What do people want in the workplace? Douglas McGregor’s work examined the implications of the different answers that managers give to this question. His thinking pervades many modern ideas of management.

Management thinkers like Kurt Lewin and Elton Mayo started to identify the crucial importance of paying attention to people’s motivations at work. McGregor brought the divide between these thinkers and earlier ideas of ‘scientific management’, (or Taylorism), into sharp relief, by delineating two polar opposite theories of how we behave at work.

In The Human Side of Enterprise, McGregor called these theories Theory X and Theory Y. He asserted that the assumptions managers make about the people they lead would largely determine how their organisations operate. Theories X and Y set out the two extremes.

Theory X posits that we dislike work and will do whatever we can to avoid it. Therefore, our managers need to coerce, cajole or bribe us to secure our compliance. We want an easy life and prefer direction to thinking for ourselves, and we crave security. We abjure responsibility and will blame others for any failings in our organisation or ourselves.

Theory Y, however, assumes that we see work as a natural part of life, so we may as well get the most out of it that we can. We thrive when we feel trusted, and we are willing and able to offer new ideas, think for ourselves, take responsibility and give our commitment.

McGregor believed that when managers follow Theory X, they become autocratic and controlling. Consequently, staff become bored and  frustrated and rebel against the control, thus confirming their managers’ Theory X beliefs. Instead, McGregor argued that Theory Y management leads to a more co-operative workforce, and consequently a more productive one.

Critics argue that Theories X and Y are too simplistic and too extreme – Theory X too pessimistic and Theory Y too idealistic. This misses the point: they are intended to represent extremes. While his work is not so often quoted now, recent thinkers like Warren Bennis and Tom Peters are highly influenced by him. Their work has focused on employee satisfaction, ownership of ideas and the acknowledgement and celebration of success. All of these are Theory Y concepts.

Readers may also be aware of Theory Z. McGregor started work on this towards the end of his life, as a reconciliation of the two opposing theories. William Ouchi revived these ideas, and published Theory Z in 1981. This looked at how Japanese management ideas had been adopted by some US companies to create a culture of long-term careers, respect between employees and management, and participative decision-making.

For trainers and coaches, these ideas present less of a solution than a jumping-off point for a discussion. They can still act as a powerful stimulus to help managers and leaders to identify their own understanding and develop their management style accordingly.

References:

1. The Human Side of Enterprise Douglas McGregor, McGraw Hill Higher Education, 1960
2. Theory Z Corporations: How American Business Benefits from Japanese Management Models William Ouchi, Perseus Books, 1981

Dr Mike Clayton founded Thoughtscape to offer coaching, training and facilitation, with a focus on managing and leading in the context of change. He can be contacted at mike@thoughtscape.net.

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