Theory X and Theory Y

Douglas McGregor (1906 - 1964) is one of the forefathers of management theory and one of the top business thinkers of all time. He was a social psychologist who became the President of Antioch College. He later became a professor of management at Massachusetts Institute of Technology (he was succeeded by Warren Bennis).

 In the 1960s, an American social psychologist, Douglas McGregor in his book, “The Human Side of Enterprise” has examined theories on behavior of individuals at work, and he has formulated two models which he calls Theory X and Theory Y. Both of these theories begin with the premise that management role is to assemble the factor of production including people, for the economic benefit of the firm. McGregor developed a philosophical view of humankind with his Theory X and Theory Y.. He suggested that management could use either set of needs to motivate employees, but better results would be gained by the use of Theory Y, rather than Theory X. McGregor's maintained that there are two fundamental approaches to managing peoples and identified two radically different sets of assumptions . These assumption are given below:

Theory X

Theory Y

Employees inherently dislike work and avoid it whenever possible. Because employees dislike work, they  resist change Employees has no ambitions, avoid responsibilities whenever possible and would follow rather than lead. Employees value money and  security above all other job factors. Employees are self centered and therefore, does not care about organizational goal

Employees like work and consider it as natural as play and rest. People naturally work toward goals they are committed to. People will be committed to their goal when rewards are in place that address higher needs such as self fulfillment. The average person can learn to accept and even seek responsibility. The average person's intellectual potential is only partially realized. Most people can handle responsibilities because creativity and ingenuity are common in people

The assumptions behind Theory X emphasize authority. Theory X—oriented managers believe that employees dislike work and can be motivated only by the fear of punishment and losing their jobs or by extrinsic rewards such as money, promotions, and tenure. This management style emphasizes physiological and safety needs and tends to ignore the higher-level needs in Maslow's hierarchy.           

Theory Y emphasize growth and self-direction. Theory Y—oriented managers believe that employees like work and can be motivated by working for goals that promote creativity or for causes they believe in. Thus, Theory Y-oriented managers seek to motivate employees through intrinsic rewards.

Criticism of Theory X / Theory Y

Nowadays McGregor's theory is seen as outdated, representing two extremes.

Theory X is perhaps visible in low paid or menial work but employees in those situations will move on in search of positions with Theory Y conditions if they are motivated.

Personal development, management training and even general perceptions of behaviour are against a Theory X outlook towards work.

There is no doubt that this outlook would have been more prevalent in the 1960s when McGregor created his theory.

They were, however, landmark ideas at their time and now form an important part of the historical study of management theory.

Reference

http://www.netmba.com/mgmt/ob/motivation/mcgregor/

http://www.teambuilding.co.uk/theory_x_theory_y.html

http://www.vectorstudy.com/management_theories/theory_X_and_Y.htm

Herzberg’s Theory, Two Factor Theory, Motivation-Hygiene theory

Frederick Herzberg is a well known psychologist that contributed their idea about motivation problem. Frederick Herzberg’s theory further be called two-factor theory, and also be known as the motivation-hygiene theory. Herzberg's Two Factor Theory is a "content theory" of motivation". In the 1960s, Frederick Herzberg and his associates conducted the study of human needs. The information collected relates to the attitude of people towards work. They analyzed the job attitudes of 200 accountants and engineers. They asked accountants and engineers to describe specific aspects of their jobs, they had felt positive or negative at work and that made them feel satisfied or dissatisfied.

Upon analyzing the results, Herzberg suggested a two-step approach to understanding employee motivation and satisfaction: They found that two entirely different sets of factors were associated with satisfying and dissatisfying work experiences, which they categories as hygiene factors and motivators.

Hygiene Factors

The Hygiene Factors are those factors that contribute to providing job satisfaction. They are not an intrinsic part of a job, but they are related to the conditions under which a job is performed.  Presence of these factors does not motivate but prevents dissatisfaction. However, absence of these factor results in dissatisfaction, so  he called them "dissatisfiers' .The hygiene factors do not motivate to take more interest in the work but ) create a favorable environment for motivation and avoid unpleasantness . When employer is unable to provide enough of these factors, there will be job dissatisfaction among employees, such hygiene factors are as noted below.

Company's Policies and Administration, Supervision, Working Conditions, Interpersonal Relations with superiors and other subordinates, Salary, Job Security, Status, Personal Life, and Employee Benefits.

Motivating Factors

Herzberg believed that businesses should motivate employees by adopting a democratic approach to management and by improving the nature and content of the actual job through certain methods; such methods are motivating factors for employees. Motivating Factors are related to work itself and act as forces of job satisfaction. They create positive and a longer lasting effect on employee’s performance and motivate employees in their work because they serve man's basic needs for psychological growth. Adequate provision of such factors called is 'Satisfiers'. Such factors are called motivators by Herzberg. The motivating factors are:

Achievement, recognition for accomplishment, job enlargement, job enrichment, increased responsibility, empowerment, opportunity for growth and development, creative and challenging Work and other personally rewarding factors.

