Agriculture Reference
In-Depth Information
managerial effectiveness. We will review two here: Theory X and Theory Y, and manage-
ment by objectives (MBO).
Theory X, Theory Y
Douglas McGregor suggested a dual theory about human behavior in business that has
important implications for management style and methods of motivation. McGregor based
his theory on what has come to be known as the “dual nature of humankind.” For centuries,
philosophers have noted that people have the capacity for love, warmth, kindness, and sym-
pathy, but at the same time can exhibit hate, harshness, and cruelty. This dichotomy led
McGregor to an explanation of management style that is based on assumptions managers
make about the people they supervise. McGregor referred to his dual theories as
Theory X
and
Theory Y
.
Theory X
McGregor believed that traditional management practices and methods are based on the fol-
lowing set of assumptions about employees:
1.
Most employees have an inherent dislike for work, and will avoid it if at all possible.
2.
People will work only when they are coerced, threatened, or at least controlled in all
their activities.
3.
Most people actually prefer to be closely controlled because they dislike responsibility
and have little ambition.
4.
Most people are basically self-centered and selfi sh.
5.
Security is very important to most employees, and they are threatened by change.
6.
Most employees are gullible, will believe anything, and are not very intelligent.
McGregor believed that for centuries these assumptions had served as the basis for most
management and leadership styles: strong control with little concern for employee needs.
Most of the supervisory practices resulting from Theory X assumptions have failed to tap the
human resource potential in the employees being supervised.
Theory Y
At the other end of the continuum is another set of assumptions derived from a belief in
the natural goodness and creativity of human beings. Theory Y assumptions include the
following:
1.
Work, both physical and mental, is as natural as play or rest.
2.
People can and will exercise self-control and evidence motivation to achieve goals to
which they are personally committed.
3.
The level of commitment is dependent on the rewards received for reaching the goals.
4.
People basically like responsibility and will seek it.
5.
People are naturally creative and have far more capability than is generally utilized.
Theory Y assumptions lead to a very different management and leadership style. Theory Y
managers focus attention on employees themselves, attempt to draw out their creativity, and
