The concept of Theory X and Theory Y was introduced by a Social Psychologist Douglas McGregor and it was published in 1960 in his book “The Human Side of Enterprise. The fundamental idea of McGregor was to explain the behaviors of the individuals and the applied management…
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This theory tends to adopt the authoritarian style of management. Whereas, Theory Y assumes that individuals take responsibility and they do not need control and direction on each step, they are active, motivated and consider the work as the natural part of their lives, and are capable of achieving higher goals in their jobs. This theory is considered is the participative style of management.
One style cannot be used in all situations. It totally depends on the circumstances and conditions of the environment and employees. The management can be authoritative in some cases and can also be practical in other cases while a mix of both the theories can result better. The practices of Theory Y can turn out with better results as this will develop confidence and courage among the employees to work in a relaxed and a comfortable environment. For-example, well and high structured call center operations can get a certain amount of benefits by allowing their employees to perform and respond to customers on their comfort and knowledge level. So, by adapting to Theory Y practices they can appreciate and encourage the overall knowledge sharing processes.
The difference between Theory X and Theory Y management is quite noticeable. In my opinion, the management of Theory Y is much more effective and productive than Theory X, as the authoritarian management of Theory X is much adopted in most of the huge firms and organization and leaves less comfortable environment for the employees, whereas most of the organizations allow participative management of the employees which prefer self motivation and appreciate new ideas from the individuals. Considering Theory Y management, many of the organizations use decision making processes, in which each employee has the opportunity to share his thoughts and ideas.
There are basically two major types of democratic decision making, including, persuasive democratic management and consultative
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The author of the paper explains that in Theory X, the management has an assumption that the employees are innately lazy; thus, will circumvent work whenever they can. In addition, the employees avoid responsibility and have little or no ambition unless there is an enticing incentive program.
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