Theory X And Theory Y: A Case Study

1.0 Theory X and Y

Douglas McGregor's theory X and Y described two assumptions that managers make to motivate and value employees. McGregor claim that Theory X assume employees dislike working, require coercion to complete assigned tasks and look for guidance. In contrast, Theory Y managers assume workers care about the organization; seek for responsibility and capable of regulating their performance. McGregor believed that this theory provides managers a more reality-centred, flexible approach in formulating their organization controlling (Sager, 2015).

1.1 Management Style of Theory X

While looking into the management style, Theory X is negatively related to followers’ satisfaction towards leaders (Gürbüz, Şahin and Köksal, 2014). The key aspect of this management style is no matter what has goes wrong; people are the first to blame, not the process. These managers tend to assumed employees are at fault without further examination (Johnson, 2010).

1.2 Management Style of Theory Y

In contrast, Theory Y management style is based on more optimistic view of human nature. Managers who operate with Theory Y always

Therefore, a four action framework which is referring as the ‘eliminate-reduce-raise-create grid’ was formed to develop business new profile. Under the aspect of eliminate, firms should consider to expel those factors that have no value to customers. Besides, some products or services that are overdesigned in the completion should be reduced well below the industry’s standard. Thirdly, those factors that can attract customers should be raised by the firm because these factors are important to gain more customers. In addition, firms are encouraged to take initiative to create distinctive values which have been ignored by the industry. Eventually, the Eliminate-Reduce-Raise-Create Grid is applied to identify the new market blue ocean (Chang,