BA 201n: Organizational Theory
Professor Elmer P. Nacua
July 20, 2013
LEARNING INSIGHTS ON
THEORY X / Y / Z AND MASLOW’S HEIRARCHY OF NEEDS
McGregor’s Theory X / Y and William Ouichi’s Theory Z
I can say that Theory X presents the pessimistic view of employees’ nature and behaviour at work, while Theory Y presents the optimistic view. With reference to Maslow’s theory, Theory X is based on the assumption that the employees emphasize on the physiological needs and the safety needs; while Theory Y is based on the assumption that the social needs, esteem needs and the self-actualization needs dominate the employees.
Implications of Theory X and Theory Y
Theory X encourages use of tight control and supervision that is why quite a few organizations use Theory X nowadays. It implies that employees are reluctant to organizational changes. Thus, it does not encourage innovation. We see this form of management commonly in small family owned or privately and single person owned small corporations.
Many organizations are using Theory Y techniques. Theory Y implies that the managers should create and encourage a work environment which provides opportunities to employees to take initiative and self-direction therefore the direction is towards decentralization of authority, teamwork and proactiveness. Employees therefore should be given opportunities to contribute to organizational well-being. Theory Y searches and discovers the ways in which an employee can make significant contributions in an organization. It harmonizes and matches employees’ needs and aspirations with organizational needs and aspirations.
Theory Z
Though Theory Z is not a Mcgregor idea nor is it an extension of his XY theory. It is often referred to as the 'Japanese' management style, which is essentially what it is. Interesting it is though that Ouchi chose to name his model 'Theory Z', which give the impression that it's a Mcgregor idea. Nevertheless, Theory Z essentially