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management provides them with optimum conditions, they excel at work. Theory Y not only builds trust among the employees but also helps build strong decision-making skills. It advocates the idea that every employee is valuable and has his/her say in the organisation’s progress; that every employee has the right to exercise his/her free will and creative independence at work to achieve maximum potential.
Conclusion
Douglas McGregor never expounded upon the two motivational theories with an aim to draw upon a choice between one or another. Both the theories hold their relevance and must be referred to accordingly. No organisation in the world has modelled their management style choosing either Theory X or Theory Y. It is always up to the management to decide how the teams must be led, what actions necessitates success whether being coercive in some situations is the right choice or being compliant is. Differing styles (Theory X or Theory Y) need to be tested and the most effective amongst them must be chosen for efficient management. In any situation, the organisation must not only look for increasing productivity but also ensure that employee well-being is not compromised.
Douglas McGregor never perceived the two theories as canonical laws; he left them open
References
for improvements and improvisation. In his last days he started to work on another theory which was an improved version of Theory X & Y and combined the ideas from both the theories. He called this motivational theory as Theory Z. It was only after his death that William Ouchi elucidated Theory Z by drawing similarities between American style of leadership and Japanese style of leadership. He proposed that organisations should ground their execution in values which is a blend of American and Japanese style of management.
Theory Z promotes not only constant skill refinement of the employees but also advocates fostering long-lasting relationships between them. Employees will only perform better in environments in which they feel secure and safe. Organisations who trust their workers and give them the space to assert their opinions, create such environments. Whether it’s Theory X or Theory Y or Theory Z, management should give a lot of thought before applying any of them, as the outcome will depend not just on the theory, but on its right application.
ABOuT THE AuTHOr
Amit Mishra is an academic associate, Indian School of Business, Hyderabad
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Disclaimer:
The article was first published in Indian Management Journal (Issue 6 Volume 61) an AIMA & Spenta Multimedia publication
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