The Human Side of Enterprise – Theory X and Y
In the 1950s and 1960s, Douglas McGregor developed two contrasting theories for the behaviour of individuals at work. In his book “The Human Side of Enterprise” he argued that your view of motivation drove your management style. He termed the two different approaches “Theory X” and “Theory Y” and they can be seen as central to how managers treat teams.
Theory X
Managers with this viewpoint believe that team members dislike their work. They believe they have little inherent motivation. The core beliefs are that team members:
- Do not like or enjoy their work
- Will only deliver work if they are coerced ot threatened
- Require supervision to be able to achieve their work successfully
- Have no internal motivation and require external reward or punishment to deliver
This belief drives managers to take an authoritarian style. There are rigorous performance appraisals base on output. A tight control of these and of rewards is used to motivate staff.
Organisations based on Theory X approaches will tend to have strong separation of management and workers. They will generally have multiple tiers of management and decision making will be escalated where possible. Delegation to lower layers is discouraged.
The “Theory X” approach aligns with traditional management styles such as Scientific Management.
Theory Y
Managers with the “Theory Y” approach believe that motivation is more intrinsic and promote a collaborative management style. They assume that individuals:
- View work as fulfilling and valuable
- Are happy and capable to work independently
- Are able to be involved in decision making and accept responsibility
- Can solve problems themselves without direction
Organisations based on Theory Y approaches tend to have less management hierarchy. Decision making may be delegated to the lowest viable level. Teams, rather than hierarchies, become the key focus area.
The “Theory Y” approach aligns with agile management approaches for team management.
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