In the modern corporation environment, employees’ motivation plays a pivotal role, thus they should be recognised as a significant part of corporations’ financial assets. There are several distinct viewpoints of approaches to managerial strategies about motivating employees, one of which is McGregor’s Theory X and Theory Y. It proposes that providing an autonomous environment satisfying employees’ higher needs is more preferable than simply controlling them by rewards and punishment. This essay will firstly evaluate McGregor’s theory. Although influential value of this theory in organization history might be approved, there are two primary issues, invalidity and superficial recognition, which criticisms revolve around. Subsequently, this essay will discuss the extent of this theory’s application in Chinese organizations. Although McGregor’s theory may be employed in few corporations, this theory is generally not applicable in most contemporary Chinese organizations.
Many theorists support that McGregor’s theory considers the field of management from a new angle, indicating a strong influential value. In contrast to the principles of conventional management mentioned as Theory X, the advocated Theory Y illuminated a cluster of new or redefined concepts such as self-fulfilling prophecy and responsibility. According to Carson (2005), some of those concepts had been interpreted before; however, McGregor’s theory combined those concepts emerging from separate theories. Based on these compiled conceptions, this theory takes higher-order needs into consideration, which innovatively introduces a profound work value that management should not only involve controlling and monitoring. Moreover, the inclination to responsibility of employees contributes to participative atmospheres in working environment. Lerner (2011)