ࡱ> q` wIbjbjqPqP .::tA,dX\X\X\X\l\4~^LP^P^P^P^/_&U_i_ }}}}}}}$h}+m+_/_+m+m}P^P^}ooo+m08P^P^}o+m}oo:r,rP^] ,7AX\[n3r u }0~=rRorrut u_kco?fDhu_u_u_}}ou_u_u_~+m+m+m+m/MM|(  There have been many theorists in relation to management in the last half a century. Some of the prominent figures in regards to management theory include Maslow- Heirarchy of Needs, Adams- Equity Theory of Motivation or Herzsbergs Motivator-Hygiene Theory. While these individuals and their respective theories have good validity as well as complexity, two theorists come to mind when you are dealing with a simplistic view of how workers are perceived by their managers. Thomas McGregor- Theory X & Y and William Ouchi- Theory Z have developed a systematic, basic view of managements perception on the work force and the work forces view on their role in the company. In an attempt to compare and contrast both McGregor and Ouchi, we will first illustrate their management theories and then decipher the similarities and differences pertaining to both theorists. William Ouchi Theory Z We will begin with Ouchi, it must be noted that Theory Z is not an extension of McGregors X&Y Theory but a compilation of two cultural management theories. Theory Z, also known as the Japanese management style was developed by Ouchi in his book 1981 'Theory Z: How American Management can Meet the Japanese Challenge'. In his book, Ouchi suggests that workers are not merely employees, but a true extension of the organization, a lifestyle. He also believes that if you make the worker feel like an integral part of the organization, they will perform in such a manner that will increase productivity as well as a sense of belonging. As was noted earlier, Theory Z is a combination of two cultural management styles. These cultural styles include the Japanese style (Organization Type J) and American style (Organization Type A). Ouchi believes that American companies should be run following the Type J organizations. Some examples that he cites include lifetime employment. They feel that the company has no right to release you unless you commit a criminal offense. At the age of 55, employees are forced to retire because this is the age in Japan you are deemed no longer able to work. Another belief that Type J organizations believe in is that of trust. They believe that everyone must trust and be loyal to each individual in the organization as well as those who supply your companies needs. Whereas Type A has a difficult time trusting its suppliers but also those who work directly for the company. For example Acme Razors has been a longtime customer of ABC Supplies. ABC Supplies has found a new supplier who can present them a 10% discounted rate than Acme Razors. ABC Supplies goes with the cheaper product rather than stay loyal to their longtime supplier. http://www.stfrancis.edu/ba/ghkickul/stuwebs/btopics/works/theoryz.htm Another interesting fact pertaining to Japanese companies is their decision making process. In Japan, they believe that the entire company should be involved in making decisions new employees all the way to top executives. By doing so you give everyone in the company a sense of belonging as well as a well thought out decision making process. In America, we have the belief that faster is better and that most of decisions come from top managers and executives. In an attempt to enlighten the differences in Type A and Type J systems, Table 1 highlights the styles A & J and the potential outcome if you merge the two (Type Z). Table 1 Type A- Type J- Type Z Type A American  Type J Japanese  Type Z Modified American Short term employmentLifetime employmentLong-term employmentIndividual decision makingCollective decision makingCollective decision makingIndividual accountability Collective accountabilityIndividual accountabilityRapid assessment & promotion Slow assessment & promotionSlow assessment & promotionFocused career pathNo focused career pathModerately focused career pathsSegmented concern for employee as an employee Holistic concern for employee as a person Holistic concern, including familySource: (Ouchi, 1981) As you can see, combining the two styles result in a modified system which adopts the mindset of the Japanese work force with the attitude of the American work force. Ouchi believes that combining the two styles would result in a favorable outcome for American companies, but also believes you need a variety of strategies to accomplish this outcome. Although we will not go into detail of these strategies, it is important to acknowledge some of the basic concepts. Here is a list of strategies needed: Understanding Theory Z, understand the companies vision and philosophy, define a philosophy and involve leaders, create structure and incentive, develop interpersonal skills, stabilize employment, have a system of evaluations and promotions, expand career paths, instill Theory Z in the work force, encourage employee participation and last, create a sense of family and belonging. For American companies to adopt Theory Z there are a few instrumental concepts that they would need to embrace to fully implement the system. First, you must develop employees whom are interested in having long term employment with the company which in turn develops a sense of loyalty. Next, by applying a system of