Theory X and Theory Y
Theory X and Theory Y
Theory X and Theory Y
In his 1960 management book, The Human Side of Enterprise, Douglas McGregor made his
mark on the history of organizational management and motivational psychology when he
proposed the two theories by which managers perceive employee motivation. He referred to
these opposing motivational methods as Theory X and Theory Y management. Each assumes
that the manager's role is to organize resources, including people, to best benefit the company.
However, beyond this commonality, they're quite dissimilar.
Theory X Management
According to McGregor, Theory X leadership assumes the following:
• Work is inherently distasteful to most people, and they will attempt to avoid
work whenever possible.
• Most people are not ambitious, have little desire for responsibility, and prefer
to be directed.
• Most people have little aptitude for creativity in solving organizational
problems.
• Motivation occurs only at the physiological and security levels of Maslow's
Needs Hierarchy.
• Most people are self-centered. As a result, they must be closely controlled
and often coerced to achieve organizational objectives
• Most people resist change.
• Most people are gullible and unintelligent.
Essentially, theory x assumes that the primary source of most employee motivation is monetary,
with security as a strong second.
The Hard Approach and Soft Approach
Under Theory X, management approaches to motivation range from a hard approach to a soft
approach.
The hard approach to motivation relies on coercion, implicit threats, micromanagement, and tight
controls -- essentially an environment of command and control. The soft approach, however, is
to be permissive and seek harmony in the hopes that, in return, employees will cooperate when
asked. However, neither of these extremes is optimal. The hard approach results in hostility,
purposely low-output, and extreme union demands. The soft approach results in increasing desire
for greater reward in exchange for diminishing work output.
It would appear that the optimal approach to human resource management would be lie
somewhere between these extremes. However, McGregor asserts that neither approach is
appropriate since the foundations of theory x are incorrect.
The Problem with X Theory
Drawing on Maslow's Hierarchy of Needs, McGregor argues that a need, once satisfied, no
longer motivates. The company relies on monetary rewards and benefits to satisfy employees'
lower level needs. Once those needs have been satisfied, the motivation is gone. This
management style, in fact, hinders the satisfaction of higher-level needs. Consequently, the only
way that employees can attempt to satisfy higher level needs at work is to seek more
compensation, so it is quite predictable that they will focus on monetary rewards. While money
may not be the most effective way to self-fulfillment, it may be the only way available. People
will use work to satisfy their lower needs, and seek to satisfy their higher needs during their
leisure time. Unfortunately, employees can be most productive when their work goals align with
their higher level needs.
McGregor makes the point that a command and control environment is not effective because it
relies on lower needs for motivation, but in modern society those needs are mostly satisfied and
thus no longer motivate. In this situation, one would expect employees to dislike their work,
avoid responsibility, have no interest in organizational goals, resist change, etc., thus creating a
self-fulfilling prophecy. To McGregor, motivation seemed more likely with the Theory Y model.
Theory Y
The higher-level needs of esteem and self-actualization are continuing needs in that they are
never completely satisfied. As such, it is these higher-level needs through which employees can
best be motivated.
In strong contrast to Theory X, Theory Y leadership makes the following general assumptions:
• Work can be as natural as play if the conditions are favorable.
• People will be self-directed and creative to meet their work and
organizational objectives if they are committed to them.
• People will be committed to their quality and productivity objectives if
rewards are in place that address higher needs such as self-fulfillment.
• The capacity for creativity spreads throughout organizations.
• Most people can handle responsibility because creativity and ingenuity are
common in the population.
• Under these conditions, people will seek responsibility.
Under these assumptions, there is an opportunity to align personal goals with organizational
goals by using the employee's own need for fulfillment as the motivator. McGregor stressed that
Theory Y management does not imply a soft approach.
McGregor recognized that some people may not have reached the level of maturity assumed by
Theory Y and therefore may need tighter controls that can be relaxed as the employee develops.