Motivating factors motivate subordinates to take more interest in the work. They raise efficiency and productivity of employees. Employees will not have job satisfaction if the motivating factors are not provided in sufficient quality by the employer. Managers can help employees feel more motivated and, ultimately, more satisfied, by paying attention to motivators.

In brief, hygiene factors affect an individual's willingness to work while motivating factors affect his ability and efficiency to work.

Should managers concentrate on motivators or on hygiene factors? It depends. A skilled, well-paid, middle-class, middle-aged employee may be motivated to perform better if motivators are supplied. However, a young, unskilled worker who earns low wages, or an employee who is insecure, will probably still need the support of strong hygiene factors to reduce dissatisfaction before the motivators can be effective.

Comparison between Herzberg’s theory and Maslow’s Theory

Similarities between Herzberg’s theory and Maslow’s Theory

Both use a hierarchical scale, where one stage must first be fully or largely completed before advancing to the next stage.

Both are based on the argument that "we behave as we do because we are attempting to fulfill internal needs." (Bartol et al., 2005) i.e. needs theory.

They both specify the criteria as to what motivates people. However, this is controversial because entrepreneurs and people from different cultures have different values and norms, and therefore have different criteria or have criteria which are perceived as more important e.g. Greek and Japanese employees stated that safety and physiological needs are more important to them, where as employees from Norway and Sweden saw belongingness needs as being more important.

Comparison of Herzberg’s Theory and Maslow’s Theory

	Herzberg	Maslow
Higher Order Needs   Lower Order Needs	Motivation	Self actualization
		Esteem
		Social
	Hygiene
		Safety
		Physiological

Herzberg's hygiene idea corresponds with Maslow's Physiological, Safety and Belongingness needs i.e. they both have the same criteria (basic pay, work conditions etc.).

Also, Herzberg's motivators idea corresponds with Maslow's Esteem and Self-Actualization needs i.e. they both have the same criteria (recognition, growth, achievement etc.).

Both theories are influenced by environmental conditions, employee attitudes and as a result, their motivation. These influence an employee’s performance.

Distinction between Herzberg’s Theory and Maslow’s Theory

Maslow’s Theory of Motivation	Herzberg’s theory of Motivation
Meaning: It is based on the concept of human needs and their satisfaction	It is based on the use of motivators which include achievement, recognition and opportunity for growth
Basis of Theory: It is based on the hierarchy of human needs. He identified five set of human needs	He refers to hygiene factors and motivating factors in his theory. Hygiene  factors are dissatisfies while motivating factors motivates the subordinates
Nature of Theory: It is rather simple and descriptive. The theory is based long experience about human needs	It is more prescriptive and suggest the motivating factors which can be use effectively. This theory is based on actual information collected by interview.
Stages: Maslow says that each stage of the 5 must be fully or largely completed before advancing to the next stage	Herzberg suggested that there were only 2 stages (hygiene and motivators) instead of 5
Acceptability: It is most popular and widely cited theory of motivation and has wide applicability.	It is an extension of Maslow’s Theory of motivation. Its applicability is also narrow
Applicability: It is mostly applicable to poor and developing countries where money is still a motivating factor.	It is applicable to rich countries where money is less important motivating factor.
Descriptive/ Perspective: Its model is descriptive in nature	Herzberg theory (model) is perspective in nature.
Motivators: According to Maslow’s any need can act as motivator provided it is not satisfied or relatively less satisfied. Maslow said that fulfilling each stage is a motivator	In this model hygiene factors (lower level needs) do not act as motivators. Only the higher order needs (achievement recognition, challenging work) act as motivators. Fulfilling the hygiene stage only results in an employee being in neutral state and satisfaction and motivation only comes from the 2nd stage (motivator)

Reference

http://gmx.xmu.edu.cn/ews/business/businesstoday/chapter%2010.htm

http://kalyan-city.blogspot.com/2010/06/frederick-herzberg-two-factor-theory.html

ERG Theory / Alderfer MotivationTheory

Clayton Alderfer proposed the ERG theory in a condensed version of Maslow’s hierarchy of need to address some of the limitations of Maslow's hierarchy. This is very similar to Maslow but maybe a bit more rational.

ERG is abbreviation of Existence, Relatedness, and Growth.

ERG theory is hierarchical. - Existence needs are at first level and have priority over relatedness needs which are at second level. Relatedness needs have priority over growth.

However, ERG theory does not assume a rigid hierarchy where a lower need must be substantially satisfied before one can move on. He suggested that more than one need may be activated, sought to be satisfied by the individual, at the same time than a hierarchy.

 Alderfer  three categories of needs are ordered hierarchically as

Existence (physical well-being)

It refers the concern with basic material existence requirements. Those needs to sustain life , such as food and water, as well as such work-related forms as pay, fringe benefits and physical working conditions.  (Maslow’s physiological and safety needs).