evaluations and gradual promotions an employee becomes more familiar with the integral systems within a company and gives them a broader knowledge of how the company operates. Last, allow the work force to participate in the decision making process. (Luthans, 1989) Douglas McGregor Theory XY In 1960, Douglas McGregor introduced his Theory XY in his book Human Side of Enterprise 1960. In this book, he described how managers have a contrasting point of view on the nature of humans in the workplace. Generally, Theory X believes that people are normally lazy and avoid work as much as possible. In contrast, Theory Y gives the impression that people are creative and enjoy working (Goldman, 1983). McGregor maintains the theory that there are two styles to approaching people, Theory X which usually has poor results and Theory Y which frequently has a more positive outcome and increases performance as well promoting employee development. Theory X managers (authoritarian) view employees as inept individuals who generally dont like to work and needs close supervision to complete a task. They also believe that the average person is not ambitious and wants job security above all. Theory Y managers (participative) on the other hand has the impression that people will comply with the objectives of the company and will apply self control and direction in doing so. It also utilizes the idea that workers are willing to accept responsibility and are committed to using a high degree of imagination to achieve the objectives of the organization.  HYPERLINK "http://www.wikipedia.org/wiki/TheoryX_and_theoryY" www.wikipedia.org/wiki/TheoryX_and_theoryY" Moreover, Theory X assumptions tend to be pessimistic and negative, typical of how managers perceive employees. Through the formulation of Theory Y, McGregor attempts to help managers break the tradition of negative feedback by managers. If successful, managers can get more accomplished through employees by viewing them as responsible, committed achievers. (Kreitner, Kiniki, 2006). Figure 1 shows the relation of X managers and negative employee conclusions to Y managers and positive employee outcome. Figure 1 Theory X & Theory Y  McGregor views these two theories as separate attitudes and agrees both have applications in the work place. For example, when a worker or workers refuse to accept the goals and objectives in obtaining positive outcomes, the Theory X manager (authoritarian) must direct those employees in the proper direction to achieve those goals. When there is a commitment to achieving the objectives of an organization, a Theory Y manager (participative) would explain and discuss these objectives and allow for questions to mitigate any unclear interpretation of the objectives. By doing so employees realize their position within the organization and are more likely to produce positive results where an authoritarian approach does just the opposite. Now that we have addressed each of the perspective theories, it is necessary to begin the process of comparing similarities and differences of the management styles. The most obvious similarity we see is that both theories consider there is a perception and assumption in regards to people. Theory XY perceives the way management views people where Ouchis Theory Z talks on how the people perceive management. Table 2 discusses each management style and the similarities and differences between each. Table 2 McGregor-Ouchi Management Douglas McGregorWilliam OuchiTheoryTheory XYTheory ZMotivationTends to categorize people asPeople are motivate to work One type or another, either motivated are loyal and want the company or not motivatedPeople are motivated to succeedthrough threats or punishment. LeadershipTheory X managers are authoritarianTheory Z managers trust their employeesTheory Y managers are participative, bothto make sound decisions. Act more like a maintain a high level of controlCoach and allow workers to make the  decisionsPowerManagers assume most of the power Employees trusting management allows them And authority. Theory Y would takethe power to take care of employees. Workers suggestions but would still maintainare involved in the decision making processa majority of the powerConflictPower based conflict resolution Discussion and collaboration of conflict wouldCan be demonstrated by Theory X managers.be done by workers. Managers would act more as Theory Y may allow for negotiating to resolve.an arbitrator than get directly involved.EvaluationRegular evaluations along with speedyFrequent evaluations and slower promotionspromotions With respect to overall management style, it appears that McGregors managers have a more formal type of leadership. Also, Theory Y workers would become more task proficient because of their ability to improve the process and implicate different ways to complete the task, whereas Theory Z workers become generalist and semi skilled at a multitude of tasks. Although there may be general differences, there are similarities as well, notably Theory Y and Z. Both the managers view employees in the same light. Both allow for some employee empowerment and problem solving capabilities and managers are viewed more as coach rather than the authoritarian figure of Theory X. Another similarity that exists is the motivation of workers. Theory Y and