Assessment on the Relevance of McGregor's Theory X and Y Today

This essay delves into the enduring relevance of McGregor's Theory X and Theory Y within the context of contemporary organizational behavior. It begins by outlining the core tenets of each theory, highlighting the contrasting assumptions about human nature and their implications for leadership styles. Theory X, characterized by a negative view of employees, is contrasted with Theory Y, which emphasizes employee self-direction and responsibility. The essay then explores the relevance of both theories in today's competitive business scenario, arguing that while both are extreme, a blended approach is often most effective. It discusses the importance of balancing the need for control with the empowerment of employees, considering the impact of different work environments and cultural factors. The conclusion emphasizes the need for managers to adapt their leadership styles based on the specific context and the individuals involved, highlighting the importance of effective decision-making and employee-centric policies. The essay underscores that while both theories have their pros and cons, a balanced approach is crucial for organizational success.

RUNNING HEAD: ORGANISATIONAL BEHAVIOR
1
Organizational Behavior
“Relevance of McGregor’s theory x and y in today's
world?"
win
1/8/2018

Relevance of McGregor’s theory x and y in today's world 2
Contents
Introduction.................................................................................................................................................3
Relevance of Theory X and Y.....................................................................................................................3
Context in today’s competitive business scenario........................................................................................4
Conclusion...................................................................................................................................................5
References...................................................................................................................................................7

Relevance of McGregor’s theory x and y in today's world 3
Introduction
Theory X and Theory Y represents two set of assumption related to human nature and
behavior necessary to carry out an effective practice of management. Theory Y denotes the
positive view of human nature and therefore assumes that an individual is generally industrious,
creative and able to take responsibility in order to exercise responsibility and self control (Theory
X and Theory Y, 2018). Theory X therefore represents a negative view about an individual
dislike towards work. They require close supervision towards work. Under theory X, the
leadership style is autocratic in nature which may create resistance in subordinates.
Communication flow take place from manager to the subordinates. Theory Y fosters leadership
style that is more participative (Lawter, Kopelman & Prottas, 2015). This empowers the
subordinates to seek responsibility in order to meet organizational goals. The theory Y
leadership therefore helps in increasing communication flow in upward direction.
Theory X is more likely to result in the external control where the managers act as a
performance judge. Theory Y is more focused on controlling on the subordinates. Both the
theories are straight-forward and clearly demonstrates the relationship in between the
assumptions taken by manager (Theory X and Theory Y, 2018). These two theories are parallel
with Abrahams Maslow’s Hierarchy of need. Theory Y is found to be extreme and did not work
well. It is found that people are mature enough to work independently without any interference.
Theory Y is criticized as it was found inhuman to the weak and for those who are not capable of
a high level of self-motivation (Van Wart, 2014).

Relevance of McGregor’s theory x and y in today's world 4
Relevance of Theory X and Y
Both the theories are extreme in nature. The real world managers are tenderer towards
both the categories. However there is some possibility to analyse a particular type of
management and decide about the end of variety it fall closer to. The modern business schools
are more focused on Theory Y and find Theory X as bad. The position of the leader brings forth
the leadership style and brings about the circumstances. Theory X is considered to be relevant in
terms of gaining productivity Lazy employees does exist and causes ineffectiveness in gaining
organizational productivity and company resources. Theory X is considered as destructive to
the organization as it affecting the communication and affects the business function. While
considering its relevance in today’s competitive scenario the clear approach followed by the
professionals is an amalgamation of both the theories. From the point of view of management it
is important to use Theory Y that focus on giving credits to the employees for the efforts they
have made. It is not necessary to pamper the employees all the time. There is a necessity to use
the most appropriate approach in order to gain the benefit. If an individual is not working
appropriately on a task, it is the duty of the manager to look into the issue and provide with the
best solution (Van Wart, 2017).
Context in today’s competitive business scenario
In today’s competitive scenario the purpose is to figure out the balance that will allow in
gaining competency. This simply means that the management has to deal in an appropriate way
in order to arrange organizational effectiveness. It is necessary for generating better
opportunities for the organization from the point of delivering better results. The problem exists
at the time when the problem regarding the employee development and training is avoided.

Relevance of McGregor’s theory x and y in today's world 5
There are different work environment and culture that affect the organization to a large extent. It
is therefore important to manage the interpersonal relationship in order to deal with the critical
issues occurring in the organization. It is a matter of great concern. Theory X is largely
concerned with the autocratic nature of the leader which creates resistance. In order to manage
the cultural gap it is important to develop effectiveness in an organization (Haine & Robert,
2014). This will help in understanding the organizational needs in a better way. For an
organization, it is important to develop effective measures that will ensure a balance in between
the ongoing effectiveness. This is necessary for generating organizational effectiveness and
managing long term growth in order to process better organizational goals. It is important
enough for understanding important role and information in order to gain effectiveness (Hamstra,
Van Yperen, Wisse & Sassenberg, 2014).
Every country has a different way to respond to the situation at a different time. It is
therefore an important technique that allow in managing the changes that are taking place in the
best possible way. Both the theories do not hold enough importance in today where the
employers are more focusing on giving liberty to them. This will allow in getting work done in a
way they want it. In current scenario business organizations are much more focused on gaining
effective resources. This is important from the point of generating better organizational
resources. For a business organization it is important to arrange effective resources and focusing
on generating efficiency at work (Burke & Barron, 2014).
Conclusion
To conclude, Most of the managers are likely to implement a mixture of both Theory X
and Theory Y. However both the styles can motivate an individual and a team to achieve goals.

Relevance of McGregor’s theory x and y in today's world 6
This basically depends upon the way in which the team want to attain organizational goals.
Theory X is more likely to be implemented in case of guiding a new team of people; however
this theory is not likely to work out when dealing with the experts. This can have a
demotivating impact on them. This might lead to a high employee turnover ratio. These theories
have equal amount of pros and cons on employees. For generating better results it is important
enough to develop an effective decision making program that will support the individual at work.
Instead of creating a pressure on employees, it is evident to evaluate the policies that will give
employees with a privilege to work freely. However it is important for the business
organization to find out an effective strategy in order to attain a balance. Both the theories are
relatively different and require a balance in present scenario. It is however important for an
individual to manage the problems that are occurring in the organization. There is a necessity to
find a balance in between the employees need.

Relevance of McGregor’s theory x and y in today's world 7
References
Burke, R., & Barron, S. (2014). Project management leadership: building creative teams. John
Wiley & Sons.
Haine, S., & Robert, J. (2014). Develop Managerail skills: leadership. Haine Sabine
Hamstra, M. R., Van Yperen, N. W., Wisse, B., & Sassenberg, K. (2014). Transformational and
transactional leadership and followers’ achievement goals. Journal of Business and
Psychology, 29(3), 413-425.
Lawter, L., Kopelman, R. E., & Prottas, D. J. (2015). McGregor's theory X/Y and job
performance: A multilevel, multi-source analysis. Journal of Managerial Issues, 27(1-4),
84.
Theory X and Theory Y, (2018). (Online). Retrieved from:
https://www.mindtools.com/pages/article/newLDR_74.htm (Accessed on: 4 January
2018)
Theory X and Theory Y, (2018). (Online). Retrieved from:
http://www.referenceforbusiness.com/management/Str-Ti/Theory-X-and-Theory-Y.html
(Accessed on: 4 January 2018)
Van Wart, M. (2014). Dynamics of leadership in public service: Theory and practice. Routledge.
Van Wart, M. (2017). Leadership in public organizations: An introduction. Taylor & Francis.