XY Theory Management Application - Business Implications for Workforce
Motivation
If Theory Y holds true, an organization can apply these principles of scientific management to
improve employee motivation:
• Decentralization and Delegation - If firms decentralize control and reduce the
number of levels of management, managers will have more subordinates and
consequently will be forced to delegate some responsibility and decision
making to them.
• Job Enlargement - Broadening the scope of an employee's job adds variety
and opportunities to satisfy ego needs.
• Participative Management - Consulting employees in the decision making
process taps their creative capacity and provides them with some control
over their work environment.
• Performance Appraisals - Having the employee set objectives and participate
in the process of evaluating how well they were met.
If properly implemented, such an environment would result in a high level of workforce
motivation as employees work to satisfy their higher level personal needs through their jobs.
In his 1960 book, The Human Side of Enterprise, Douglas McGregor proposed two theories by
which to view employee motivation. He avoided descriptive labels and simply called the theories
Theory X and Theory Y. Both of these theories begin with the premise that management's role
is to assemble the factors of production, including people, for the economic benefit of the firm.
Beyond this point, the two theories of management diverge.
Theory X
Theory X assumes that the average person:
• Dislikes work and attempts to avoid it.
• Has no ambition, wants no responsibility, and would rather follow than lead.
• Is self-centered and therefore does not care about organizational goals.
• Resists change.
• Is gullible and not particularly intelligent.
Essentially, Theory X assumes that people work only for money and security.
Theory X - The Hard Approach and Soft Approach
Under Theory X, management approaches can range from a hard approach to a soft approach.
The hard approach relies on coercion, implicit threats, close supervision, and tight controls,
essentially an environment of command and control. The soft appoach is to be permissive and
seek harmony with the hope that in return employees will cooperate when asked to do so.
However, neither of these extremes is optimal. The hard approach results in hostility, purposely
low-output, and hard-line union demands. The soft approach results in ever-increasing requests
for more rewards in exchange for ever-decreasing work output.
The optimal management approach under Theory X probably would be somewhere between
these extremes. However, McGregor asserts that neither approach is appropriate because the
assumptions of Theory X are not correct.
The Problem with Theory X
Drawing on Maslow's hierarchy, McGregor argues that a satisfied need no longer motivates.
Under Theory X the firm relies on money and benefits to satisfy employees' lower needs, and
once those needs are satisfied the source of motivation is lost. Theory X management styles in
fact hinder the satisfaction of higher-level needs. Consequently, the only way that employees can
attempt to satisfy their higher level needs in their work is by seeking more compensation, so it is
quite predictable that they will focus on monetary rewards. While money may not be the most
effective way to self-fulfillment, in a Theory X environment it may be the only way. Under
Theory X, people use work to satisfy their lower needs, and seek to satisfy their higher needs in
their leisure time. But it is in satisfying their higher needs that employees can be most
productive.
McGregor makes the point that a command and control environment is not effective because it
relies on lower needs as levers of motivation, but in modern society those needs already are
satisfied and thus no longer are motivators. In this situation, one would expect employees to
dislike their work, avoid responsibility, have no interest in organizational goals, resist change,
etc., thus making Theory X a self-fulfilling prophecy. From this reasoning, McGregor proposed
an alternative: Theory Y.
Theory Y
The higher-level needs of esteem and self-actualization are continuing needs in that they are
never completely satisfied. As such, it is these higher-level needs through which employees can
best be motivated.
Theory Y makes the following general assumptions:
• Work can be as natural as play and rest.
• People will be self-directed to meet their work objectives if they are committed to them.
• People will be committed to their objectives if rewards are in place that address higher
needs such as self-fulfillment.
• Under these conditions, people will seek responsibility.
• Most people can handle responsibility because creativity and ingenuity are common in
the population.
Under these assumptions, there is an opportunity to align personal goals with organizational
goals by using the employee's own quest for fulfillment as the motivator. McGregor stressed that
Theory Y management does not imply a soft approach.