Z both encourage self motivation which in turn increases productivity and improves the overall objectives of the company. Theory X on the other hand believes that workers must perform based on coercion and punishment, ultimately decreasing production. Theory X is those perceived to come to work, punch out and get a paycheck. In conclusion it becomes obvious of the two different yet similar management styles of Ouchi and McGregor. One must consider each component of the theories to make an educated decision about what type of management style is best. There has to be some belief that combining all three would in a sense create an overall Utopian management style. Careful consideration must be taken to integrate each component of the management style as to not overload one area and neglect another. An overall incorporation of these styles would create a structured environment with motivated and task oriented employees, all whom are interested in achieving the objectives and goals of the organization. X-Y Theory Questionnaire Score the statements (5 = always, 4 = mostly, 3 = often, 2 = occasionally, 1 = rarely, 0 = never) To indicate whether the situation and management style is X or Y: 1. My boss asks me politely to do things, gives me reasons why, and invites my suggestions. 2. I am encouraged to learn skills outside of my immediate area of responsibility. 3. I am left to work without interference from my boss, but help is available if I want it. 4. I am given credit and praise when I do good work or put in extra effort. 5. People leaving the company are given an 'exit interview' to hear their views on the organisation. 6. I am incentivised to work hard and well. 7. If I want extra responsibility my boss will find a way to give it to me. 8. If I want extra training my boss will help me find how to get it or will arrange it. 9. I call my boss and my boss's boss by their first names. 10. My boss is available for me to discuss my concerns or worries or suggestions. 11. I know what the company's aims and targets are. 12. I am told how the company is performing on a regular basis. 13. I am given an opportunity to solve problems connected with my work. 14. My boss tells me what is happening in the organisation. 15. I have regular meetings with my boss to discuss how I can improve and develop. Total score 60-75 = strong Y-theory management (effective short and long term) 45-59 = generally Y-theory management 16-44 = generally X-theory management 0 -15 = strongly X-theory management (autocratic, may be effective short-term, poor long-term) To indicate whether the person prefers being managed by X or Y style: 1. I like to be involved and consulted by my boss about how I can best do my job. 2. I want to learn skills outside of my immediate area of responsibility. 3. I like to work without interference from my boss, but be able to ask for help if I need it. 4. I work best and most productively without pressure from my boss or the threat of losing my job. 5. When I leave the company I would like an exit interview to give my views on the organisation. 6. I like to be incentivised and praised for working hard and well. 7. I want to increase my responsibility. 8. I want to be trained to do new things. 9. I prefer to be friendly with my boss and the management. 10. I want to be able to discuss my concerns, worries or suggestions with my boss or another manager. 11. I like to know what the company's aims and targets are. 12. I like to be told how the company is performing on a regular basis. 13. I like to be given opportunities to solve problems connected with my work. 14. I like to be told by my boss what is happening in the organisation. 15. I like to have regular meetings with my boss to discuss how I can improve and develop. Total score 60-75 = strongly prefers Y-theory management 45-59 = generally prefers Y-theory management 16-44 = generally prefers X-theory management 0 -15 = strongly prefers X-theory management Most people prefer Y-theory management. These people are generally uncomfortable in X-theory situations and are unlikely to be productive, especially long-term, and are likely to seek alternative situations. This quick test provides a broad indication as to management style and individual preference, using the X-Y Theory definitions. This assessment tool was developed by alan chapman and you may use it personally or within your organisation provided copyright and www.businessballs.com is acknowledged. Not to be sold or published. User accepts sole risk; alan chapman assumes no liability. More free online development resources (and explanation of McGregors X-Y Theory) are at http://www.businessballs.com/. alan chapman 2002. Based on Douglas McGregors XY-Theory. http://www.businessballs.com/ Douglas McGregor Theory XY & William Ouchi Theory Z Gregory Harrel Edison College Professor Clark/Management Philosophy & Practice December 1, 2006 Goldman, Jeri J. "The Supervisor's Beliefs about People and the Supervisory Plan: McGregor's 'Theory X' and 'Theory Y' in the Schools." The Clearing House March 1983: 306(4). (Kreitner,Robert Kiniki,Angelo. Organizational Behavior. New York McGraw-Hill/Irwin 2006). Luthans, Fred. Organisational Behaviour. New York: McGraw-Hill, 1989. Ouchi, William. Theory Z. 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