Mc Gregor's & Ouchi's theories of management.
- 2. McGregor’s Theory X and Theory Y are theories about human behavior and motivation in the organization which was published in 1960 in his book The Human Side Of Enterprise. This theory divides workers and managers in the organization in two typical groups according to how managers lead their subordinates and respectively how subordinates behave.
- 3. In the first few decades of the 20th century, Theory X was predominated in business after the mechanistic system of scientific management. Theory X is an authoritarian style where the emphasis is on “productivity, on the concept of a fair day's work, on rewards for performance. Lately Theory X has been considered as a negative way of dealing with employees. Because the authority has to keep a careful eye on the employees
- 4. Dislikes work No Ambition Irresponsible Follow Than Lead Resists change Hesitant to try new things Works only for that particular assigned job
- 5. HARD APPROACH Coercion Implicit threats Close supervision Tight controls SOFT APPROACH Permissive Seek feedback Expect in return that they co-operate when required.
- 6. • The theory X management style is widely accepted inferior to the other theories, it has its place in large scale production, operation, and unskilled production line work. • Once the need is met there is no further incentive for the employee to work more, therefore only unfilled needs are motivational. • The management should keep on appreciating the work of the employees, this will keep them motivated and they’ll work more.
- 7. Theory Y represents the modern and dynamic nature of human beings .It was suggested to counter approach the human needs in business. Theory Y is a Participative Style of management which assumes a democratic management. This theory assumes that employees will exercise on Self-accord in achievements of the company’s objectives up to their concerned degree
- 9. Ambitious employees Tireless effort for recognition Innovation in the organization Prompt Decisions Achievement of personal goals Achievement of Organizational Goals
- 10. Comparison Between Theory X and Theory Y
- 11. .
- 13. Theory X Strong rules and regulations Passive work attitude No responsibility, no initiative follows leads to leads to confirms
- 14. Theory Y Decentralized management Participative work attitude Initiation and implementation follows encourages strengthen allows
- 16. Assumes that people are lazy and money motivated. Mangers need to control and motivate by threats and fear. Leadership will be autocratic. Worker morale will be low under this type of authoritative leadership.
- 17. Seek and accept responsibility no need of much direction. The Democratic and Free-rein method of leadership is used. The management motivate by encouragement and inclusion Employees need not to be controlled.
- 18. Theory Z of Ouchi is Dr. William Ouchi's so- called "Japanese Management" style popularized during the Asian economic boom of the 1980s. Theory Z focused on increasing employee loyalty to the company by providing a job for life with a strong focus on the well-being of the employee, both on and off the job.
- 19. Features of Z theory Long Term Employment Individual Responsibility Holistic Concern Slow evaluation and Promotion Consensual Decision Making
- 20. • Organizations following Theory Z generally make lifelong commitments to their employees and expect loyalty in return. • This promotes stability in the organization and job security amongst employees.
- 21. Organizations following theory Z emphasizes communication collaboration and consensus in decision making.
- 22. Theory Z is characterized by concern for employees that goes beyond the workplace.
- 23. Employee participation in decision making process is not always supported by managers as it can hurt their ego. Concept of Lifetime employment may not be lucrative for employees with high admissions.
- 24. American Japanese Short Term Employment Life Time Employment Individual Decision Making Collective Decision Making Rapid Evaluation and Promotion Slow Evaluation and Promotion Segmented Concern for employee as an employee Holistic Concern for employee as a person
- 25. IBM Procter and Gamble Hewlett Packard