prepared by-

White

Collar Crew

a presentation
on......

Douglas

Douglas McGregor

Douglas Murray McGregor(19061October1964)

wasamanagementprofessorattheMITSloanSchoolof
ManagementandpresidentofAntiochCollegefrom1948
to1954.HealsotaughtattheIndianInstituteof
ManagementCalcutta.His1960bookTheHumanSideof
Enterprisehadaprofoundinfluenceoneducation
practices.

Douglas
McGregor

HeearnedaB.E.
(Mechanical)fromRangoon
InstituteofTechnology,
anA.B.fromWayneState
Universityin1932,thenearned
anM.A.andPh.D.inpsychology
fromHarvardUniversityin1944
and1955respectively.

Remarkable Contribution to Manage

ment

The Human Side Of

Enterprise- 1960

In the book The Human Side

of Enterprise, McGregor
identified an approach of
creating an environment
within which employees are
motivated via authoritative,
direction and control or
integration and self-control,
which he called theory X and
theory Y respectively.

From the book

1.TheoryXandTheoryY
2.TheoryXsPrinciples
3.McGregorsRemarksonTheoryX
4.TheoryYsPrinciples
5.McGregorsRemarksonTheoryY
6.McGregorsSuggestionstoPerformTheoryY

Theory X and Theory Y

TheoryXandTheoryYaretwosetsofassumptionsabouthumannatureand
behaviorthatarerelatedtothepracticeofmanagement.

TheoryX
Representinganegativeviewofhumannaturethatassumes
peoplegenerallyarenaturallyirresponsiblefortheirworkand
requireclosesupervisiontodojobs.
TheoryY
Indicatingapositiveviewofhumannaturethatassumes
peoplearegenerallyhard-working,creativeandresponsiblefor
exercisingself-controlovertheirjobs.

Theory Xs Principles
1. Managementisresponsiblefororganizingtheelementsof
enterpriseincludingproduction,capital,materials,facilities
andemployees.
2.Intermsofemployees,managementisaprocessof
directingtheirefforts,motivatingthem,controllingtheir
actions,andmodifyingtheirbehaviortofittheneedsofthe
organization.
3.Withouteffectivemanagement,employeeswouldbepassive
evenresistanttoorganizationalneeds.Hence,theymust
beadvised,rewarded,punished,andcontrolled.Their
activitiesmustbedirected.

Theory Xs Principles
How Managers
Behave

Theory Xs Principles
How Employee Feels for
Manager

Theory Xs Principles
How Employee
Feels

McGregors Remarks on Theory X

Itisof"hard"managementwhosemethodsinvolveclose
supervision,rigidcontrolandcompulsion.Itwouldleadto
restrictionofoutput,mutualdistrustandevensabotage.

Theory Ys Principles
1. Employees are not by nature passive or resistant to
organizational needs. They have become so as a result of
experienceinorganizations.
2. Employees, by nature, have the motivation, potential for
development and capacity for assuming responsibility and
readinesstodirectbehaviortowardorganizationalgoals.Itisthe
responsibility of management to make it possible for employees
to recognize and develop these human characteristics for
themselves.
3. The essential task of management is to arrange organizational
conditions and methods of operation so that employees can
achieve their own goals by directing their efforts toward
organizationalobjectives.

Theory Ys Principles
How Managers
Behave

Theory Ys Principles
How Employee
Feels

McGregors Remarks on Theor

yY
Itisof"soft"managementwhosemethodsastolerance
andneedsatisfaction.Itcanleadtomoreeffective
managementofemployeesintheorganization.

McGregors Suggestions to Perform

Theory Y
1. Management should have
employees higher level needs met
in the workplace.
2. Close supervision and the threat of
punishment are not the proper
means for encouraging employees
to exercise productive efforts.
3. Some opportunities should be
provided such as allowing
employees to make decisions,
redesigning jobs to make them more

Practice of Theory X and The

ory Y
1.SignificanceofTheoryXandTheoryY
2.Arguments:WhichisMoreEffective,TheoryXorTheory
Y?
3.EffectsonManagement
4.CriticismofTheoryY
5.TheoryXandTheoryYinthe21stCentury

Significance of Theory X and Theo

ry Y

In the late 20th century, Theory X &

Theory Y was considered as the basis
for management style and employees
motivation. When it comes to the 21st
century, Theory X & Theory Y is still
studied as to develop greater
understanding of modern management
ideology such as job enrichment, jobcharacteristics model and self-

Arguments: Which is More Effectiv

e, Theory X or Theory Y?
Arguments:
1. Organizations putting Theory Y
into practice tend to go back
to Theory X in hard economic
times.
2. Theory Y is not always more
effective than Theory X.
3. Unforeseen events of each
managerial situation determine
whether Theory X or Theory Y
was proper.

Effects on Management

Theory X:
1. Managers leadership styles are autocratic and the
communication flow is downward from managers
to the employees. This may cause resistance from
employees.
2. The upper setting of objectives gets little or no
participation from employees.
3. It results in outside, control, with the manager
acting as a performance judge who focuses
generally on the past.

Effects on Management
Theory Y:
1. It may lead to cooperative objectives designed with input from
both employees and managers, resulting in a stronger
responsibility by employees for accomplishing the shared
objectives.
2. It encourages leadership styles to be more participative and
allows employees to seek responsibility for achievement of
goals. Theory Ys leadership is likely to improve
communication flow, especially in the upward direction.
3. It leads to control processes based on employees self-control.
The manager is more likely to act as an instructor rather than
a judge who focuses on how performance can be improved in
the future rather than on who is responsible for past

Criticism of Theory Y
1. Rather than concern for employees, Theory Y style
managers are simply engaged in an attractive form of
management.
2. Sometimes, managers better match work tasks to
basic human motivation through participative
management, job enlargement and other programs
based on Theory Y.
3. Actually, managers still focused on measures of
productivity rather than employees interests.
4. It is a patronizing plan for bringing increased
productivity from employees. Unless employees
shared in the economic benefits of their increased

Theory X and Theory Y in the 21st

Century
1. McGregors works on Theory X and Theory Y have had a great
impact on management ideology and practice. They have been
includedinmostbasicmanagementbooks.Thesebooksarestill
facingpeopleofmanagementtoday.
2. As for the practice of management, the workplace of the 21st
century, which emphasizes on self-managed work teams and
otherformsofworkerinvolvementprograms,generallygoeswith
theprinciplesofTheoryY.

Thank you!

Team MembersName
Sandeep Banerjee
Smita Datta
Pratik Kumar Ghosh
Paras Patel
Saurav Kumar Polley
Sreyasi Chakraborty
Aishik Saha
Arinaz Cyrus Dastur