Saturday 22 June 2013

Day 2- X and Y "ka funda" in Management

So I hope you guyz now expecting something valuable from me. But first of all let me thank all of you who read my blog wasting few valuable times of their life.
And here is my second shot. The second class that I have attended of Prof. Mandi & without any doubt it was also full of fun and lessons of LIFE.
So what's X and Y?We all have heard about them as variables in Algebra or as types of Chromosomes in Biology.But here I would be referring to "McGregor's XY Theory".

douglas mcgregor - theory x y

Douglas McGregor's XY Theory, managing an X Theory boss, and William Ouchi's Theory Z

Douglas McGregor, an American social psychologist, proposed his famous X-Y theory in his 1960 book 'The Human Side Of Enterprise'. Theory x and theory y are still referred to commonly in the field of management and motivation, and whilst more recent studies have questioned the rigidity of the model, Mcgregor's X-Y Theory remains a valid basic principle from which to develop positive management style and techniques. McGregor's XY Theory remains central to organizational development, and to improving organizational culture.
McGregor's X-Y theory is a salutary and simple reminder of the natural rules for managing people, which under the pressure of day-to-day business are all too easily forgotten.
McGregor's ideas suggest that there are two fundamental approaches to managing people. Many managers tend towards theory x, and generally get poor results. Enlightened managers use theory y, which produces better performance and results, and allows people to grow and develop.
McGregor's ideas significantly relate to modern understanding of the Psychological Contract, which provides many ways to appreciate the unhelpful nature of X-Theory leadership, and the useful constructive beneficial nature of Y-Theory leadership.

Understanding the Theories

Your management style is strongly influenced by your beliefs and assumptions about what motivates members of your team: If you believe that team members dislike work, you will tend towards an authoritarian style of management; On the other hand, if you assume that employees take pride in doing a good job, you will tend to adopt a more participative style.

Theory X

Theory X assumes that employees are naturally unmotivated and dislike working, and this encourages an authoritarian style of management. According to this view, management must actively intervene to get things done. This style of management assumes that workers:
  • Dislike working.
  • Avoid responsibility and need to be directed.
  • Have to be controlled, forced, and threatened to deliver what's needed.
  • Need to be supervised at every step, with controls put in place.
  • Need to be enticed to produce results; otherwise they have no ambition or incentive to work.
X-Type organizations tend to be top heavy, with managers and supervisors required at every step to control workers. There is little delegation of authority and control remains firmly centralized.
McGregor recognized that X-Type workers are in fact usually the minority, and yet in mass organizations, such as large scale production environment, X Theory management may be required and can be unavoidable.

Theory Y

Theory Y expounds a participative style of management that is de-centralized. It assumes that employees are happy to work, are self-motivated and creative, and enjoy working with greater responsibility. It assumes that workers:
  • Take responsibility and are motivated to fulfill the goals they are given.
  • Seek and accept responsibility and do not need much direction.
  • Consider work as a natural part of life and solve work problems imaginatively.
This more participative management style tends to be more widely applicable. In Y-Type organizations, people at lower levels of the organization are involved in decision making and have more responsibility.



Comparing Theory X and Theory Y

  • Motivation
    Theory X assumes that people dislike work; they want to avoid it and do not want to take responsibility. Theory Y assumes that people are self-motivated, and thrive on responsibility.
  • Management Style and Control
    In a Theory X organization, management is authoritarian, and centralized control is retained, whilst in Theory Y, the management style is participative: Management involves employees in decision making, but retains power to implement decisions.
  • Work Organization
    Theory X employees tend to have specialized and often repetitive work. In Theory Y, the work tends to be organized around wider areas of skill or knowledge; Employees are also encouraged to develop expertise and make suggestions and improvements.
  • Rewards and Appraisals
    Theory X organizations work on a ‘carrot and stick’ basis, and performance appraisal is part of the overall mechanisms of control and remuneration. In Theory Y organizations, appraisal is also regular and important, but is usually a separate mechanism from organizational controls. Theory Y organizations also give employees frequent opportunities for promotion.
  • Application 
    Although Theory X management style is widely accepted as inferior to others, it has its place in large scale production operation and unskilled production-line work. Many of the principles of Theory Y are widely adopted by types of organization that value and encourage participation. Theory Y-style management is suited to knowledge work and professional services. Professional service organizations naturally evolve Theory Y-type practices by the nature of their work; Even highly structure knowledge work, such as call center operations, can benefits from Theory Y principles to encourage knowledge sharing and continuous improvement.Theory X and 

    Theory Y relate to 
    Maslow's hierarchy of needs in how human behavior and motivation are main priorities in the workplace in order to maximize output. In relation to Theory Y, the organization is trying to create the most symbiotic relationship between the managers and workers, which relates to Maslow's needs for self-actualization and Esteem. For self-actualization, the manager promotes the optimum workplace through morality, creativity, spontaneity, problem solving, lack (or minimization) of the effects of prejudice, and acceptance of facts. We must accept that prejudice exists in others, even as we try to minimize it in ourselves. These issues relate to Esteem when the manager is trying to promote each team member's self-esteem, confidence, achievement,happiness, respect of others, and respect by others.

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