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McGregor: Theory X and Theory Y

Douglas Mc Gregor (1906 - 1964), doctor in psychology of Harvard University, has developed a true management theory based on two conceptions of man at work: theory X and theory Y. Its influence was decisive in the field of the  psychology industrial with the publication, in 1960, of The Human Side of Enterprise:  

THEORY X: –

• An average individual holds an innate abhorrence towards work and will do anything to avoid it;
• All individuals should be controlled, directed, threatened with sanctions so that they invest in more efforts for the achievement of organizational objectives ;
• An average person prefers to be led, wishes to avoid responsibilities, has a little ambition, and seeks the safety front first.

Through theory X, the author evaluates that this hypothesis has constituted a real postulate for business leaders and an ideology dominant to which he opposes the postulates of the theory Y that he presents as a real alternative in terms of management method men.

THEORY Y

• An individual has the capacity for self-control and self-direction;
• Personal commitment refers to the result of a search for satisfaction with social needs. An individual learns to search for responsibilities; –
• The capability to implement one’s creativity, imagination at the service of an enterprise is  common amongst men;
• In different working conditions, the possibilities intellectuals of men are largely unused

Source: Lerner (2011)

McGregor presents an argument that Theory Y and the management style resulting from this theory are more suitable for human nature as the theory gives the possibility for management to innovate, and to discover new means of organizing and directing human effort.

He talks about man’s relationship to work and develops the theory X (consumption of W) / Y (fulfillment at work).

For Mc Gregor, there are 2 types of employees who are most often distinguished by their professions. For him, the worker does not understand his work in a similar manner as the engineer. The same is presented in The Human Dimension of the Company. The business world shows several varied and diverse profiles within a single structure. Douglas McGregor proposes a vision that comprises of classifying these different profiles into two distinct groups. The first group sees work as consumption while the second group does not perceive work as an unpretentious task but as a means of accomplishment and development (Sorensen and Minihan, 2011).

Theory X:

Individuals have an innate aversion to work; therefore, they must be controlled and immersed in a uniform system with a framework and a hierarchy. They are looking for security and basically want to be led. It is therefore necessary to favor a rigid structure.

Theory Y:

Employees tend to seek fulfillment at work; they demand autonomy, self-control, and decision-making. Their priority is to avoid restrictions and the lack of confidence at any cost.

Thus, if we are dealing with individuals that have a higher degree of involvement, abundance in the means of controlling will be excessive and may hinder the development of the group. It is, therefore, necessary to favor a flexible structure.

This theory makes it possible to show that autonomy and empowerment might not be necessarily required by employees as this can result in misunderstanding and even stress. As a matter of fact, it is a lot easier if there are fewer skills in an individual to have the actions dictated by a leader instead of having to be an actor in decision-making.

The type of structure, the management style, and the means implemented to promote motivation may therefore differ from one individual to another. To generalize, we note that it is more difficult to assign many responsibilities to unskilled or low-skilled jobs. The manager’s role is to identify the characteristics specific to each individual or each group of individuals to classify them into two groups: type X employees and type Y employees (Kochan et al., 2002).

McGregor considers, however, that Theory Y and the resulting management style are more suited to human nature because the theory in question gives the employee the possibility of being an actor within the company and therefore of participating in the process of innovation, and work organization, and leadership.

In this theory, individual interests can therefore converge toward collective interest.

Indeed the type X individual looking for security will bring a form of sustainability to the organization. Individual Y will be asking for training and taking initiative which will lead to collective reflection.

It should be noted that it is quite rare within a company to have only type X employees or only type Y employees. This duality can therefore be an opportunity but nevertheless complicates the task of the manager who must find the right way to motivate the different profiles.

It is to be used to show that you cannot manage and therefore create a spiral of motivation and involvement in the same way for all members of the company. McGregor’s analysis may also go against common opinion. Indeed, a flexible structure and facilitation of initiative-taking do not necessarily increase motivation; on the contrary (Head, 2011).

Motivation Theory	Objective
Maslow’s hierarchical model	Assumes that the individual has an unusually strong set of needs, which can be ranked in a hierarchical order
Two-factor theory by Frédéric Herzberg	This states that there are certain factors in the workplace that result in job satisfaction whereas, there are certain factors that result in dissatisfaction, all of them act independently from one another.
The Acquired Needs Theory by David McClelland	The theory states that individuals have three driving motivators – the need for achievement, power or affiliation.
Equity Theory	The theory states that individuals compare themselves with others and are more often dissatisfied.
Expectancy Theory	This theory indicates that the behavior of an individual can be motivated through anticipated results and consequences

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