Leadership Theory in management_Unit 4_BME.pptx

Leadership Theory_Unit 4_BME

1. Douglas McGregor ( 1960), in his book – The Human Side of Enterprise – broadly set out two approaches to human nature which he termed Theory X and Theory Y . McGregor believed that the way people were managed affected their work behaviour and attitudes. He proposed a consultative approach to management as a way to encourage Theory Y behaviour among staff. McGregor’s Theory X and theory Y

2. According to him, Theory X places exclusive reliance upon external control of human behaviour , while Theory Y relies more on self-control and self-direction. McGregor’s Theory X and theory Y

3. People are passive – even resistant to organizational needs. They must be persuaded, rewarded, punished, controlled – their activities must be directed. • The average man is by nature indolent – they work as little as possible • People lack ambition, dislike responsibility and prefer to be led. • They are inherently self- centred and indifferent to organizational needs • They are by nature resistant to change McGregor’s Theory X

4. People are not by nature passive or resistant to organizational needs • People will exercise self-control and self-direction towards achieving the organizational objectives • People are motivated and ready to work and achieve organizational goals • The essential task of management is to arrange organizational conditions and methods of operations so that people can achieve their goals. McGregor’s Theory Y