MCGRAGOR’S ‘Y’ THEORY

McGregor was largely influenced by Maslow’s theory of hierarchy of human needs. McGregor viewed human needs with emotional commitment. McGregor’s Y theory suggests alternate assumptions for the integration of the individual & organizational goals. He wanted selective adoption in managerial strategy. McGregor arranged a new set of assumptions which will invite morals & motivation. The following assumptions are embodied in the ‘Y’ Theory:

·         The expenditure of physical & mental effort in work is as natural as play & rest.

·         Control & punishment are not the only ways to make people work. Man will direct himself if he is committed to the aims of the organization.

·         If a job is satisfying, then the result will be commitment to the organization.

·         The average man learns, under proper conditions, not only to accept but to seek responsibility.

·         Imagination, creativity, ingenuity can be used to solve work problems by a large number of employees.

·         Under the conditions of modern industrial life, the intellectual potentials of the average man are only partially used & utilized.

McGregor’s ‘Y’ theory attacks on the ‘X’ theory that employees are lazy, indifferent & are dislike of accepting responsibility. They are uncooperative. McGregor argued that it is not the fault of human nature but of manager’s strategy of control. If there is integration in the behavior of employees, the organizational goals could be achieved.

How the integrity amongst the employees can be achieved? The employees should have self control. Integration & self control can be possible if the individual needs & organizational needs are properly recognized. McGregor’s theory aims to encourage & create motivation amongst employees. This is a way to innovation. McGregor had a deep knowledge of individual Psychology & group sociology, which he wanted to offer to modern management. So he wanted to establish a high co-relation between the acceptance of responsibility & commitment to the objectives of the organization. The motivational performance of employees through self control & integrative behavior can bring better results. The employees should be given greater opportunities to play an active part in decisions affecting their careers.

The Scanlon plan:

Based upon the ‘Y’ Theory, McGregor further collaborated with Fredrick Hesiaur, who was carrying research on union Management Cooperation, popularly, known as Scanlon plan. The Scanlon plan is consistent with ‘Y’ theory of McGregor. The Scanlon plan is based upon two central features - 1) lost reduction sharing 2) effective participation.

The Scanlon plan proposes that, ‘used wisely & with understanding participation is a natural commitment of management by integration & self control.’