In a work context this need is satisfied by money earned in a job for the purchase of food, shelter, clothing, etc.

 Relatedness (satisfactory relations with others)

It  refers to the desire we have for maintaining interpersonal relationships, such as relationship with families, friendship groups, work groups and professional groups. The need to feel a sense of belonging, affiliation, and friendship .( Maslow’s interpersonal security, social need, and the external component of esteem need).

In a work context and given the amount of time most people spend at work this need is normally satisfied to some extent by their relationships with colleagues and managers.

 Growth (development of competence and realization of potential)

It  refers to an intrinsic desire for personal development and  development of one's potential. Impel a person to make creative or productive effects on himself and his environment. It impel creativity and innovation, along with the desire to have a productive impact on surroundings. (the intrinsic component of Maslow’s esteem need, and self-actualization).

These needs are all about by personal development. In a work context a person's job, career, or profession can provide a significant satisfaction of growth needs.

Alderfer's Hierarchy of Motivational Needs

Level of Need	Definition	Properties	Examples
Growth	Impel a man towards creativity and innovation, along with the desire to have a productive impact on himself , environment and surroundings.	Satisfied through using capabilities in engaging problems; creates a greater sense of wholeness and fullness as a human being	Promotion, recognition, Authority, learning something new
Relatedness	Involve relationships with significant others	Satisfied by mutually sharing thoughts and feelings; acceptance, confirmation, under- standing, and influence are elements	Relationship with families, friendship groups, work groups and professional groups.
Existence	Includes all of the various forms of material and psychological desires	When divided among people one person's gain is another's loss if resources are limited	food and water, as well as such work-related forms as pay, fringe benefits and physical working conditions.

A Reorganization of Maslow's and Alderfer's Hierarchies

Level	Introversion	Extroversion
Growth	Self-Actualization (development of competencies [knowledge, attitudes, and skills] and character)	Transcendence (assisting in the development of others' competencies and character; relationships to the unknown, unknowable)
Others (Relatedness)	Personal identification with group, significant others (Belongingness)	Value of person by group (Esteem)
Self (Existence)	Physiological, biological (including basic emotional needs)	Connectedness, security

Frustration-Regression principle

Alderfer also deals with frustration-regression. That is, if a higher-order need is frustrated, an individual then seeks to increase the satisfaction of a lower-order need. ERG theory counters Maslow’s theory by noting that when a higher- order need level is frustrated the individual’s desire to increase a lower- level need takes place. Inability to satisfy a need for social interaction, for instance, might increase the desire for more money or better working conditions. So frustration can lead to a regression to a lower need.

For example if a person is continually frustrated in their attempts to satisfy growth needs (e.g. gain promotion), relatedness needs may assume greater importance (e.g. social relations at work), this lower level need becoming the focus of the individuals efforts. Alderfer's research support the idea that lower level needs does not  decrease in strength as they become more satisfied, as opposed to Maslow.

Differences from Maslow's Hierarchy

In addition to the reduction in the number of levels, the ERG theory differs from Maslow's in the following three ways:

an individual would stay at a certain need level until that need was satisfied.

·         Maslow's hierarchy of need have 5 levels while ERG theory have three levels.

·         Unlike Maslow's hierarchy which says , an individual would stay at a certain need level until that need was satisfied, the ERG theory allows for different levels of needs to be pursued simultaneously.

·         The ERG theory allows the order of the needs be different for different people.

·         The ERG theory acknowledges that if a higher level need remains unfulfilled, the person may regress to lower level needs that appear easier to satisfy,  known as the frustration-regression principle.

Implications for Management

·         In the work situation we might apply ERG to seek alternative satisfiers / motivators for staff when a primary need cannot be satisfied. If a person’s needs at a particular level are blocked, then attention should be focused on the satisfaction of needs at other levels. A Subordinates growth needs may be blocked because the job doesn’t allow sufficient opportunity for personal development, If the ERG theory holds, then unlike with Maslow's theory, managers must recognize that an employee has multiple needs to satisfy simultaneously.  then  by applying ERG the manager should attempt to provide greater opportunities for the subordinate to satisfy existence and relatedness needs, which are still genuine motivators for the individual.

Summary

ERG theory argues, like Maslow, that satisfied lower- order needs lead to the desire to satisfy higher-order needs; but multiple needs can be operating as motivators at the same time, and frustration in attempting to satisfy a higher- level need can result in regression to a lower- level need.

Reference

http://www.examstutor.com/business/resources/studyroom/people_and_organisations/motivation_theory/6-alderferneeds.php

http://managementconsultingcourses.com/Lesson20Motivation&ItsTheories.pdf

http://motivationcentre.blogspot.com/2006/03/alderfers-erg-theory.html

http://www.zainbooks.com/books/management/principles-of-management_35_other-theories-of-motivation.html