APPRAISAL & CRITICISM

Appraisal: The professional & human side of McGregor reveals a very colorful person of wide vision & scientific temper. His ‘Model’ of a manager was apt for industry, governments & nations. His books are guidelines to a future manager, to understand human nature & proper utilization of human resources.

From his Human side to the professional side, the writings of McGregor show a systematic evolution of his ideas. This has helped a lot to industrial society of U.S.A. As a scholar of behavioral management, his writings have helped the managers to sharpen their potentials to readjust their strategies of management for tomorrow.

The ‘X’ Theory & ‘Y’ theory represent the behavioral patterns of the employees. McGregor had his deep observation of human nature & human behavior. He wanted to relate theory to practice. McGregor wrote on both - a) the employees as well as - b) the managers. A ‘Y’ theory manager can communicate openly with subordinates, can minimize the differences between superior & subordinates, can create a comfortable environment in which the subordinates can develop & can use their abilities. McGregor suggests Managers to be more positive to their employees, to trust the employees & to make proper utilization of human resource for development.

Criticism - However, McGregor is largely criticized by his critics. The main criticism is that, his theories are fine but are difficult to bring into practice. Especially his ‘Y’ theory seems to be difficult to bring into practice.

McGregor tried to answer this question by claiming that each person must find his own answer. A manager has to think about the deal with himself, his role, his style, his own power & the issue & control over others. McGregor is also criticized on the ground that neither his ‘X’ theory nor ‘Y’ theory represent human behavior or human relationship. These theories are tools by which managerial skills can be studied & analyzed. The current research in management has gone beyond ‘Y’ theory to ‘Z’ theory.

Today, any theory is seldom used explicitly. The managers & the employees somewhere fall in between these two poles of ‘X’ theory & ‘Y’ theory. However, McGregor’s ‘X’ & ‘Y’ theories are still important theories in the field of management & motivation. His ‘X’ theory & ‘Y’ theory still remain a guiding principle of positive approaches to the management, to the development of organization & to bring improvement in organizational culture.

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THE RELEVANCE OF ‘Y’ THEORY.

‘The Human side of the Enterprise of McGregor aims to educate future manager, professional manager. He wanted to bridge the organizational goals with the aims, values & methodology of behavioral science. To him, management styles & strategies should be evolved & continuously adjusted in the light of the empirical reality, consistent with the findings of behavioral knowledge. This makes his theory relevant with practice. He also had an assumption that management science has transnational influence.’

One important relevance of Y Theory of McGregor, to modern industry is related to the Line & Staff Agencies in the organization. Modern industries are mostly operated by skilled staff. Their knowledge & experience influence decision making process in the organization. The ‘Line’ employee increasingly depends upon specialized staff. However, the ‘Y’ theory of McGregor can coordinate Line - staff relationship. The conflict between Line & staff bring lowered commitment to organizational objectives. The ‘Y’ theory establishes improved human resources, either for resolving conflicts or taking best decisions. McGregor had also written on leadership qualities of a manager. He had placed an idea of integration within the conceptual mould of transnational concept of power & influence.

Discussing and resolving the conflicts within the organization, McGregor suggests three strategies to be adopted a) divide & rule b) suppression of differences & c) working through of differences. The first two are based upon ‘X’ theory, whereas the third one is based upon ‘Y’ theory.

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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.’

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MCGREGOR’S ‘X’ THEORY

The most creative & lasting contribution of McGregor has been on management, development of managerial talent & managerial teamwork in an organization. His basic question of enquiry was, whether managers are made or are born? ‘Based upon his hypothesis that’ every managerial act rests upon theory’; McGregor argues that management is an art, it cannot be a science because it serves a different purpose. However, management can utilize scientific knowledge in the achievement of practical objectives of the organization, was his belief. As an organizational Psychiatrist, McGregor understood that the management’s hold on controlling its human resource, determine the whole character of the enterprise. He also argued that the most important problems of management lie outside the realm of improving the selection of managers with technical potential. The top executive, with higher potential & capacity cannot attain organizational objectives because of lack of utilization of employees’ talent. McGregor rejected the misconception that human behavior in an organization needs to be controlled. A top executive should not expect to achieve desired goals through inappropriate managerial action. So, he very aptly advances a hypothesis that all control is selective adaption. His deep observation led him to conclude that control in human affairs can be viewed as an integration of human behavior either through coercive compulsion or through motivational self control. He developed these two assumptions & scientifically tested their validity to propound his theories of managerial control, popularly known as ‘X’ theory & ‘Y’ theory. His ‘X’ theory is a traditional view of direction & control. In his book ‘The Human side of the Enterprise’, published in 1960, he has examined theories on behavior of individuals at work.

