Introduction: In 1960, Douglas McGregor an American psychologist formulated a theory that has changed the path of management thinking and practice. The proportions of direct works and preliminaries and generals have been intentionally combined in the same Cartesian plan. Although the conceptual linkages between Theory X and Theory Y assumptions and managerial styles are relatively straightforward, empirical research has not clearly demonstrated that the relationship between these assumptions and managers' styles of planning, organizing, leading, and controlling is consistent with McGregor's ideas. A close reading of The Human Side of Enterprise reveals that McGregor simply argues for managers to be open to a more positive view of workers and the possibilities that create enthusiasm. Many people interpret Theory Y as a positive set of beliefs about workers.
Assume the direct cost proportion x of 87% and the preliminaries proportion y of 13%. An illustrative case study of a construction contract comparing methods for increased cost adjustment was drawn. Theory X and Theory Y represent two sets of assumptions about human nature and human behavior that are relevant to the practice of management. Theory Y assumes that employees enjoy work that is meaningful, are willing to take on responsibility, and are willing to work for organizational goals or causes they believe in. Some writers suggested that organizations implementing Theory Y tended to revert back to Theory X in tough economic times.
Rest periods and a group incentive plan also had a somewhat positive smaller effect on productivity. They believe that the satisfaction of doing a good job is a strong motivation. At each monthly contract valuation, the computation of allowable costs against the actual costs showed the current profit margin diminishing far below the expected. The managers adopt a more dictatorial style. This was the start of the era of mass production. The contractor recovers R13,375 on project A which has a higher direct woks proportion 89% than on project B R8,750 which has a lower direct works proportion 58%. They believe that team members take pride in what they do without being pushed, and that they thrive on responsibility.
Security needs are important for survival, but they are not as demanding as the physiological needs. The role of the Theory X manager is to coerce and control employees to work towards organizational goals. Many people interpret Theory Y as a positive set of beliefs about workers. The authoritarian leadership style is therefore the most appropriate leadership style in Theory X. Theory Y, on the other hand, speculates that a manager believes their employees enjoy work and wish to contribute, the manager is therefore more likely to include them in the decision making process and employ a more democratic style of leadership Marcousse 2003.
Theory Y, on the other hand, presents a positive view of human nature that assumes individuals are generally industrious, creative, and able to assume responsibility and exercise self-control in their jobs. He may want to be on a project team, complete a special task, learn other tasks or duties, or expand his duties in some manner. This question of motivation has been studied by management theorists and social psychologists for decades, in attempts to identify successful approaches to management. Now the pangs of loneliness, ostracism, rejection, friendlessness, and rootlessness are pre-eminent. The presentation and settlement of contractor's claims. Management is responsible for organizing the elements of productive enterprise-money, materials, equipment, and people-in the interests of economic ends.
As an example, in some cultures, social needs are placed more fundamentally than any others. Thus, we can say that Theory X presents a pessimistic view of employees' nature and behaviour at work, while Theory Y presents an optimistic view of the employees' nature and behaviour at work. Essentially, if you hold people to a certain expectation - whether that's good or bad - your own actions as a manager will influence those employees to act accordingly. Theory Y manager believes that, given the right conditions, most people will want to do well at work and that there is a pool of unused creativity in the workforce. Finally, human beings are assumed to be easily manipulated and controlled. As a result of this, management believes that workers need to be closely supervised and comprehensive systems of controls developed. McGregor drew upon the work of Abraham Maslow 1908-1970 to explain why Theory X assumptions led to ineffective management.
However, beyond this commonality, the attitudes and assumptions they embody are quite different. The needs hierarchy offers one approach to such human resource issues as quality assurance, employee burnout, and job satisfaction. In addition to their preference for a certain leadership style and the work that has to be done, a manager will either opt for Theory X or Theory Y. They think most employees are only out for themselves and their sole interest in the job is to earn money. An average employee intrinsically does not like work and tries to escape it whenever possible. McGregor views Theory Y to be more valid and reasonable than Theory X. It is believed that employees enjoy their mental and physical work duties.
The motivation, potential for development, capacity for assuming responsibility, and readiness to direct behavior toward organizational goals are all present in people-management does not put them there. An outstanding title can increase tweets, Facebook Likes, and visitor traffic by 50% or more. Waddell, Devine, Jones, George, 2007, Contemporary Management,McGraw-Hill,Inc. Physiological Needs: Food, shelter, sexual satisfaction i. In 2003, the author was working in the estimating department of a construction contracting company in Zimbabwe. Contingencies sum + O 7.
This last point is especially important for virtual employees whose absence from the office puts an extra obligation on managers to keep these employees engaged in organizational communications. McGregor recognized that some people may not have reached the level of maturity assumed by Theory Y and may initially need tighter controls that can be relaxed as the employee develops. In 1960s Douglas McGregor develops human motivation theory using concept of Theory X and Theory Y to analyse this issue. The employees have skills and capabilities. To McGregor, a steady supply of motivation seemed more likely to occur under Theory Y management.