In: Accounting
4. What are theory X and theory Y? Give example of Theory X and Theory Y management styles.
Theory X
This theory believes that employees are naturally unmotivated and dislike working, and this encourages an authoritarian style of management. According to this theory, management must firmly intervene to get things done. This style of management concludes that workers −
Disfavor working.
Abstain responsibility and the need to be directed.
Need to be controlled, forced, and warned to deliver what's needed.
Demand to be supervised at each and every step, with controls put in place.
Require to be attracted to produce results, else they have no ambition or incentive to work.
McGregor observed that X-type workers are in fact mostly in minority, and yet in mass organizations, such as large scale production environment, X Theory management may be needed and can be unavoidable.
Examples of theory x
Theory X presumes all employees are lazy and will shirk working if given a chance. Most managers subscribeto this idea. An example is the time clock. You have to clock in partly because the management thinks you'll arrive late and leave early if you don't
Theory Y
This theory explains a participative style of management, that is, distributive in nature. It concludes that employees are happy to work, are self-motivated and creative, and enjoy working with greater responsibility. It estimates that workers −
Take responsibility willingly and are encouraged to fulfill the goals they are given.
Explore and accept responsibility and do not need much guidance.
Assume work as a natural part of life and solve work issues imaginatively.
In Y-type organizations, people at lower levels are engaged in decision making and have more responsibility.
Examples of theory y
Theory Y presumes that workers want to do a good job and will do a good job if you let them. • An example is an artist on contract to produce art. You tell the artist what you want done but you leave it to him/her when and how to do it as long as they produce what you want within your timeline. She can paint at 2AM for all you care - as long as you get art by the deadline.