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The Human Side of Enterprise

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1 The Human Side of Enterprise
Sr. Patricia Tavis ELMP 7773 Daniel Gutmore, Ph. D.

2 Douglas McGregor (1906-1964) Noted American social psychologist
Wayne State University (B.A., L.L.D.) Harvard (M.A. , Ph.D.) : MIT – First full time teacher of psychology : Antioch College – President : MIT - School of Industrial Management

3 “What are your assumptions (implicit as well as explicit) about the most effective way to manage people?” Douglas McGregor The Human Side of Enterprise

4 Theory X: Assumptions on Human Nature
The average human being has an inherent dislike of work and will avoid it if he can. Must be controlled Must be directed “Hard management” “Soft management”

5 Theory Y: Assumptions on Human Nature
The average human being needs to work, actively seeks responsibility and is creative and resourceful. Self-directed / motivated Seeks responsibility Problem-solvers Intellectual capabilities underused

6 Management Tenets Theory X Theory Y
Organizes productive elements according to human needs Organizes the elements according to economic ends Directs people to fit needs of organization Assists people to recognize and develop responsibility People are passive and resistant to organizational needs People become passive as a result of experiences Management gets things done through other people People achieve own goals by directing their own efforts toward organizational objectives

7 Maslow’s Hierarchy of Needs
Basis of McGregor’s “Theory Y” Self Actualization Esteem Belonginess Safety Shelter Food

8 Application of Hierarchy of Needs to Management and Workplace
Theory X (ineffective management) Once a need is met, it no longer motivates behavior: therefore only unmet needs are motivational. Theory Y (effective management) Motivational emphasis shifts to social, ego, and self- actualization since most employees have physical and safety needs met.

9 Management Styles of Theory X * Led to ineffective management
Hard Management Soft Management Methods Close supervision tight controls coercion Permissiveness needs for satisfaction Results Restriction of output Mutual distrust Sabotage Unionism Failure to perform roles Employees took advantage by demanding more but performing at lower level * Led to ineffective management

10 Management Styles of Theory Y * Led to effective management
Decentralization of decision- making authority Delegation Job enlargement Participative management * Led to effective management

11 Management Theory X Theory Y
Purpose Produce economic Produce economic results results Application Production Workers Managers & Professionals Conducive to Large scale operations Participation & Problem Solving Style Authoritarian Participative Adopted by Taylorist – followers Mayo’s human relations followers

12 Traditional view of direction and control
Management Functions Theory X Traditional view of direction and control Theory Y Integration of individual & organizational goals Management Staff Staff Management

13 Scanlon’s Organizational Development (Theory Y)
Participatory management based on four concepts: 1. Identity 2. Participation 3. Equity 4. Managerial Competence

14 * Management by integration and self control *
The Scanlon Plan * Management by integration and self control * Equity Motivation Cost reduction and sharing Effective participation Created organizational control

15 Theory X and Theory Y in Educational Settings
1930’s – 1950’s Coercion Everyone learns the same / rote methods Theory Y 1960’s to Present Honors divergent thinking Uses various teaching methodologies

16 Teacher – Student Relationships
Teacher’s managerial role: Create (in part) work environment Assign jobs Promote students Interact with students

17 Administrator – Teacher Relationships
Delegation of responsibilities Job enlargement Participative style Performance appraisals

18 Thank you Sr. Patricia Tavis 2006

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