Question

Develop a short list of local and national businesses where employees might be better motivated by theory Y assumptions than theory X assumptions. Explain what factors put some companies on the X list and others on the Y list. Are there specific characteristics, such as education required and/ or the work itself, which appear to be determining factors?

Answer 1

The business where employees are better motivated by Theory Y assumptions than the theory X assumptions are as follows:

1. Amazon
2. Google
3. FaceBook
4. Apple
5. 3 M
6. McDonald's
7. Wegmans

The theory X assumes that employees are lazy and will work only if forced. They need to be monitored and companies should have a strict hierarchy system is to ensure the employees work at their optimal levels. The employees will be ambitious only if they have enough monetary incentive. Further employees have no ambition without added financial benefits. The whole theory takes a pessimistic view of employees. The employees don’t want to take on any responsibility voluntarily. Theory X works on a control based system. This system normally is a hindrance to employee productivity and the motivation levels could fall. The employees need continuous supervision and need to be constantly monitored. The theory X predominantly works on achieving the basic needs and the security needs only.

In contrast, the theory Y dictates that employees are self-motivated, driven and ambitious. They would like to be performers, accept a large amount of responsibility. They have an enormous amount of self-control, autonomy and are empowered. The employees like to show their creativity and will show a great desire for self-achievement. The role of the manager is to remove the barriers and hindrances. The company follows a democratic way of functioning. The employees are self-driven and will work to achieve their goals. The theory is based on social needs, the need for self-esteem and self-actualization.

The determining factors for the management and motivation theories are driven by the business model.

Theory X would apply to a traditional manufacturing business set up especially an owner driven small business where the employees would be a college dropout and the work was done manually. In today’s context with qualified team handling manufacturing and systems, a higher level of automation the Theory Y is more relevant. The company normally introduces processes and clear objectives. Most team members are qualified to understand how they can achieve their best. The theory X is basically obsolete and was useful in the early 1900’s when companies were in the initial stage of industrialization.

To sum it up in today’s world the company should use a very little part of Theory X and a large part of theory Y. The execution and implementation of theory Y will ensure the long-term success of the business as most companies are large and diverse. There is no time to micromanage the employees.