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Zoe Atlas

McGregor: Human Side of Enterprise

MG 61003/23/14

In this essay, The Human Side of Enterprise, by Douglas McGregor discusses two

sets of assumptions about human nature and explained how these assumptions affect

peoples attempts to influence the behavior of others. This becomes especially true with

how it affects managers attitudes towards their employees. McGregor discusses that

subtle and unconscious effects of their assumptions about people often affect managers

styles and approaches.

McGregor discovered that most managers believe that the employees are lazy and

un-ambitious people that only respond to threats, bribes, directed or punished in order to

motivate them.

He discusses the carrot and stick approach to motivation. The carrot or soft

approach uses rewards and coaxing as opposed to coercion. On the other hand, those who

use the stick or hard approach tended to use punishment instead. Althoughthese

assumptions are not usually stated formally, most organizations do have procedures based

on these views. For examples, jobs and goals were defined for the employees, upper

management makes decisions, rewards are based on tightly structured criteria and those

who deviated are punished in some way. McGregor names this Theory X, which is

largely based on the work of Frederick Taylor, whose scientific management theories

have to do with considering that people are like machinery.

There is another theory that McGregor discusses too. This theory is a result of the

work of Abraham Maslow, which develops the realization that people who are committed

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to their jobs are self-motivated and self-regulating and wants to be more involved in their

work. McGregor names this Theory Y.

Not all managers believe exclusively in one theory or the other. Instead, most

managers believe that people are a combination of both, with a tendency to behave as one

type.

Theory Y management, while it may seem softer or easier than the other, it often

requires more skills for the mangers as it sets high standards and expects people to meet

them. In addition, it requires more participative management and the manager must take

risks. Finally, this theory requires the manager to structure the job to allow employees

room for personal growth. As McGregor says, The essential task of management is to

arrange the organizational conditions and methods of operation so that people can

achieve their own goals best by directing their own efforts toward organizational

objectives.(160)

There are ten traits that vary with the two theories. According to Theory X, people

have an inherent dislike for work and will avoid it or do as little as possible. They will

not seek out responsibility and avoid it if possible. In addition, they are unable to direct

their own behavior and cannot be trusted to make good decisions. People under this

theory are neither self-motivated nor achievement-oriented and they are not dependable.

Furthermore, these people are motivated by money and other similar gains. They are not

concerned with the needs of the organization. They usually need to be supervised closely

and either coerced, controlled or threatened in order to get an adequate effort towards the

organization. Finally, these people are not able to change.

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On the other hand, according to Theory Y, people will work hard to achieve their

goals and are willing to assume responsibility for things. In addition, they are capable of

making decisions about their own endeavors and prefer to do so. Furthermore, they have

a need to achieve and are trustworthy and dependable. Things that interest or challenge

themselves motivate these people. This often contributes to their feelings of self-respect

and feelings of accomplishment. In addition, they often want to contribute to the success

of the organization. They need to be provided with the resources to do the task and

supported during its accomplishment. Finally, they are easer and able to learn and grow

in order to develop both personally and professionally.

McGregorstheory explains the failure of many management systems and brings a

new concept of managing. This is because there is only so much money that can be

offered as motivation and only so much control that can work. Therefore, Theory X

management is somewhat limited. However, there are limitless ways to allow people to

obtain personal satisfaction, knowledge, prestige and other types of rewards. At the same

time, he does realize that these new ways of managing cannot be implemented with these

old organizational systems.

This essay can also help managers on a personal level. The theory that a manager

identifies with can say a great deal about ones view on human nature. People who

identify with Theory X are identifying with a negative view of people, while Theory Y

people are identifying with a more positive view of people. Therefore McGregors

theories can offer management and manager insight into their organizations as well as

themselves.

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Works Cited

Ott, J. Steven., Sandra J. Parkes, and Richard B. Simpson. "The Human Side of

Enterprise." Classic Readings in Organizational Behavior. Belmont, CA:

Thomson/Wadsworth, 2008. 158-63. Print.