Page 47 - AIMA : Foundation Day Souvenir

PICK yOur STylE
McGregor’s Theory X and Theory Y are good reference points for managements to decide on their style of leadership.
Amit Mishra, Indian School Of Business, Hyderabad
Theory Y and understand its application and how differing management styles have lasting impacts on the employees working in the organisation.
Theory X
Douglas McGregor ideas on Theory X management style emanated from his earlier. works on classical management theory. The roots of Theory X lie in the notion that employees are inherently lazy and will dodge their work whenever they find an opportunity. The onus then lies on the reporting managers to keep the employees in momentum, give them direction, continuously motivate them, or penalise them as the situation demands. This theory proposes that employees lack drive and stay in their comfort zones. Therefore, they require a management system in which they are led and controlled by their supervisors, while being subjected to threats and punishments. Theory X also tends to promote authoritarian leadership style within the organisation which creates a lack of trust among the peer group.
Theory y
Theory Y is defined as an alternate management principle to Theory X, deemed as a more optimistic leadership approach X. It proposes that employees working in the organisation are not lazy and are always looking for opportunities to upskill and rise up in the hierarchy. It is always for the supervisors to provide the employees with ample freedom and opportunities, so that the latter can align themselves to the company’s vision and achieve organisational goals cohesively. Contrary to Theory X, Theory Y states that employees dislike lack of freedom and controlled decisionmaking mechanism in the organisation. It also states that employees always look for meaningful work, they look for ways to take responsibility, and if the
Organisations built to stand the test of times would always embrace adaptability. The changing patterns of industry demand a leadership style that not only helps the organisation grow, but also ensures that the employees feel comfortable and connected ceaselessly. The leadership style thus must be dynamic with changing times. The bone of contention always lies within a perfect idea of leadership, that there must be a single way to the apotheosis, albeit the most debated of the ideas. The reality is, a transformational leadership style imbibes within melanges of effective values that set the base for resilient organisations. The paper is an attempt to explore the ideas of Douglas McGregor on Theory X and
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