McGregor recognized that some people may not have reached the level of maturity assumed by
Theory Y and therefore may need tighter controls that can be relaxed as the employee develops.
Theory Y Management Implications
If Theory Y holds, the firm can do many things to harness the motivational energy of its
employees:
• Decentralization and Delegation - If firms decentralize control and reduce the number of
levels of management, each manager will have more subordinates and consequently will
be forced to delegate some responsibility and decision making to them.
• Job Enlargement - Broadening the scope of an employee's job adds variety and
opportunities to satisfy ego needs.
• Participative Management - Consulting employees in the decision making process taps
their creative capacity and provides them with some control over their work environment.
• Performance Appraisals - Having the employee set objectives and participate in the
process of evaluating how well they were met.
A Theory of Human Motivation
If properly implemented, such an environment would result in a high level of motivation as
emploIn 1943, Abraham Maslow's article A Theory of Human Motivation
appeared in Psychological Review, which were further expanded upon in his book:
Toward a Psychology of Being In this article, Abraham Maslow attempted to
formulate a needs-based framework of human motivation and based upon his
clinical experiences with humans, rather than prior pyschology theories of his day
from leaders in the field of psychology such as Freud and B.F. Skinner, which were
largely theoretical or based upon animal behavior. From Maslow's theory of
motivation, modern leaders and executive managers find means of employee
motivation for the purposes of employee and workforce management. yees work to
satisfy their higher level personal needs through their jobs.
The basis of Maslow's theory of motivation is that human beings are motivated by unsatisfied
needs, and that certain lower needs need to be satisfied before higher needs can be addressed. Per
the teachings of Abraham Maslow, there are general needs (physiological, safety, love, and
esteem) which have to be fulfilled before a person is able to act unselfishly. These needs were
dubbed "deficiency needs." While a person is motivated to fulfill these basal desires, they
continue to move toward growth, and eventually self-actualization. The satisfaction of these
needs is quite healthy. while preventing their gratification makes us ill or act evilly.
As a result, for adequate workplace motivation, it is important that leadship understands which
needs are active for individual employee motivation. In this regard, Abraham Maslow's model
indicates that basic, low-level needs such as physiological requirements and safety must be
satisfied before higher-level needs such as self-fulfillment are pursued. As depicted in this
hierarchical diagram, sometimes called 'Maslow's Needs Pyramid' or 'Maslow's Needs Triangle',
when a need is satisfied it no longer motivates and the next higher need takes its place.
Self-Actualization
Esteem Needs
Social Needs
Safety Needs
Physiological Needs
An individual will act in a certain way based on the expectation that the act will be
followed by a given outcome and on the attractiveness of that outcome to the
individual.
Effort -------> Performance linkage (How hard will I have to work?)
Performance -------> Reward linkage (What is the reward?)
Attractiveness (How attractive is the reward?)
Herzberg's
If the employee perceives inequity, she/he will act to correct the inequity:
Lower productivity
Reduced quality
Increased absenteeism
Voluntary resignation.
Suggestions for Motivating the Employees
Recognize individual differences
Match people to jobs
Use goals
Individualize rewards
Link rewards to performance
Check the system for equity
Don't ignore money.
Taylor
Frederick Winslow Taylor (1856 – 1917) put forward the idea that workers are motivated mainly
by pay. His Theory of Scientific Management argued the following:
Workers do not naturally enjoy work and so need close supervision and control
Therefore managers should break down production into a series of small tasks
Workers should then be given appropriate training and tools so they can work as efficiently as
possible on one set task.
Workers are then paid according to the number of items they produce in a set period of time-
piece-rate pay.
As a result workers are encouraged to work hard and maximise their productivity.
Taylor’s methods were widely adopted as businesses saw the benefits of increased productivity
levels and lower unit costs. The most notably advocate was Henry Ford who used them to design
the first ever production line, making Ford cars. This was the start of the era of mass production.
