What factors determine the style of management that business managers use?
According to Douglas McGregor, a professor and author of the book ‘The Human Side of Enterprise’ at MIT, one of the most important determinants of the management style is the attitude of managers towards their workers. The book had a profound influence on education practices as he contributed much to the development of management and motivational theory.
What is Theory X and Theory Y of Management
McGregor identified two distinct management approaches to the workers calling them Theory X and Theory Y of Management. This theory splits corporate thinking into two camps.
The general view is that workers will behave and act in a particular way as a result of that particular attitude that management has towards them.
Let’s take a look at these two attitudes in details.
Theory X Manager
Theory X holds that employees are inherently disinclined to work and needed to be strictly controlled.
Managers who subscribe to a pessimistic view of their workforce, believing them to be inherently disinclined towards work, responsibility-averse, and lacking creativity, are more likely to adopt an authoritarian leadership style. This approach assumes workers are unmotivated, seek to avoid accountability, and lack initiative. Under such assumptions, managers tend to exert tight control, implement close supervision, and refrain from delegating authority. This restrictive environment can demotivate employees, potentially leading them to disengage from work, hinder their contributions, and even align with the perceived negative traits due to the management style.
Theory Y Manager
Theory Y holds that employees should be trusted and empowered.
Managers who adhere to a Theory Y perspective, characterized by an optimistic view of their workforce, believe that individuals inherently enjoy work, readily embrace responsibility, and possess valuable creativity. This outlook fosters a leadership style based on less control, less supervision, and a greater emphasis on delegating authority. Managers employing this approach trust their employees to actively contribute ideas and solutions to work-related challenges. Consequently, employees often flourish within such an environment, experiencing heightened job satisfaction and motivation, leading them to actively contribute and strive for meaningful achievements. This positive cycle reinforces the Theory Y assumptions, creating a virtuous circle of trust, motivation, and productivity.
In practice, most business managers will have views somewhere between these two extremes of Theory X and Theory Y of management.
