McGregor’s Theory X and Y

Managing resources efficiently and effectively is the most fundamental goal for organisation which aims to maximise individual and social prosperity. Therefore, the management theory is constantly developing. In 20th century, there were several management theories proposed such as scientific management, administrative management, behavioural management, etc. as increasingly aware of human are crucial element of the organisation and vital in influencing overall organisational performance, Douglas McGregor who studied about how workers’ behaviour effect the manager’s leadership, proposed Theory X and Y (Waddell et al. 2007). It is no doubt this conventional concept still correct in 21st century, however, business environment is significant different worldwide and human values and beliefs are totally different compare to 20th century. The aim of the essay is critically discuss the value and relevance of McGregor’s idea for managers in 21st century.

Behavioural management is the study about the style of leadership and motivation method affects the behaviour and attitudes of workers (Waddell et al. 2007). McGregor studied from Maslow’s hierarchy of needs and found human needs can be categorised in five levels which are safety, physiological, belonging, esteem and self-actualisation needs and utilise them in analysing human behaviour in relation to organisation management (Kermally, 2005). It is essential to take into account how workers feel, behave and react on their job as successful business dominated by how well the organisation members cooperate together. McGregor published two sets of assumption, Theory X and Y which explain whether workers are indolent, responsibility aversion and pursuing lower level of needs or workers like...

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