Taylor’s approach has close links with the concept of an autocratic management style (managers
take all the decisions and simply give orders to those below them) and Macgregor’s Theory X
approach to workers (workers are viewed as lazy and wish to avoid responsibility).
However workers soon came to dislike Taylor’s approach as they were only given boring,
repetitive tasks to carry out and were being treated little better than human machines. Firms
could also afford to lay off workers as productivity levels increased. This led to an increase in
strikes and other forms of industrial action by dis-satisfied workers.
Attribution Theory
Attribution theory (Weiner, 1980, 1992) is probably the most influential
contemporary theory with implications for academic motivation. It
incorporates behavior modification in the sense that it emphasizes the idea
that learners are strongly motivated by the pleasant outcome of being able
to feel good about themselves. It incorporates cognitive theory and self-
efficacy theory in the sense that it emphasizes that learners' current self-
perceptions will strongly influence the ways in which they will interpret the
success or failure of their current efforts and hence their future tendency to
perform these same behaviors.
According to attribution theory, the explanations that people tend to make to
explain success or failure can be analyzed in terms of three sets of
characteristics:
• First, the cause of the success or failure may be internal or external.
That is, we may succeed or fail because of factors that we believe have
their origin within us or because of factors that originate in our
environment.
○ Note that this factor is distinct from the previous two categories.
An internal factor can be controllable (we can control our effort
by trying harder) or uncontrollable (most people cannot easily
change their basic intellectual ability or change from being an
introvert to being an extrovert). Likewise, an external factor can
be controllable (a person failing a difficult course could succeed
by taking an easier course) or uncontrollable (if calculus is
difficult because it is abstract, it will still be abstract no matter
what we do).
There are four factors related to attribution theory that influence motivation
in education: ability, task difficulty, effort, and luck. In terms of the
characteristics discussed previously, these four factors can be analyzed in
the following way:
Note that it is the learner's perception that determines how attributions will
influence future effort. A learner may believe that he is a "lucky person" -
and for him luck would be an internal and stable characteristic over which he
exercises little control. In other words, for this person "luck" is really what
the preceding list calls an "ability" or personality characteristic. Likewise, a
person may believe that she expended a great deal of effort, when in fact
she did not, or that an objectively easy task was difficult. The basic principle
of attribution theory as it applies to motivation is that a person's own
perceptions or attributions for success or failure determine the amount of
effort the person will expend on that activity in the future.
Students will be most persistent at academic tasks under the following
circumstances:
3. When students fail, they are most likely to persist and eventually
succeed if they attribute their failure to a lack of appropriate
effort. Therefore, it is extremely important that when students
perceive themselves as unsuccessful teachers help them develop
the conviction that they can still succeed if they give it their best
shot. (Note that it is important to define effort appropriately, as
in guideline 5.)
Performance goals, on the other hand, are set by individuals who seek to
gain favorable judgments or to avoid unfavorable judgments in the eyes of
others. People who emphasize performance goals are likely to avoid
challenges unless they are certain they can succeed, and they tend to
respond to failure with feelings of learned helplessness and self-
handicapping (Elliott & Dweck, 1988; Dweck & Leggett, 1988; Dweck, 1989),
which are discussed next. It is often undesirable to emphasize performance
goals; but schools, parents, and society often overemphasize them to the
detriment of learners.
Task they are performing. Examples include money, good grades, and other
Rewards.
because they are willing and eager to learn new material. Their learning experience is more
meaningful, and they go deeper into the subject to fully understand it. On the other hand,
extrinsically motivated students may have to be bribed to perform the same tasks.
A theorists by the name of Abraham Maslow, has concluded that before we can be
intrinsically motivated we must first satisfy some more basic human needs. According to
1. Physiological needs. We are motivated to satisfy needs that ensure our physical
survival. Needs in this group include food, water, air, shelter, clothing and sex. Most
people have satisfied their physiological needs allowing them to concentrate on higher
level needs. For some though, physiological needs are dominant and are the biggest
2. Safety needs. Once physiological needs are met one can concentrate on bringing
safety and security to our lives. Safety and security needs include, order, stability,
routine, familiarity, control over one’s life and environment, certainty and health.
