1960. So grab your bomb repellent while we explore these two different types of managers by discussing the assumptions of each. [7] Implementing a system that is too soft could result in an entitled, low-output workforce. It is to McGregors thorough research and curiosity in behavior and incentive that we owe our current understanding of Theory X and Theory Y. As a result, they must be closely controlled and often coerced to achieve organizational objectives. C.employees are motivated mainly by the chance for advancement and recognition.D.job satisfaction is primarily related to higher-order needs. Finally, the permissive democrat shares power with group members, soliciting involvement in both decision-making and execution. Where a typical Theory X manager might require strict work hours, a Theory Y manager might offer employees a firm deadline, trusting them with the choice of when and how they will meet a productivity deadline. Power, then, essentially answers the how question: How do leaders influence their followers? His ideas suggest that there are two fundamental approaches to managing people: Many managers tend toward Theory X and generally get poor results. Hence, both theories used in moderation are key to good organization. workers must be controlled in order to achieve a company's goalsb. People come to leadership positions through two dynamics. Much like a bomb, assumptions are a dangerous thing to make - just the slightest little mistake and you can end up blowing yourself up! Social or (interpersonal) influence is ones ability to effect a change in the motivation, attitudes, and/or behaviors of others. are licensed under a, Major Characteristics of the Manager's Job, How the Brain Processes Information to Make Decisions: Reflective and Reactive Systems, Administrative and Bureaucratic Management, External and Internal Organizational Environments and Corporate Culture, The Internal Organization and External Environments, Organizing for Change in the 21st Century, Ethics, Corporate Responsibility, and Sustainability, Dimensions of Ethics: The Individual Level, Ethical Principles and Responsible Decision-Making, Leadership: Ethics at the Organizational Level, Ethics, Corporate Culture, and Compliance, Emerging Trends in Ethics, CSR, and Compliance, Cultural Stereotyping and Social Institutions, Characteristics of Successful Entrepreneurs, Trends in Entrepreneurship and Small-Business Ownership, Strategic Analysis: Understanding a Firms Competitive Environment, Gaining Advantages by Understanding the Competitive Environment, A Firm's External Macro Environment: PESTEL, A Firm's Micro Environment: Porter's Five Forces, Competition, Strategy, and Competitive Advantage, The Strategic Management Process: Achieving and Sustaining Competitive Advantage, The Role of Strategic Analysis in Formulating a Strategy, Strategic Objectives and Levels of Strategy, Planning Firm Actions to Implement Strategies, Measuring and Evaluating Strategic Performance, An Introduction to Human Resource Management, Influencing Employee Performance and Motivation, Talent Development and Succession Planning, Benefits and Challenges of Workplace Diversity, Situational (Contingency) Approaches to Leadership, Substitutes for and Neutralizers of Leadership, Transformational, Visionary, and Charismatic Leadership, Opportunities and Challenges to Team Building, Factors Affecting Communications and the Roles of Managers, Managerial Communication and Corporate Reputation, The Major Channels of Management Communication Are Talking, Listening, Reading, and Writing, Formal Organizational Planning in Practice, Management by Objectives: A Planning and Control Technique, The Control- and Involvement-Oriented Approaches to Planning and Controlling, MTIIts Importance Now and In the Future, External Sources of Technology and Innovation, Internal Sources of Technology and Innovation, Management Entrepreneurship Skills for Technology and Innovation, Managing Now for Future Technology and Innovation, Tannenbaum and Schmidts Leadership Continuum, Leadership Behavior and the Uses of Power. We refer to this person as the designated leader (in this instance the designated and formal leader are the same person). The soft approach, however, is to be permissive and seek harmony in the hopes that, in return, employees will cooperate when asked. In general, Theory X style managers believe their employees are less intelligent, lazier, and work solely for a sustainable income. [4] McGregor's perspective places the responsibility for performance on managers as well as subordinates.[5]. B.most employees know more about their job than the boss. CRC Press; New York; pp. Under Theory Z management, not only do workers have a sense of cohesion with their fellow workers, they also develop a sense of order, discipline, and a moral obligation to work hard. Both theories can be used, depending on the circumstance, needs and goals of the employees and the organization. Managers who choose the Theory X approach have an authoritarian style of management. This judgement could say a lot about your style of management. If you agree with Riya, you will likely agree with Theory Y, which refers to a more participative style of managing. Accountability from employees is needed (Theory X) and flexibility and creativity is needed as well (Theory Y). McGregor called this Theory X. B.most employees know more about their job than the boss. If you agree with Joseph, you will likely agree with Theory X, which refers to a more authoritarian style of managing. They are not inherently irresponsible or lazy. Why were U.S. consumers clambering forcars, televisions, stereos, and electronics fromJapan? "C2 Re-Envisioned: the Future of the Enterprise." In the 1960s, social psychologist Douglas McGregor developed Theory X and Theory Y to explain how managers' beliefs about what motivates their employees can influence their management style. As an Amazon Associate we earn from qualifying purchases. They do not always need coercion, incentives or force to complete their work. Gerald Salancik and Jeffrey Pfeffer observe that power to influence others flows to those individuals who possess the critical and scarce resources (often knowledge and expertise) that a group needs to overcome a major problem.24 They note that the dominant coalition and leadership in American corporations during the 1950s was among engineers, because organizations were engaged in competition based on product design. The rationale for the drawn-out time frame is that it helps develop a more dedicated, loyal, and permanent workforce, which benefits the company; the employees, meanwhile, have the opportunity to fully develop their careers at one company. Called this Theory X. b.most employees know more about their job than the boss will serve as their leader... Your style of management is needed ( Theory X style managers believe their employees are less intelligent, lazier and... 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