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It was Douglas McGregor who set forth - at opposite extreme -pairs of assumptions about human beings, which he thought, were by the actions of autocratic and permissive managers. First set of assumptions are contained in 'Theory X" and the second set of assumption "Theory Y". It is important to note that these sets of assumptions not based on any research whatever. They, according to McGregor, are intuitive deductions.
Theory X
"Theory X, or autocratic managers often make the following assumptions their subordinates:
- The average human being has an inherent dislike of work and will avoid it, if he can.
- The average human being is lazy and avoids responsibility.
- The average human being is indifferent to organizational goals.
- The average human being prefers to be directed, wishes to avoid responsibility, has relatively little ambition and wants security above all.
According to McGregor, this is a traditional theory where workers have to be persuaded and pushed into performance. Management can offer rewards to a worker who shows higher productivity and can punish him if his performance is below standard. This is also called 'carrot and stick' approach to motivation. It suggests that threats of punishments and strict control are the ways to control the people.
Theory Y
Managers with Theory Y orientation make the following assumption about people:
- The average human being does not inherently dislike work. Depending upon controllable conditions, work may be a source of satisfaction or a source of punishment.
- The average human being will exercise self-direction and self-control in the service of objectives to which he is committed.
- Commitment to objectives is a function of the rewards associated with their achievement.
- The average human being learns under proper conditions, not only to accept, but also to seek responsibility.
- The capacity to exercise a relatively high degree of imagination, ingenuity and creativity in the solution of organizational problems is widely not narrowly, distributed in the population.
Theory Y assumes that goals of the organization and those of individuals are not necessarily compatible. Worker's commitment is directly related to the satisfaction of their needs. Thus, this theory places great emphasis on satisfaction of the needs, particularly the higher ones the employees. It does not rely heavily on the use of authority as an instrument of command and control. It assumes that employees exercise self-direction and self-control in the direction of the goals to, which they feel themselves committed.
Kavungya answered the question on March 26, 2019 at 12:59
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