THEORY 5

McGREGOR’S X AND Y THEORY

Use to identify which stereotypical type of manager you are closest to and consider how this impacts on your actions and how you are perceived by staff.

Douglas McGregor identified two different sets of assumptions made by managers about their staff. Each set of assumptions represents an extreme view of people and can be summarised as follows:

Illustration

McGregor believes that every manager’s actions are governed by how they view human nature. A Theory X manager will attempt to exercise tight control by close supervision, demands for strict adherence to rules and threats of punishment. A Theory Y manager will create an environment where effort is recognised and rewarded and praise is given regularly.

HOW TO USE IT

  • Don’t assume that modern managers should embrace Theory Y and disregard Theory X. In the real world, you may have to deal with people whose only motivation is to earn as much money as possible for the least amount of effort.
  • Recognise that if you choose Theory X your style will be about command, control and fear and that you will rely on coercion (see Theory 15), implicit threats and tight supervision to manage your staff. Do you want this?
  • If you choose Theory Y you will promote cooperation, rewards and good working relationships. But how are you going to deal with those members of staff who see such an approach as weakness?
  • Adopt an approach that lies somewhere between the two extremes of X and Y, but recognise that there is a danger in switching between them. Staff expect managers to be consistent (see Theory 12). Switching approaches may cause confusion.
  • To avoid confusion, set clear limits for staff actions. Identify those rules, procedures and deadlines where you expect total compliance. Make it clear what failure to comply will mean and enforce your rules consistently.
  • Manage your team’s remaining activities using a Theory Y inspired approach. Make yourself available to staff, listen to what they have to say and recognise that sometimes staff need you to believe in them before they can do their best work.
  • Always maintain basic ground rules. They keep you and the organisation safe from ne’er-do-wells who just want to take you for a ride.

QUESTIONS TO ASK

  • On a continuum, where Theory X is 1 and Theory Y is 100, where would you place yourself? On the same continuum, where would your staff place you?
  • Given your organisation’s culture (see Section 6) how acceptable is your approach?
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