Teaching Plan

 


Evolution of Modern Management


McGREGOR: THEORY X, THEORY Y

 

McGregor in the late 1950's was dissatisfied both with the industry practices that emphasize management as control and direction and with the Human Relations school that de-emphasized the role of the manager.

 

He believed that the manger's (and scholarly writing's) assumptions about the nature of people was wrong. The way managers perceive humans at work drove the way that management was conceptualized and performed.

 

There are two ways of perceiving people at work:

Theory X:

  1. The average human being has an inherent dislike of work and will avoid it if he can...
  2. Because of this human characteristic of dislike of work, most people must be coerced, controlled, directed, threatened with punishment to get them to put forth adequate effort toward the achievement of organizational objectives...
  3. The average human being prefers to be directed, wishes to avoid responsibility, has relatively little ambition, wants security above all.

Theory Y:

  1. The expenditure of ...effort in work is as natural as play or rest. The human being does not inherently dislike work...
  2. External control and the threat of punishment are not the means for bringing about effort... . Man will exercise self-direction and self-control in the service of objectives to which he is committed.
  3. Commitment to objectives is a function of the rewards associated with their achievement. The most significant of such rewards, e.g., the satisfaction of ego and self-actualization... .
  4. The average human being learns, under proper conditions, not only to accept but to seek responsibility. ...
  5. The capacity to exercise a relatively high degree of imagination, ingenuity, and creativity in the solution of organizational problems is widely ...distributed... .
  6. (T)he intellectual potentialities of the average human being are only partially utilized.

If business managers challenged their own preconceptions and accepted a Theory Y perspective, he thought that it would be easier for the organization to achieve worker acceptance of organizational goals and improve performance.,

 


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