The ‘X’ Theory:-

·         The average human being has an inherent dislike of work & will avoid it, if he can.

·         Because of their dislike for work, most people must be controlled & threatened before they will work hard enough.

·         The average human prefers to be directed, dislikes responsibility, is unambiguous & desires security above ever thing.

·         These assumptions lie behind most organizational principles today & give rise both to ‘tough’ management with punishment & tight controls & ‘soft’ management, which aims at harmony at work.

·         Both these are ‘wrong’ because man needs more than financial rewards at work; he also needs some deeper higher order motivation - the opportunity to fulfill himself.

·         Theories ‘X’ managers do not give their staff this opportunity so that the employees behave in the expected fashion.

The ‘X’ theory of McGregor resembles ‘carrot stick theory.’ This can be one type of managerial strategy. This theory does not describe human nature. It considers humans as fearful, a dislike to work & an insecure beast. These assumptions limit managerial strategies. New managerial strategies, new organizational goals, new pattern of leadership etc. do not fall under this ‘X’ theory. He came to a conclusion that ‘as long as the assumptions of theory ‘X’ continue to influence managerial strategy; we will fail to discover, let alone, utilize the potentialities of the average human being.’

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WORKING OF BUREAUCRACY by McGregor Douglas McGregor (1906-1964)

OBJECTIVES

Douglas McGregor’s contribution has been in the field of art & science of management. McGregor emerged as a management Psychiatrist during the behaviouralist movement of post war era. McGregor attacked on the unrealistic & limiting assumptions of traditional theories of management, having concern for human nature & human behavior. Control over human behavior in organizations leads to resistance, restriction of output & indifference in the accomplishment, of organizational objectives. McGregor divided his views into - a) ‘X’ Theory & b) ‘Y’ Theory. The traditional assumptions, he regarded, fall under ‘X’ theory. He suggested ‘Y’ theory which is based upon integration & Self control, by the employees in an organization, to accomplish organizational goals. McGregor hoped that his Y theory as a new & superior ethic - is a set of moral values that ought to replace the values managers usually accept.

INTRODUCTION

In the field of study of Management, name of McGregor, is highly recognized. He was a Psychiatrist, who studied human Psychology & group sociology. Being a Management researcher, his main research was to make empirical science of Management. He wanted to guide manager as a professional manager. McGregor had a great concern for employees also.

McGregor had developed ‘X’ Theory, as a traditional view of management, McGregor did not support ‘X’ theory. Hence he developed ‘Y’ theory, which would suit the contemporary industrial society. In his ‘Y’ theory, McGregor had suggested positive approach to be adopted by managers as well as employees.

In this chapter, an attempt is made, to understand McGregor’s ‘X’ theory; ‘Y’ theory & the relevance of ‘Y’ theory in today’s world.

A BRIEF LIFE SKETCH OF MCGRAGOR

McGregor was born in U.S.A. He earned his B.E. in Mechanical from Rangoon Institution of Technology. He completed his M.A. & Ph.D. in Psychology from Harvard University in 1933 & 1935 respectively. He worked as a Management Professor at MIT, Sloan School of Management. He was president of Antioch College, from 1948 to 1954. He also taught at Indian Institute of Management, at Calcutta.

McGregor wrote two classics - 1) The Human side of the Enterprise & 2) The professional Manager. He also wrote numerous articles on professional managerial skills. His, ‘The Professional Manager’, focuses on linking the human side of the enterprise with appropriate managerial intervention & understanding.

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Conclusion / Let us Sum up

Inspire of all the points of criticism, against Simon’s decision making theory, one understands the importance of decision making, in every walk of life. Simon’s idea of rationality in decision making shows his deep insight of establishing close relationship between facts & values. His is a major contribution in the evolution of administrative theory. His administrative man & organizational behavior, has more concern are tested. No administrative thinker on Public Administration has written so widely on decision making as by Herbert Simon.

