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