In: Economics
Herzberg's two-factor theory and McGregor's Theory X and Theory Y: Explain the theories and why you think they are useful. For each theory, give an example of a workplace situation where it can be applied.
Herzberg's two-factor theory defines two sets of factors
regarding motivation at work place - motivating and hygiene
factors. Motivating factors are those that motivate whereas hygiene
factors are those that do not motivate but their absence might lead
to demotivation. Motivating factors include work, achievement,
recognition, growth etc. Hygiene factors include salary, work
conditions, reporting, supervision etc.
An example would be to improve hygiene factors to reduce
dissatisfaction.
McGregor's Theory X and Theory Y describes two style of
leadership - autocratic and participative. Theory X is based on
carrot and stick principle where employees are assumed to dislike
work and need to be punished and supervised. They are rewarded for
tanglible results. Theory Y expects people to take responsibility
and aims at building collaborative relationship.
For example - if a company faces high staff turnover, Theory Y
might be used whereas if sales are falling Theory X may be
applied