The Foundations of Theory X and Y - Essay Example

Theory X and Theory Y Introduction Theory X Theory Y was developed in the 1960 by a management Douglas McGregor (Miller 2009). It is a motivation theory that is used in organizations by the HR managers to understand the behavior of employees. The theory can also be used to understand the organizational behavior as well as organizational development and communication. It is a famous theory in modern management. It describes human behavior in two contrasting views. It views employees in both negative and positive view. The theories were based on a number of assumptions which a manager can use to motivate his employees (Koontz and Weihrich 2007). Managers who apply theory X in their management practices believe that employees do not like work. People are generally lazy and do not like responsibility. They avoid work and lack ambition and as a result, managers have to direct them and force them to work. On the other hand, managers who apply theory Y believe that employees are self -motivated, like work and are responsible. However, according to Carson (2005), “McGregor did not originate these ideas; he just made them easy for practitioners to use and implement in their work environments.” This paper discusses Carson’s view in the context of the history of management and also evaluates the relevance of McGregor’s theories to the contemporary leisure industry. Early foundations of theory Y The foundations of theory Y can be traced back to as early as 1690. The initial ideas of the theory were introduced by Locke in the year 1690 and Smith 1776. The philosophy by Locke was law based. The four ideas in his philosophy were; law based on purpose rather than arbitrary, government deriving powers from its citizens, freedom to pursue personal objectives as a natural right, as well as use of private property in search of happiness as a legally protected and natural right. These ideas have a connection with theory Y in that they all focus on an individual (Carson 2005). It is important to note that theory Y and theory X focus on individual behavior and their motives to work. Locke suggested that power, legal matters and liberty are influential at personal pursuance of goals and objectives. People need to be given the freedom to do their own things. He argued that individuals use their own properties in order to pursue happiness and objectives and they should not be dictated on how to achieve that fate. This is the same manner with which McGregor placed his theory. He argued that managers do not have to put much pressure on employees for them to perform. Instead, they should have faith in them. Each individual employee should be given a responsibility and the employer should trust him or her with it. Employers and managers should give employees freedom to carry out their duties (Lussier and Achua 2010). Smith presented an idea similar to that by Locke in that it focused on freedom. His liberal economics were developed in a period when there was less government control and interjection. The government interjection was similar to the assumption in McGregor’s theory X that people do not like work, have little ambition and tend to avoid responsibility. Smith advocated for a free market that gives an opportunity for competition. For a free market to be achieved, people should be accorded the liberty to make decisions on their own (Lusch and Vargo 2006). This was a foundational idea to the assumption by McGregor in his theory Y which indicated that managers do not have to input external control or threat of punishment to make employees work towards achieving the organizational objectives. He suggested that man has the ability to exercise self- control as well as self- direction towards achieving the goals to a service in which they are committed (Carson 2005). Further foundation to McGregor’s theory was developed when Owen in the year 1857 expressed his beliefs that workers are a valuable asset to an organization. He felt that managers should realize the value in employees and stop neglecting them. His aim was to improve the conditions under which employees work. He was also determined to advocate against children labor as well as improvement of the economic conditions in which poor people live. In addition, Owen wanted to find a solution to high rates of unemployment (Packard 2010). The idea by Owen was parallel to an assumption by McGregor in his theory Y. The theory states that an organization should not ignore its employees’ personal goals and objectives since otherwise it is likely to suffer (Carson 2005). The idea by Owen to improve the condition of workers was actually considered being the initial step towards the development of theory Y. Among the early advocates of theory X was Henry Varnum Poor. He emphasized on bureaucracy in organizational structures. However, he later realized that theory X which was being applied in the railroad industry where he was working was not as effective as he would wish. He supported responsibility as well as accountability for employees (Riegel 1967). This was not possible due to lack of unity among employees and as a result, he proposed that the leadership style be changed to form a more energized and unifying. He felt that unity would bring accountability in an organization. His idea would well be incorporated in theory Y where employees need to be given responsibility so as to perform for the organization. Another management theorist from whom McGregor borrowed idea is Fredrick Taylor. Taylor is known to be the father of scientific management. He aimed to get the best out of employees. He treated the employees fairly and always had their interests in mind (Taylor 1972). The idea of treating workers fairly was incorporated in theory Y. One of the assumptions of the theory was “The expenditure of physical and mental effort in work is as natural as play or rest.” (Miller 2009) The aim of Taylor’s leadership style was to create a good relationship with employees. This would help them to give the best in their work and hence improve the organizational performance. This kind of cooperation is similar to the one needed in the case of theory Y where employees have to be allowed the freedom to make their own decisions. This is only possible where there is good cooperation between the employer