3. Social needs or love and belonging needs. These needs include love, affection,
belonging and acceptance. People look for these needs in relationships with other
people and are motivated for these needs by the love from their families.
4. Esteem needs. All people have a need for stable, firmly based, usually high evaluation
of themselves for self-respect or self-esteem and for the esteem of others. These
needs may therefore be classified into two subsidiary sets. These are, first, the
independence and freedom. Second, we have what we call the desire for reputation or
prestige (defining it as respect from other people), status, fame, glory, dominance,
being able to reach their full potential a human being. Once someone has satisfied the
first four levels of needs then they have the ability to concentrate on functioning to
their highest potential. But even if all these needs are satisfied, we may often still
expect that a new discontent and restlessness will soon develop, unless the individual is
doing what they are fitted for. Musicians must play music, artists must paint if they
are to be at peace with themselves. What humans can be, they must be. They must be
• The first four needs are what we call deficiency needs, because they come from things we
are lacking. These needs can be met only by external sources, by the environment, people or
lives, but it gives us room to grow and develop as an individual. This need is always
· Maslow, does explain that self-actualization is rarely achieved, even as adults. But we as
teachers, must make sure our students have satisfied their deficiency needs in order to
move on to their growth one. Intrinsic motivation will not occur until they are well fed,
safe in their environment, and can love and respect the teachers and their classmates.
Mayo
Elton Mayo (1880 – 1949) believed that workers are not just concerned with money but could be
better motivated by having their social needs met whilst at work (something that Taylor ignored).
He introduced the Human Relation School of thought, which focused on managers taking more
of an interest in the workers, treating them as people who have worthwhile opinions and realising
that workers enjoy interacting together.
Mayo conducted a series of experiments at the Hawthorne factory of the Western Electric
Company in Chicago
He isolated two groups of women workers and studied the effect on their productivity levels of
changing factors such as lighting and working conditions.
He expected to see productivity levels decline as lighting or other conditions became
progressively worse
What he actually discovered surprised him: whatever the change in lighting or working
conditions, the productivity levels of the workers improved or remained the same.
From this Mayo concluded that workers are best motivated by:
Better communication between managers and workers ( Hawthorne workers were consulted
over the experiments and also had the opportunity to give feedback)
Greater manager involvement in employees working lives ( Hawthorne workers responded to
the increased level of attention they were receiving)
Working in groups or teams. ( Hawthorne workers did not previously regularly work in teams)
In practice therefore businesses should re-organise production to encourage greater use of team
working and introduce personnel departments to encourage greater manager involvement in
looking after employees’ interests. His theory most closely fits in with a paternalistic style of
management.
Cognitive Motivation on wiseGEEK:
• Need-based motivation theories would state that a person chooses the job that best
allows him to provide for his needs, which usually involves making money to obtain
food, shelter, and to provide for children. Cognitive motivation theories explain why
people choose jobs that they like more even though they pay less and provide less.
• Other important focuses of cognitive therapies include evaluating how a patient’s brain
stores information, how he or she patterns behavior after others, and motivation.
Cognitive therapy teaches patients to question and invalidate negative thinking patterns
while replacing those patterns with more positive thought processes.
Social cognitive theory is a learning theory based on the ideas that people learn by watching
what others do and that human thought processes are central to understanding personality. While
social cognitists agree that there is a fair amount of influence on development generated by
learned behavior displayed in the environment in which one grows up, they believe that the
individual person (and therefore cognition) is just as important in determining moral
development [2].
People learn by observing others, with the environment, behavior, and cognition all as the chief
factors in influencing development. These three factors are not static or independent; rather, they
are all reciprocal. For example, each behavior witnessed can change a person's way of thinking
(cognition). Similarly, the environment one is raised in may influence later behaviors, just as a
father's mindset (also cognition) will determine the environment in which his children are raised
[2]
.