There are several ways to lead an organization and this theory allows fluidity. While Theory X managers may be suited for some process-driven organizations, a more practical management style today is that of a Theory Y thinker. A lot of control and supervision could lead to resentment and will not help in facilitating innovative or creative ideas. In this capacity, leadership can be seen as a differentiated role and the nucleus of group activity. Power, then, essentially answers the how question: How do leaders influence their followers? job satisfaction is primarily related to higher-order needs. Management believes employees' work is based on their own self-interest. Theory Z stresses the need to helpworkers become generalists, rather than specialists. Theory X explains the importance of heightened supervision, external rewards, and penalties, while Theory Y highlights the motivating role of job satisfaction and encourages workers to approach tasks without direct supervision. Leonard Bernstein was part of the symphony, but his role as the New York Philharmonic conductor differed dramatically from that of the other symphony members. About 1015 years ago, power and leadership once again shifted, this time to people with finance and legal backgrounds, because the critical contingencies facing many organizations were mergers, acquisitions, hostile takeovers, and creative financing. I think there is a little misconception here. CRC Press; New York; pp. McGregor recognized that some people may not have reached the level of maturity assumed by Theory Y and may initially need tighter controlsthat can be relaxed as the employee develops. The hard approach results in hostility, purposely low output, and extreme union demands. What is the role of the leader and follower in the leadership process? Question: Theory X managers are likely to believe thata. He mentioned Theory X and Theory Y in his book, The Human Side of Enterprise, published in 1960. consent of Rice University. Essentially, if you hold people to a certain expectation - whether that's good or bad - your own actions as a manager will influence those employees to act accordingly. They're full of potential, and it's through their own. McGregor acknowledged both types of managers as being a legitimate means of motivating employees, but he felt that you would get much better results through the use of Theory Y rather than Theory X. He would try to constantly control the employees, leading to resentment and exhaustion in the employees, leading to a turnover. The Theory Y manager generally believes employees want responsibility and will perform up to expectations if given clear direction and goals. Employees are given rewards and incentives, prompted, punished, coerced or forced into working. OpenStax is part of Rice University, which is a 501(c)(3) nonprofit. It has been a fact that sustainability and employee turnover in corporations rely heavily on the different styles of management practiced at given companies nowadays. In actual practice, most managers today practice a combination of Theory X and Theory Y styles of management. An organization with this style of management encourages participation and values individuals' thoughts and goals. Jack Welch was the formal leader of General Electric, and Leonard Bernstein was the formal leader of the symphony. Although born and educated in America, Ouchi was of Japanese descent and spent a lot of time in Japan studying the countrys approachto workplace teamwork and participative management. Based on these factors, it is easy to see how Theory X differs from Theory Y and easy to imagine their potential outcomes in the workplace. Theory Y results in an arrangement whereby individuals can achieve their own goals and happily accomplish the organizations goals at the same time. As such, it is these higher-level needs through which employees can best be motivated. A manager who believes in Theory Y could have assumptions that: Too much freedom could lead to no accountability and people could lose direction and focus. 17 chapters | They are self-centered and care only about themselves and not the organization or its goals, making it necessary for a manager to coerce, control, direct or threaten with punishment in order to get them to work towards organizational goals. When this persons role is sanctioned by the formal organization, these team leaders become formal leaders. He would hierarchically arrange the job roles with several supervisors for different departments, looking over employees. Ouchis theory first appeared in his 1981 book, Theory Z: How American Management Can Meet the Japanese Challenge. This theory is also likely to be used when the work in the organization is repetitive and employees are likely to get bored and need some control. These theories have become the reference point for various approaches to the issues of human resource administration and organisation. As a result, they think that team members need to be prompted, rewarded or punished constantly to make sure that they complete their tasks. The Situational Leader: Overview & Examples | What is a Situational Leader? Why not assume the best in people? I see Theory X and Theory Y as two natural divisions of people; groupings into those who dislike working and those who are inclined to working without persuasion. This theory is hinged on the idea that employees need strict guidance and tight management regarding assignments, and specific consequences for failing to meet company expectations. As a result, they think that employees need to be prompted, rewarded or punished regularly to make sure that they perform their tasks. Jeff Bezos, founder and CEO of Amazon, used to bring an empty chair to meetings to signal and remind participants of the most important people that did not have a seat at the table: the customers. ]; the use of rewards often leads people to think in terms of How much am I getting? or How much should I give? or Am I breaking even? The use of referent power produces identification with the leader and his cause. b.employees are motivated mainly by the chance for advancement and recognition. [6], The soft approach is characterized by leniency and less strict rules in hopes for creating high workplace morale and cooperative employees. This allows the individual to receive either a direct reward or a reprimand, depending on the outcome's positive or negative nature. The use of rationality, expert power, and/or moralistic appeal generally elicits commitment and the internalization of the leaders goals.29, Leaders who use referent and expert power commonly experience a favorable response in terms of follower satisfaction and performance. As a consequence, they exert a highly controlling leadership style. Most managers will likely use a mixture of Theory X and Theory Y. Reason In theory X, the manager believes that employees are lazy, and they avoid doing work properly. One view holds that in traditional organizations members expect to be told what to do and are willing to follow highly structured directions. Decision making became centralized and control was established through a chain of command where workers were not being provided an opportunity to contribute to the process. Are inherently lazy, lack ambition and prefer to be directed on what to do rather than assume responsibility on their own. They are inherently lazy, lack ambition and prefer to be directed on what to do rather than assume responsibility on their own. a Theory X Manager typically believes their staff: dislike their work / are lazy cannot be trusted need to be closely supervised / micro-managed dislike or avoid responsibility have no inherent incentive or desire to work lack ambition work only for pay or because they have to have to be driven by rewards or punishment This unique platform allows team leaders to share visuals with teammates, work together on projects in real time, comment on documents and project updates, and work collaboratively with up-to-the-minute feedback. You might, for instance, have a tendency to micromanage or, conversely, you may prefer to take a more hands-off approach. Answer the question(s) below to see how well you understand the topics covered above. They do not always need coercion, incentives or force to complete their work. Overall leader effectiveness will be higher when people follow because they want to follow. 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He was particularly interested in what motivates people to work hard, in particular on what belief systems motivate people to work hard. https://openstax.org/books/principles-management/pages/1-introduction, https://openstax.org/books/principles-management/pages/13-3-leader-emergence, Creative Commons Attribution 4.0 International License. When employees rise to a higher level of management, it is expected that they will use Theory Z to bring up, train, and develop other employees in a similar fashion. While there is a more personal and individualistic feel, this leaves room for error in terms of consistency and uniformity. To expectations if given clear direction and goals a mixture of Theory X managers are likely to believe.! Have become the reference point for various approaches to the issues of Human resource and. Be higher when people follow because they want to follow highly structured directions constantly control the,! 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