While Summing up, keep the following points in mind

i)                    Herbert Simon was a great administrative thinker & a Nobel Prize winner. He wrote extensively on Public Administration, Administrative theory & decision making processes.

ii)                  He suggested valid principles of organization & focused his attention on decision making.

iii)                He brought empirical approach to the science of Administration. He combined facts & values in his theory of Administration.

iv)                Simon calls decision making as the heart of an organization. In fact an organization is hierarchically structured to take decisions. Every decision, more or less, affects everybody in the organization.

v)                  Simon divides decision making activity into three phases -

a) Decision making is an intelligent activity; the decisions have to be taken in anticipation, which is an intellectual exercise.

b) Decision making is a design activity, in which, a head has to visualize all the possible options/alternatives, before reaching a final decision.

c) Decision making is a choice activity, where a final decision is made.

vi)                These three may appear to be simple, they are not very simple, but are complex, closely related to problem solving - what are the problems, what are the alternatives & which alternative is best?

vii)              Simon also discusses rationality in decision making, which involves facts & values.

viii)            Simon defines rationality, ‘appropriateness for the accomplishment of specific goals of organization. ‘A head has to take into consideration all the possible consequences before taking any decision’

ix)                Simon is also aware that even reaching rationality is a difficult process. He gives different types of rationality. He also knew the limitations of rationality.

x)                  On the basis of rationality, Simon reaches to his idea of an ‘administrative man’ & administrative behavior. The internal & external factors determine the behavior of administrative man.

xi)                Simon was very much influenced by the use of computers for administrative work. He distinguished between programmed & non programmed activities & found that computers can bring revolutionary changes in the working of organizations. A head can relieve him / her from the monotonous & mechanical work by relying on computers.

xii)              Simon also described some fundamental principles of organization.

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Appraisal & Criticism of Simon’s idea of decision making

Appraisal:

Simon focuses attention on the dynamics of decision-making processes & its role in organizations. His study provides a deep insight into administrative behavior & the interaction between decision making processes & administrative behavior found in organization. He viewed organizational decisions, into three phases. Rationality in decision making is a combination of facts & value is a unique contribution of Simon. His administrative man & administrative behavior focus upon administrative system.

Criticism:

Simon’s idea of decision making mainly concerns with business administration rather than public administration. His decision making theory is also criticized on the ground that though decision making process is an important variable in the organization, it is not the only factor. Decision making process involves many other factors, especially emotional, which Simon ignores. Simon’s decision making theory is too general.

Simon is also criticized on his idea of administrative man and administrative behavior. These dimensions differ from person to person & situation to situation. From this viewpoint, Administration cannot totally be regarded as value free science. Similarly, administrative systems do not bring similar role & similar consequences.

Rationality in decision making is also subject to criticism. Rationality, to Simon, meant a decision of ‘Status quo’, it is not dynamic.

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Herbert Simon on Administrative Behavior:

While dilating on the process of decision - making, Simon rejected rational, economic man & replaced him by a more realistic, administrative man. He proposed an idea of administrative man. The behavior of the administrative man, in the organization, is conditioned by organizational culture. The administrator is conditioned by organizational culture. The administrator has to comply with established rules & regulations & follow prescribed course of action. Such a man is called ‘organizational man’ Herbert Simon’s administrative man tries to rationalize man.

The behavior of organizational man is subject to two types of influences - internal & external. Internal influence involves attitudes, habits & temperaments, which leads him to reach the desired decisions. Internal factors also include loyalty, concern with efficiency & training. External factors involve authority, advisory & informational services.

Programmed & non-programmed activities in an organization Simon is fascinated by the advent of electronic computers. He makes a distinction between programmed & non-programmed decisions. The electronic computer is making available to mankind new decision - making techniques which bring changes in white collar, executive & professional work making them ‘as monotonous as those, the introduction of machinery has brought to manual jobs.’

Simon feels that the computer has the potential of revolutionizing organizational decision making. According to him repetitive & routine type of decisions can be programmed to the computers. Operations research, system analysis, quantitative data processing etc. can be given to the computers.

The non-programmed decisions help the higher level authorities to devote their time for taking more efficient decisions, innovative ability, acquiring higher skills. The use of computers may increase rationality. In fact, Simon believes in the unlimited confidence in computer & management information systems. Computers command revolutionary capacity in the process of gathering & organizing information public administration enables, to cope with the ever- increasing complexity of public policies & programmes. Simon thus suggests maximum use of computers for rational decisions.

Principles of Administration

Logically, Simon cites some of the administrative principles:

a) Administrative efficiency is increased by a specialization of the task among the group.

b) Administrative efficiency is increased by arranging the members of the group in a determinate hierarchy, of authority

c) Administrative efficiency is increased by limiting the span of control at any point in the hierarchy to a small number.

d) Administrative efficiency is increased by grouping the workers, for purposes of control, according to (a) purpose (b) process (c) cliental (d) place.

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