How to manage people2004-6-9 UnderstandingTheoryXandTheoryYIn1960,DouglasMacGregorwroteabookcalledTheHumanSideofEnterprise,inwhichhedescribedtwodifferenttheoriesofemployeemotivation.Henoticedthatmanagersuseddifferentwaystogetthemostoutoftheirstaff.Somemanagerstreatedemployeesharshly,moreorlessforcingorscaringthemintoperformingtheirduties.Othermanagersusedpersuasionandrewardstomotivate.MacGregorclaimedthattheserepresentedtwodifferentviewsofhumanmotivation,whichhecalledTheoryX,andTheoryY.TheoryXTheoryXisbasedontheideathatpeopleworkonlybecausetheyhavenochoice.Theydoitbecausetheyneedthemoneyandthesecurity.Workofferslittlerewardtomostpeople,otherthanthepayattheendofthemonth.TheoryXalsoclaimsthatpeople:-Willnormallytrytoavoidwork-Havelittleambition,anddonotliketotakeresponsibility-Wouldprefertofollowthantolead-Resistchange-ArenotparticularlycleverWithinTheoryX,amanagercantakeahardapproachorasoftapproach.Thehardapproachinvolvesthreats,punishments,pressure,andtightcontrol.Theproblemwithitisthatitcancreatehostilityandconfrontation.ThesoftapproachtoTheoryXismorepermissive.Managerstakelesscontroloveremployeesandhopethattheywillcooperatewhennecessary.Theproblemwiththisisthatcanleadtoincreasingdemandsforrewards,coupledwithdecreasingproductivity.Eitherway,MacGregorsuggestedthatTheoryXwasnotanoptimumwaytoapproachemployeemotivation.InsteadherecommendedTheoryY.TheoryYTheoryYisbasedontheideathatpeopleseekmorefromworkthanjustthemoney:self-esteem,theneedtobepurposefullyengagedinactivities,forexample.Thepurposeofmanagementistoliberatethosepositiveinstinctsandusethemtowardsachievingthecompanysobjectives.TheoryYrestsontheideathat:-Theurgetoworkisasnaturalastheurgetoplayorrest.Peopledonotinherentlydislikework.-Externalcontrols,aswellasthreatsandpunishments,arenottheonlywaystomotivatebehavior-Theaveragehumanbeing,undertherightcircumstances,learnsnotonlytoaccept,buttoseekoutresponsibility-CreativityandingenuityarecommonhumancharacteristicsWhichtheoryiscorrect?Boththeorieshavesometruthtothem.TheoryYismorelikelytoapplytoateamofprofessionalmanagersthanonafactoryfloor.TheoryYalsocreatesthepossibilityofgroupproblemsolving.Clearly,itisbettertogetpeopleonboard,togetthemtosupportthecompanyobjectives,thantocreateconfrontationalrelationshipswithstaff.However,thistakestimeandmanagementexpertise.Editon2004-10-22