Theory X

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• Theory X
• and
• Theory Y
• -D. McGregor
• Dr. Jones

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Theory X

• The traditional view of direction and control.

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• Behind every managerial decision or action are
  assumptions about human nature and human behavior.

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ASSUMPTIONS

• 1. The average human being has an inherent
  dislike of work and will avoid it if he can.
• 2. Because of this human characteristic of
  dislike of work, most people must be coerced,
  controlled, directed, threatened with punishment
  to get them to put forth adequate effort toward
  the achievement of organizational objectives.

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• The dislike of work is so strong that even the
  promise of rewards is generally not strong enough
  to overcome it. People will accept the rewards
  and demand continually higher ones, but these
  alone will not produce the necessary effort. Only
  the threat of punishment will do the trick.
• The underlying assumption is that people will
  only work under external coercion and control.

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• 3. The average human being prefers to be
  directed, wishes to avoid responsibility, has
  relatively little ambition, wants security above
  all.

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• These set of assumptions are referred to as
  Theory X.
• According to D. McGregor, Theory X provides an
  explanation of some human behavior in industry.

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Theory Y

• The integration of individual and organizational
  needs.

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ASSUMPTIONS

• 1. The expenditure of physical and mental effort
  in work is as natural as pay or rest. The average
  human being does not inherently dislike work.
  Depending upon controllable conditions, work may
  be a source of satisfaction (and will be
  voluntarily performed) or a source of punishment
  (and will be avoided if possible).

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• 2. External control and the threat of punishment
  are not the only means for bringing about effort
  toward organizational objectives. Man will
  exercise self-direction and self-control in the
  service of objectives to which he is committed.

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• 3. Commitment to objectives is a function of the
  rewards associated with their achievement. The
  most significant of such rewards, e.g., the
  satisfaction of ego and self-actualization needs,
  can be direct products of effort directed toward
  organizational objectives.

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• 4. The average human being learns, under proper
  conditions, not only to accept but to seek
  responsibility.
• 5. The capacity to exercise a relatively high
  degree of imagination, ingenuity and creatively
  in the solution of organizational problems is
  widely, not narrowly, distributed in the
  population.

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• 6. Under the conditions of modern industrial
  life, the intellectual potentialities of the
  average human being are only partially utilized.

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• Theory Y and Theory X have very different
  assumptions.

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• The central principle which derives from Theory X
  is that of direction and control through exercise
  of authority.
• The central principle which derives from Theory Y
  is that of integration the creation of
  conditions such that the members of the
  organization can achieve their own goals best by
  directing their efforts toward the success of the
  enterprise.