and the employee (Carson 2005). It is imperative to note that despite the fact that Taylor took a step towards development of theory Y, he did not advocate for increased responsibility to workers. Later in the 20th century, most managers started to see the need to create a good relationship with employees if they wanted to get the best out of them. A movement that was aimed at transforming personal work was formed and it later developed to become the modern human resource department. This enabled workers to have a feeling that they were valued and hence it motivated them to work at their best. McGregor then concluded all the previous ideas by previous economists and managers into theory Y and made it more practicable (Carson 2005). He stated that human beings need to be in good conditions for them to learn. In addition, they are able to seek more responsibility if subjected to the right conditions. This theory was appreciated by other sociologists and they realized that it could be achieved and could lead to improved employees’ performance hence better organizational performance. They started implementing it into organizational management. The integration between employees and employers motivated the employees making them work hard. It has been used to date by managers of some of the best performing organizations and industry. The theory can successfully be implemented in the leisure industry. Relevance of McGregor’s theories to the contemporary leisure industry Leisure industry is an industry that is concerned with entertainment as well as products and services related to tourism and recreation. It is an industry generates a lot of income to the world economy (Baum 2006). People like to have recreation after long and stressing working days. As a result, the demand for leisure is on the rise. The competition among organizations that offer leisure, recreation and tourism services have also increased. Theory Y can be used by managers to harness the employees’ motivation for better performance of any organization. In the leisure industry, employees’ motivation is vital. Once employees are motivated, they can offer good services hence more people are likely to buy the services. It is therefore paramount that McGregor’s theory is highly relevant in this industry. Discussed below are the ways in which theory Y can improve the performance of the leisure industry (Baum 2006). Decentralization and delegation of duties by managers is important since it relieves them off some of the activities they have to perform. He is able to perform other important managerial duties. The subordinates to whom the duties are delegated are given responsibilities and a chance to participate in organizational decision making. This motivates the employees as they feel they are part of the organization (Rees and Porter 2008). Another aspect of theory Y is job enlargement. The scope of work employees are supposed to perform is broadened. They get a chance to learn more about the job. Consequently, they will be in apposition to add more value to the work they do. Their ego needs are satisfied and hence they can fully focus on their jobs. That way, they can offer best services in the leisure industry hence attract many customers (Rees and Porter 2008). Creativity is a vital component in the entertainment industry. Workers should therefore be highly creative so as to provide quality services. This can be achieved through participative management where employees are involved in decision making processes. It gives them an opportunity to sharpen their creativity skills (Rees and Porter 2008). All these factors result to employees’ motivation. In the leisure industry, one of the biggest challenges that managers face is high employees’ turnover. In these industries, specifically in hotels and restaurants, employees work for long hours since customers keep on coming in for services at any time. They therefore need to be motivated so as to work for such long hours. The high turnover problem can be addressed through motivating employees. If managers in this industry can apply the McGregor’s motivation theory, they can retain their employees. Consequently, this increases consumer satisfaction (Baum 2006). Conclusion Motivation is important in improving employees’ performance in any organization. McGregor was one of the great managers who ever lived. He developed the famous theory X theory Y which is applied by most organizations. The theory has two contrasting sides where one indicates that power has to be used on employees for them to work. The other side indicates that employees need to be subjected to favorable working conditions for them to produce good results. It indicates that employers should work in cooperation with the employees. This is the theory that is being applied in most modern organizations and it is highly effective. It is relevant to the leisure industry and can be used to get the best out of employees and improve the organizational performance. Reference List Baum, T, 2006, Human resource management for tourism, hospitality and leisure: An international perspective, Thomson Learning; London. Carson, C M, 2005, A 0historical view of Douglas McGregor's Theory Y, Management Decision, Vol. 43 Iss: 3, pp.450 – 460 Koontz, H, and Weihrich, H, 2007, Essentials of management: An international perspective, Tata McGraw-Hill; New Delhi. Landy, F J, and Conte, J M, 2010, Work in the 21st century: An introduction to industrial and organizational psychology, Wiley-Blackwell; Malden, Mass. Lusch, R F, and Vargo, S L, 2006, The service-dominant logic of marketing: Dialog, debate, and directions, M.E. Sharpe; Armonk N.Y. Lussier, R N, and Achua, C F, 2010, Leadership: Theory, application, skill development, SouthWestern/Cengage Learning; Australia. Miller, K, 2009, Organizational communication: Approaches and processes, Wadsworth Cengage Learning; Boston, MA. Packard, F, 2010, Life of Robert Owen. Applewood Books. Rees, W D, and Porter, C, 2008, Skills of management, Cengage Learning; London. Riegel, R E, 1967, The Story of the Western Railroads: From 1852 Through the Reign of the Giants, Bison; Lincoln. Taylor, F W, 1972, Scientific management: Comprising: Shop management; The principles of scientific management ; Testimony before the Sspecial House Committee, Routledge; London. Read More