Theory X Versus Theory Y

Fundamentals of Management MGMT 302

Theory X versus Theory Y

July 29, 2010

In 1960, Douglas McGregor released a book titled The Human Side of Enterprise. In the book, McGregor examined theories of behavior of individuals at work. He called the two theories Theory X and Theory Y. His assumptions were based on social were based on social science research. McGregor considered these two theories to be quite separate attitudes.(Accel-Team, 2010)

Theory X

McGregor’s Theory X suggests that managers perceive that subordinates have an inherent dislike of work and will avoid it if possible. Due to this assumption, most people must be threatened and controlled before they work hard. It is also assumed that employees wish to avoid responsibility. They prefer to be directed and told what to do and how to do it.(Fandt, Goodman, et. al, 2007)

Theory X is an authoritarian style of management, or autocratic. Managers like to make all important decisions and closely supervise and control their subordinates. Managers do not trust their workers and give orders that they expect to be obeyed. This style can be effective in situations such when quick decisions are needed in a company and when controlling a large number of low-skilled workers.(Tutor2u)

A Theory X manager usually believes that everything must end in blaming someone else. The manager thinks that all prospective employees are only out for themselves. Theory X managers also feel that the sole purpose of the employee’s in their job is money. They will blame a person before they question whether or not it may be the system, a policy, or lack or training that deserves the blame.(Accel-Team, 2010)

Theory X has one major flaw. It is more likely that this style will cause Diseconomies of Scale. This is the increase in long-term average cost of production as the scale of operations beyond a certain level.

Theory Y

McGregor’s Theory X suggests that managers perceive that subordinates enjoy work...