Schools of Management Thought:

Theory X & Theory YJocelyn Aleman, Jessica Baliwalla, Shadi Laghai,

Anton TsyhanokBOH4M

Origin of the Theory• A business management strategy developed by social

psychologist Douglas McGregor• First wrote of theory in his book “The Human Side of

Enterprise” in 1960• McGregor believed that Theory X dominated in the 1960s• McGregor believed that managers should follow Theory Y

By Jocelyn Aleman

Group Production Activity:Manager Instructions

Purpose: Your group must create as many smiley faces as possible in the allotted time.

• Divide into your respective groups, either Group X or Group Y.• One individual in each group is the manager, which is on their slip of

paper. • Using the materials provided, create as many smiley faces as possible

within a minute and a half.• If you produce the most smiley faces, there are prizes.• For Group X, the manager will win the prizes of everyone in the group.• For Group Y, everyone in the group will win a prize.

By Jessica Baliwalla

Theory Y

Theory X

Core Beliefs of Theory X • Authoritative (autocratic) method of management• Managers make assumptions about their workers• Often have a hierarchy structure, so that they can have complete

control over their workers.• Managers that use this style of management are often task oriented,

emphasize on productivity and often don’t concentrate on creating positive relationships

• People working for these types of managers are often motivated by either fear or money and often feel unappreciated

By Anton Tsyhanok

Core Beliefs of Theory Y• Managers tend to be participative when making decisions,

and value both results and relationships• Priorities will be given to developing positive work

environments, and expressing regular recognition and appreciation

• People working for these managers tend to feel appreciated and dignified

• Workers generally have good morale and feel motivated.

By Anton Tsyhanok

Limitations of the TheoryTHEORY ‘ X ’

• Only fulfills lower needs (money and job) and higher needs (job satisfaction)

• Workers may not be able to develop and apply their full capabilities

THEORY ‘ Y '

• Some workers need the structure and instruction of the Theory X manager

• Impossible to create an environment that benefits and pleases everybody

By Shadi Laghai

Limitations of Both• Restricted to only the two theories• A lot of assumptions and generalizations about

the two theories• Most managers are a mix of Theory X and Y• Theory X and Y may each be better fits in

different circumstances

Works Consulted "Biography: Douglas McGregor." University of Western Ontario.

N.p., n.d. Web. 18 Oct. 2013. Cunningham, Robert A. "Douglas McGregor – A Lasting Impression."

Ivey Business Journal. N.p., Sept.-Oct. 2011. Web. 21 Oct. 2013.

Expertprogrammanagement.com. "Theory X and Theory Y." Expert Program Management. Expertprogrammanagement.com, 2011. Web. 21 Oct. 2013.

Fong, Kenny. "McGregor's Theory X Theory Y & Maslow's Hierarchy of Needs." Comm in Workplace. N.p., 19 Mar. 2012. Web. 21 Oct. 2013.

"Idea: Theories X and Y." The Economist. N.p., 6 Oct. 2008. Web. 18 Oct. 2013.

Morse, John J., and Jay W. Lorsch. "Beyond Theory Y." Harvard Business Review. N.p., n.d. Web. 21 Oct. 2013.

Yong, Jonathan. "The Limitations of Theory X and Theory Y." CommunicateSmart. N.p., 26 Mar. 2012. Web. 21 Oct. 2013.