McGregor Theory of leadership: Theory X & Theory Y
Introduction
It can be observed that in 1960 McGregor introduced two roles of individual behavior with the help of Theory Y and Theory X. According to him theory X is negative and theory Y is positive. These two theories help the managers of the organizations to see the perception of the employees on the basis of various assumptions (Adair, 1993)
Definition of theory Y
It is observed that according to McGregor Theory Y is to create the potential among employees and to realize them their potential towards achievement of the common goal.
Definition of theory X
It is observed that, theory X has developed the view that employees at organizations show inherent detest for work and work can be done by the organizations through the employees with the help of coercive methods and pressure. The researchers have analyzed that theory X is work oriented than employee oriented.
Assumptions of theory X
The first assumption of theory X is that on an average employee of the organizations does not like work and try to run away whenever it is possible.
The second assumption of theory X is that employees do not show their willingness to work unless they are compelled, coerced and punished by organizations to achieve the goal of the business of the organizations (Bass, 1990)
The third assumption of the theory X is that employees started to give preference to job security and they show little or no aspiration towards achievement of the goal of the organization.
The fourth assumption of the theory X is that employees do not show any interest for responsibilities posed by the mangers of the organizations and they try to run away whenever it is possible.
The fifth assumption of theory X is that employees show reluctance to changes that take place in the organizations due to changes in the business environment.
Assumptions of theory Y
The first assumption of theory Y is that employees recognize their work as relaxing and stable and they use their mental and physical levels to achieve the work in organizations.
The second assumption of theory Y is that employees do not require pressure and coercion to complete the work. It is observed that in theory Y employees’ use self direction and control to fulfill the goal of the organizations.
The third assumption of theory Y is that if job provides satisfaction and rewards to the employees then it results in reliability and dedication to the organizations.
The fourth assumption of theory Y is that on an average employee wants to admit and accept the responsibilities of the organizations.
The fifth assumption of theory Y is that employees have knowledge and skills which must be utilized fully to solve organizational problems.
Implications of Theory X and Theory Y
It is observed that today very few organizations use theory X. Theory X involves the use of stiff control and direction which reveals that employees are rigid to changes of the organizations and therefore theory X does not result in innovation (Adair, 1993)
It is observed that theory Y reveals that managers of the organizations should create a work environment which gives a chance to employees to take action for fulfillment of the goal. Theory Y motivates decentralization of responsibilities and authorities. Theory Y helps the employees in finding the way through which they can make considerable contributions to the organizations. The major point of theory Y is to match the employee’s needs and wants with organizational wants and needs.
In the 21st century organizations get to know what motivates the employees to become a leader as compared to past. The researchers had analyzed that McGregor Theory X and Y came in the world at a point of nominal unemployment, rising economies and when world was facing very little competition from East and South Asia (Adair, 1993)
It is observed that organizations get to know it is not relevant to coerce and pressurize employees to get the work done. It is analyzed by the organizations employees who become a leader on their own will contribute more loyalty and contribution to the organizational vision and mission.
The relevance of theory Y is that it helps the managers of the organizations to create an environment where employees can use their potential to achieve organizational vision and mission. According to theory Y employees who become a leader on their own will show more productivity and contribute more to organizations. Theory Y is more employees centered where employees are respected and motivated. If organizations give more respect and value to the employees then they would do their best in fulfillment of the organizational goal. In the case of theory X employees want to be directed from managers rather than accepting responsibilities and they always try to run away from the work whenever it is possible. According to theory X employees are sluggish, lack of self direction and shows dependant working behavior (Bass, 1990)
Theory Y helps organizations in the delegation of authority and responsibility, enlargement in jobs and appraisals of the performance of the employees.
Conclusion
McGregor theory X and theory Y help the organizations to know what should be done to get the work done from the employees. According to McGregor theory X is a negative one and theory Y is a positive one. The various assumptions are there in theory X and Theory Y. The assumptions of theory X show that employees dislike the work and try to escape from the work whenever it is possible. The assumptions of theory Y shows that employees want responsibility, authority and think organizational goal as their goal. According to theory Y managers of the organizations provide an environment to employees where they can use their capabilities and skills to achieve organizational goal. In the 21st century organizations get to know that it is not relevant to get the work done with the help of coercion and pressure. To achieve more transparency and accuracy organizations started to give more preference to employees to get work done from them (Bass, 1996)
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