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Douglas McGregorDouglas McGregorDouglas Murray McGregor(1906 1 October 1964) was amanagementprofessor at theMIT Sloan School of Management and president ofAntioch Collegefrom 1948 to 1954. He also taught at theIndian Institute of Management Calcutta. His 1960 bookThe Human Side of Enterprisehad a profound influence on education practices.

He earned aB.E. (Mechanical)from Rangoon Institute of Technology, anA.B.from Wayne State Universityin 1932, then earned anM.A.andPh.D.in psychology fromHarvard Universityin 1944 and 1955 respectively.Douglas McGregor

Remarkable Contribution to Management

The Human Side Of Enterprise- 1960

In the bookThe Human Side of Enterprise, McGregor identified an approach of creating an environment within which employees are motivated via authoritative, direction and control or integration and self-control, which he calledtheory X and theory Yrespectively.From the book1. Theory X and Theory Y 2. Theory Xs Principles3. McGregors Remarks on Theory X4. Theory Ys Principles5. McGregors Remarks on Theory Y6. McGregors Suggestions to Perform Theory Y

Theory X and Theory Y are two sets of assumptions about human nature and behavior that are related to the practice of management. Theory XRepresenting a negative view of human nature that assumes people generally are naturally irresponsible for their work and require close supervision to do jobs.Theory Y Indicating a positive view of human nature that assumes people are generally hard-working, creative and responsible for exercising self-control over their jobs. Theory X and Theory Y Theory Xs PrinciplesManagement is responsible for organizing the elements of enterprise including production, capital, materials, facilities and employees. 2. In terms of employees, management is a process of directing their efforts, motivating them, controlling their actions, and modifying their behavior to fit the needs of the organization. 3. Without effective management, employees would be passive even resistant to organizational needs. Hence, they must be advised, rewarded, punished, and controlled. Their activities must be directed. Theory Xs PrinciplesHow Managers Behave

Theory Xs PrinciplesHow Employee Feels for Manager

Theory Xs PrinciplesHow Employee Feels

McGregors Remarks on Theory X It is of "hard" management whose methods involve close supervision, rigid control and compulsion. It would lead to restriction of output, mutual distrust and even sabotage.

Theory Ys PrinciplesEmployees are not by nature passive or resistant to organizational needs. They have become so as a result of experience in organizations. 2. Employees, by nature, have the motivation, potential for development and capacity for assuming responsibility and readiness to direct behavior toward organizational goals. It is the responsibility of management to make it possible for employees to recognize and develop these human characteristics for themselves.3. The essential task of management is to arrange organizational conditions and methods of operation so that employees can achieve their own goals by directing their efforts toward organizational objectives.Theory Ys PrinciplesHow Managers Behave

Theory Ys PrinciplesHow Employee Feels

McGregors Remarks on Theory Y It is of "soft" management whose methods as tolerance and need satisfaction. It can lead to more effective management of employees in the organization.

McGregors Suggestions to Perform Theory YManagement should have employees higher level needs met in the workplace. 2. Close supervision and the threat of punishment are not the proper means for encouraging employees to exercise productive efforts. 3. Some opportunities should be provided such as allowing employees to make decisions, redesigning jobs to make them more challenging or emphasizing on good working relations.

Practice of Theory X and Theory Y 1. Significance of Theory X and Theory Y2. Arguments: Which is More Effective, Theory X or Theory Y?4. Criticism of Theory Y 5. Theory X and Theory Y in the 21st Century 3. Effects on Management

Significance of Theory X and Theory Y In the late 20th century, Theory X & Theory Y was considered as the basis for management style and employees motivation. When it comes to the 21st century, Theory X & Theory Y is still studied as to develop greater understanding of modern management ideology such as job enrichment, job-characteristics model and self-managed work teams.

Arguments: Which is More Effective, Theory X or Theory Y?Arguments: 1. Organizations putting Theory Y into practice tend to go back to Theory X in hard economic times. 2. Theory Y is not always more effective than Theory X. 3. Unforeseen events of each managerial situation determine whether Theory X or Theory Y was proper.

Effects on Management Theory X: 1. Managers leadership styles are autocratic and the communication flow is downward from managers to the employees. This may cause resistance from employees. 2. The upper setting of objectives gets little or no participation from employees. 3. It results in outside, control, with the manager acting as a performance judge who focuses generally on the past.

Theory Y:1. It may lead to cooperative objectives designed with input from both employees and managers, resulting in a stronger responsibility by employees for accomplishing the shared objectives. It encourages leadership styles to be more participative and allows employees to seek responsibility for achievement of goals. Theory Ys leadership is likely to improve communication flow, especially in the upward direction. It leads to control processes based on employees self-control. The manager is more likely to act as an instructor rather than a judge who focuses on how performance can be improved in the future rather than on who is responsible for past performance. Effects on Management Criticism of Theory YRather than concern for employees, Theory Y style managers are simply engaged in an attractive form of management. Sometimes, managers better match work tasks to basic human motivation through participative management, job enlargement and other programs based on Theory Y. Actually, managers still focused on measures of productivity rather than employees interests. It is a patronizing plan for bringing increased productivity from employees. Unless employees shared in the economic benefits of their increased productivity, they are just fooled into working harder for the same pay.

Theory X and Theory Y in the 21st Century McGregors works on Theory X and Theory Y have had a great impact on management ideology and practice. They have been included in most basic management books. These books are still facing people of management today. As for the practice of management, the workplace of the 21st century, which emphasizes on self-managed work teams and other forms of worker involvement programs, generally goes with the principles of Theory Y.

Thank you!Team Members-

NameSandeep BanerjeeSmita DattaPratik Kumar GhoshParas PatelSaurav Kumar PolleySreyasi ChakrabortyAishik SahaArinaz Cyrus Dastur