Zoe Atlas

McGregor: Human Side of Enterprise

MG 610
03/23/14

In this essay, The Human Side of Enterprise, by Douglas McGregor discusses two
sets of assumptions about human nature and explained how these assumptions affect
peoples attempts to influence the behavior of others. This becomes especially true with
how it affects managers attitudes towards their employees. McGregor discusses that
subtle and unconscious effects of their assumptions about people often affect managers
styles and approaches.
McGregor discovered that most managers believe that the employees are lazy and
un-ambitious people that only respond to threats, bribes, directed or punished in order to
motivate them.
He discusses the carrot and stick approach to motivation. The carrot or soft
approach uses rewards and coaxing as opposed to coercion. On the other hand, those who
use the stick or hard approach tended to use punishment instead. Although these
assumptions are not usually stated formally, most organizations do have procedures based
on these views. For examples, jobs and goals were defined for the employees, upper
management makes decisions, rewards are based on tightly structured criteria and those
who deviated are punished in some way. McGregor names this Theory X, which is
largely based on the work of Frederick Taylor, whose scientific management theories
have to do with considering that people are like machinery.
There is another theory that McGregor discusses too. This theory is a result of the
work of Abraham Maslow, which develops the realization that people who are committed
to their jobs are self-motivated and self-regulating and wants to be more involved in their
work. McGregor names this Theory Y.
Not all managers believe exclusively in one theory or the other. Instead, most
managers believe that people are a combination of both, with a tendency to behave as one
type.
Theory Y management, while it may seem softer or easier than the other, it often
requires more skills for the mangers as it sets high standards and expects people to meet
them. In addition, it requires more participative management and the manager must take
risks. Finally, this theory requires the manager to structure the job to allow employees
room for personal growth. As McGregor says, The essential task of management is to
arrange the organizational conditions and methods of operation so that people can
achieve their own goals best by directing their own efforts toward organizational
objectives. (160)
There are ten traits that vary with the two theories. According to Theory X, people
have an inherent dislike for work and will avoid it or do as little as possible. They will
not seek out responsibility and avoid it if possible. In addition, they are unable to direct
their own behavior and cannot be trusted to make good decisions. People under this
theory are neither self-motivated nor achievement-oriented and they are not dependable.
Furthermore, these people are motivated by money and other similar gains. They are not
concerned with the needs of the organization. They usually need to be supervised closely
and either coerced, controlled or threatened in order to get an adequate effort towards the
organization. Finally, these people are not able to change.
On the other hand, according to Theory Y, people will work hard to achieve their
goals and are willing to assume responsibility for things. In addition, they are capable of
making decisions about their own endeavors and prefer to do so. Furthermore, they have
a need to achieve and are trustworthy and dependable. Things that interest or challenge
themselves motivate these people. This often contributes to their feelings of self-respect
and feelings of accomplishment. In addition, they often want to contribute to the success
of the organization. They need to be provided with the resources to do the task and
supported during its accomplishment. Finally, they are easer and able to learn and grow
in order to develop both personally and professionally.
McGregors theory explains the failure of many management systems and brings a
new concept of managing. This is because there is only so much money that can be
offered as motivation and only so much control that can work. Therefore, Theory X
management is somewhat limited. However, there are limitless ways to allow people to
obtain personal satisfaction, knowledge, prestige and other types of rewards. At the same
time, he does realize that these new ways of managing cannot be implemented with these
old organizational systems.
This essay can also help managers on a personal level. The theory that a manager
identifies with can say a great deal about ones view on human nature. People who
identify with Theory X are identifying with a negative view of people, while Theory Y
people are identifying with a more positive view of people. Therefore McGregors
theories can offer management and manager insight into their organizations as well as
themselves.

Works Cited
Ott, J. Steven., Sandra J. Parkes, and Richard B. Simpson. "The Human Side of
Enterprise." Classic Readings in Organizational Behavior. Belmont, CA:
Thomson/Wadsworth, 2008. 158-63. Print.