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Principles of Management: Assignment ON

The document summarizes McGregor's Theory X, Theory Y, and William Ouchi's Theory Z. Theory X assumes that people inherently dislike work and must be coerced to work through punishment and control. Theory Y assumes that people can exercise self-direction and creativity to achieve organizational goals, especially if properly committed. Theory Z draws from Japanese management styles, assuming job security, trust between employees and management, group decision-making, team-based work and motivation, and long-term career progression rather than individual targets.

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106 views5 pages

Principles of Management: Assignment ON

The document summarizes McGregor's Theory X, Theory Y, and William Ouchi's Theory Z. Theory X assumes that people inherently dislike work and must be coerced to work through punishment and control. Theory Y assumes that people can exercise self-direction and creativity to achieve organizational goals, especially if properly committed. Theory Z draws from Japanese management styles, assuming job security, trust between employees and management, group decision-making, team-based work and motivation, and long-term career progression rather than individual targets.

Uploaded by

shivani
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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PRINCIPLES OF

MANAGEMENT
ASSIGNMENT
ON
THEORY X, Y AND Z

Roll No: 1710108


BOOK NAME: Essentials of Management
AUTHORS: Harold koontz and Heinz weihrich
Page no.s: 303-305
MC Gregor’s Theory X and Theory Y
Another view about the nature of people has been expressed in two sets of
assumptions developed by Douglas McGregor’s and commonly known as
Theory X and Theory Y. Managing ,McGregor suggested, must start with the
basic question of how managers see themselves in relation to others. This
viewpoint requires some thought on the perception of human nature. Theory X
and Theory Y are two sets of assumptions about the nature of people. Mc
Gregor chose these terms because he wanted neutral terminology without any
connotation of being “good” or “bad”.
Theory X assumptions: The “traditional” assumptions about the nature of
people, according to McGregor, included in Theory X as follows:
1. Average human beings have an inherent dislike of work and will avoid
it if they can.
2. Because of this human characteristic of disliking work, most people
must be coerced, controlled, directed, and threatened with
punishment to get them to put forth adequate effort towards the
achievement of organisational objectives.
3. Average human beings preferred to be directed, wish to avoid
responsibility, have relatively little ambition, and want security above
all.
Theory Y assumptions : The assumptions under Theory Y are seen by
McGregor as follows :
1. The expenditure of physical effort and mental effort is as natural
as play or rest.

2. External control and threat of punishment are not the only means
for producing effort towards organisational objectives. People will
exercise self direction and self control in the service of objectives
to which they are committed.

3. The degree of commitment to objectives is in proportion to the


size of the rewards associated with their achievement.

4. Average human beings learn, under proper conditions, not only to


accept responsibility but also to seek it
5. The capacity to exercise a relatively high degree of imagination,
ingenuity, and creativity in the solution of organisational problems
is widely, not narrowly, distributed in the population.

6. Under the conditions of modern industrial life, the intellectual


potentialities of the average human being are only partially
utilised.

The two sets of assumptions obviously re fundamentally different.


Theory X is pessimistic, static and rigid. Control is primarily external, that
is, imposed on the subordinate by the superior. In contrast, Theory Y is
optimistic, dynamic and flexible with an emphasis on self direction and
integration of individual need with organisational demands. There is
little doubt that each set of assumptions will affect the way managers
carry out their managerial functions and activities.

William Ouchi ‘s Theory Z:


William Ouchi is an American professor of business management who
has worked at the Stanford business school and the Anderson School of
Management at the University of California for many years. He first
came to prominence in 1981 for his work on bridging the gap between
American management, then in decline, and Japanese management,
then riding a boom. His belief that American business could learn from
the management beliefs of Japanese industry led to his idea of Theory Z
and his first book, "Theory Z: How American Management Can Beat the
Japanese Challenge". The book became a New York Times best-seller
and today ranks as the 7th most widely-read business book in all US
libraries. His theory is now regarded as influencing the management
style of major organisations such as IBM, Procter and Gamble and
Hewlett Packard.

The Different Assumptions Between American and Japanese


Management
Just as Douglas McGregor's theory X and Y were based on management
assumptions about people, so too is Ouchi's Theory Z approach. Here are
5 Theory Z principles.

1. Job Security

The Japanese Theory Z approach believes that people are a far too
valuable resource to be lost when the economy has a downturn. In a
recession, the Japanese don't fire people, they'll reduce their hours until
things pick up. By contrast, when a US company is in trouble, they waste
no time laying people off and as a result lose all the knowledge, skills,
and expertise that go with them.

2. Trust

the Japanese feel that you should never give people a reason to distrust
you. Loyalty is expected of all employees. In American companies,
distrust and suspicion are endemic. If a person or supplier is not
delivering, the company will go elsewhere for a better deal.

3. Decision-Taking

There is two differences between the Japanese and American


approaches to decision-making. In Japanese companies, everyone gets
involved in the decision-taking process as part of their commitment to
the organisation. As a result, the process is slow. In the US, decision-
taking is the responsibility of the few and so is quick.

4. Teamwork

In Japan, organisational success is viewed as the result of team effort, so


it is illogical to reward individuals. In the US, there is still a belief that, if
you do the work and claim the results, you should get the reward.

5. Motivation and Target-Setting

the Japanese corporation rarely sets individuals targets as a way of


motivating them. They believe that individual motivation comes from
others in the team. As a result, it often takes years before a Japanese
employee receives their first performance evaluation and even longer
before they are promoted. By contrast, the American corporation
believes that the role of management is to set their subordinates targets
and ensure that these are met, using evaluation and promotion as
incentives and rewards.

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