Application of theory x and y pdf

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application of theory x and y pdf

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The purpose of this research paper is to study the application of well-known theory X and theory Y in the banking sector of Bangladesh based on the perception of management toward the employees. Analyzing the perception of the management seems rational as banking job appears highly paid, high target oriented, stressful job now where employee satisfaction is significantly related with how management handle them from their perception toward the employees. Primary data has been collected from managers selected randomly through quota sampling who are serving inseveral branches of different banks surrounding all over the country 8 divisions and secondary data has been collected from some banking reviews and literature reviews.

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McGregor's Theroy X and Theory Y in Management

The paper identifies major management approaches cited by McGregor as being examples of his Theory Y management principles. The paper traces the historical development of each of these approaches and their application today. This paper reviews McGregor's original article, then traces the historical development and application of McGregor's major concepts through the identification and review of relevant historical and contemporary literature. Major findings provide strong evidence that McGregor's Theory Y concepts and related management approaches have grown in application, are closely related to appreciative inquiry and social construction. There is also evidence that McGregor's concept of management may be universal and has application across national cultural boundaries. The findings indicate that McGregor's concepts have widespread acceptance and application today, and have been systematically and empirically related to organizational success and effectiveness.

During the past 30 years, managers have been bombarded with two competing approaches to the problems of human administration and organization. The first, usually called the classical school of organization, emphasizes the need for well-established lines of authority, clearly defined jobs, and authority equal to responsibility. The second, often called the participative approach, focuses on […]. The second, often called the participative approach, focuses on the desirability of involving organization members in decision making so that they will be more highly motivated. The classical organizational approach that McGregor associated with Theory X does work well in some situations, although, as McGregor himself pointed out, there are also some situations where it does not work effectively. At the same time, the approach based on Theory Y, while it has produced good results in some situations, does not always do so.


Although influential value of this theory in organization history might be approved, there are two primary issues, invalidity and superficial recognition, which criticisms revolve around. In contrast to the principles of conventional management mentioned as Theory X, the advocated Theory Y illuminated a cluster of new or redefined concepts such as self-fulfilling prophecy and responsibility. Based on these compiled conceptions, this theory takes higher-order needs into consideration, which innovatively introduces a profound work value that management should not only involve controlling and monitoring. Moreover, the inclination to responsibility of employees contributes to participative atmospheres in working environment. Therefore, this theory, revealing an initial pattern of management strategy, dramatically influences the applied field of organization development. McGregor has pointed out that theory X management assumes that people generally are not responsible for work in contrast to theory Y assuming that people are invariably self-controlled.

Work is changing. And the approach to and requirements of leadership are changing with it. The modern manager knows how to distribute responsibility, instill trust in their employees, and motivate team members to deliver their best work and ideas. But there are times when management is less about leadership and more about the staunch enforcement of rules and micromanagement of production. These differing management styles have been coined in the academic management community as Theory X and Theory Y. Because employees have historically been given a flat exchange of time and energy for income, workplace incentives have often been rooted in a fear of loss of employment, in earning potential from extra productivity, or in acquiescing to managerial dominance for promotion. Theory X managers are likely to believe that employees are lazy, fear-motivated, and in need of constant direction.

Theory X and Theory Y (Douglas McGregor). Douglas McGregor in his it can invest time, money and effort in developing improved applications of the theory.

Managerial Belief Systems: Douglas McGregor’s Theory X vs Theory Y

He did not imply that workers would be one type or the other. Rather, he saw the two theories as two extremes - with a whole spectrum of possible behaviours in between. The management implications for Theory X workers were that, to achieve organisational objectives, a business would need to impose a management system of coercion, control and punishment. Depending on the working conditions, work could be considered a source of satisfaction or punishment.

Beyond Theory Y

These theories are based on the premise that management has to assemble all the factors of production, including human beings, to get the work done. McGregor believed that management can use either of the needs to motivate his employees, as grouped under theory X and theory Y. But however, the theory Y yields better results than the theory X, how? Theory X: Theory X relies on the authoritarian style of management, where the managers are required to give instructions and keep a close check on each employee. As it is assumed, the employees are not motivated, and they dislike working. This theory is based on the following assumptions:. Theory Y: Theory Y relies on the participative style of management, where the managers assume that the employees are self-directed and self- motivated to accomplish the organizational objectives.

Theory X and Theory Y are theories of human work motivation and management. The two theories proposed by McGregor describe contrasting models of workforce motivation applied by managers in human resource management , organizational behavior , organizational communication and organizational development. Theory X explains the importance of heightened supervision, external rewards, and penalties, while Theory Y highlights the motivating role of job satisfaction and encourages workers to approach tasks without direct supervision. Management use of Theory X and Theory Y can affect employee motivation and productivity in different ways, and managers may choose to implement strategies from both theories into their practices. McGregor also believed that self-actualization was the highest level of reward for employees.

It was in that Douglas McGregor first proposed the concept of Theory X and Theory Y in to offer to business and management readers a clear overview of McGregor's ideas, their use, (Accessed: 21 July ).

Theory X and Theory Y


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