Motivation through Theory X&Y from a Project Management perspective

Developed by Marie Elly Ulricke Kristensen

Abstract

In the 1950s large-scale, complex, and interdisciplinary projects emerged. Along with the new trend in project format, new materials, procedures, and methods were developed to support the success of these . Thus, paving the way for projects to be more focused on the Socio-technical aspects and the importance of soft skills .

As projects have continued to become more complicated, this has proven the project manager's importance in leading projects to success . A project manager may have the necessary skills to guide a project team through various project stages and project life cycles, nevertheless team motivation is an essential element of a successful project . Thus, making the ability to motivate a team an important leadership skill for project managers .

The idea that a manager’s attitude has an impact on employee motivation was initially suggested by Douglas Murray McGregor (1906-1964), a Professor of Management at the MIT Sloan School of Management in the late 1930’s and 1940’s . In 1960, McGregor released the book, The Human Side of Enterprise, which proposed two theories by which mangers perceive and address employee motivation . The two antagonistic motivational methods are referred to as Theory X and Theory Y and splits corporate thinking into two camps in their embodiment of attitudes and assumptions . Theory X assumes individuals to require constant attention and punishment to achieve the desired outcome, whereas Theory Y assumes individuals to seek opportunities and improvement, thereby not requiring a controlling environment .

This article will start by introducing the relevant background to the initiation of Theory X and Theory Y, followed by an introduction to the two different motivational methods, their theoretical framework, and how this reflects in the role of a project manager. The article will then introduce the different advantages and disadvantages of each of the motivational methods from a management perspective as well as reflect on the criticism of Theory X and Theory Y. Lastly the article will reflect on the complex work environment in context to choosing a management style based on the motivational theories proposed by McGregor.

Big Idea

Theory X

Theory X management assumes employees as individuals who:

• Abhor work.
• Must be compelled, controlled, and governed to obtain organizational goals.
• Will try to avoid responsibility.
• Favor the strict and controlled work environment.
• Are driven by the threat of punishment and monetary means (linked to Maslow’s lower-level needs and the need for safety).

McGregor argued the conventional management approach behind Theory X to be based on three crucial proposals:

1. Management is responsible for organizing the elements of productive enterprise-money, materials, equipment, and people-in the interests of economic ends

(relate to the PMI Talent Triangle and the sections: Strategic and Business Management skills, ALSO comment that this is the same as Theory Y).

1. With respect to people, this is a process of directing their efforts, motivating them, controlling their actions, and modifying their behavior to fit the needs of the organization

(relate to the PMI Talent Triangle and the sections: Strategic and Business Management skills).

1. Without this active intervention by management, people would be passive-even resistant-to organizational needs. They must therefore be persuaded, rewarded, punished, and controlled. Their activities must be directed. Management's task is thus simply getting things done through other people.

Theory Y

Theory Y management assumes employees as individuals who:

• Have an inherent interest in their work.
• Seek opportunities and responsibility.
• Desire to be self-administered.
• Have capacity to be innovative and creative in solving business problems.
• Desire rewards which satisfy their higher-level needs, such as self-actualization and self-esteem (linked to Maslow’s higher-level needs, the self-fulfillment needs).

McGregor argued the conventional management approach behind Theory Y to be based on four crucial proposals:

1. Management is responsible for organizing the elements of productive enterprise-money, materials, equipment, and people in the interests of economic ends

(relate to the PMI Talent Triangle and the sections: Strategic and Business Management skills, ALSO comment that this is the same as Theory X).

1. People are not by nature passive or resistant to organizational needs. They have become so as a result of experience in organizations.
2. The motivation, potential for development, capacity for assuming responsibility, and readiness to direct behavior toward organizational goals are all present in people-management does not put them there. It is a responsibility of management to make it possible for people to recognize and develop these human characteristics for themselves.
3. The essential task of management is to arrange organizational conditions and methods of operation so that people can achieve their own goals by directing their efforts toward organizational objectives.

Application

Theory X

Management approaches of Theory X can range from a hard to a soft approach.

At one extreme, the project manager can act from the hard approach, which relates to the newer political term "hard power". This approach involves directing behavior based on an implicit use of coercion and threat, strict control of behavior, and close regulation.

The opposite extremity is referred to as the soft approach, which relates to the political term “soft power”. The behavior of management in this relation is revolving around the focus of achieving harmony by satisfying the employees demands and by being lenient. This with the hope that employees will respond more complaisant and accepting to the project manager’s direction.

McGregor underlined that the optimal management approach for Theory X would lie somewhere in between the two extremes. However, he argued that neither of the two approaches are fitting based on the general assumptions of Theory X being incorrect.

Theory Y

In regard to management’s application of Theory Y, McGregor emphasized the following innovative ideas to be consistent with his theory while having proven to be applied with some success:

Decentralization and delegation:

Decentralizing the planning and decision making in a firm, while reducing the quantity of levels of management, referring to the more organic organisational structure with an increased span of control, results in managers having an enlarged number of employees reporting to them . Thereby forcing a manager like a project manager to be unable to direct and control in a conventional manner. Thus, forcing “management by objectives” with a higher level of delegation of responsibility to the employees.

In this scenario, the project manager could follow the basic principle of management by objectives, in order to keep up performance in a decentralized project, while allowing the employees to have more responsibility – thereby supporting the proposed managerial approaches of Theory Y.

Management by objectives outlines five steps which should be used to put the management technique into practice:

1. Review organisational objectives: The manager gains a clear understanding of the organisation’s overall objectives.
2. Set employee objectives: Manager and employee agrees on the objectives the employees should reach during the normal operating period.

• This could be done by the use of SMART goals (link to smart goals) .

1. Monitor progress: Manager and employee regularly checks whether the employees are reaching their objectives.
2. Evaluate performance: Manager judge employee’s goal achievements at the end of the normal operating period.
   1. Evaluation of performance is made easier through the use of SMART goals in step 2.
3. Give rewards: The project manager appraises the employee through rewards based on the extent to which they reached their objectives .

Job enlargement:

The basics of job enlargement revolve around broadening the scope of the employee’s job, by increasing the number of tasks associated with a certain job. The additional tasks are added at an equal level of responsibility within the organization, referring to the term “horizontal loading” . Thus, increasing the flexibility in the employee’s work, while providing an opportunity for the employee to satisfy the social and egoistic needs.

This approach has later on been criticized in comparison to the later invented term job enrichment (link to the limitations section and Herzberg).

Participation and consultative management:

Performance appraisal:

Limitations

Criticism of Theory X

McGregor drew upon Maslow’s Hierarchy of Needs (LINK) theory to criticize Theory X. Based on Maslow’s theory McGregor argued the importance of a satisfied need not being a motivator of behavior. This being of importance to the Theory X assumptions, as the heightened living standards in the modernized society would suffice the physiological and safety needs, resulting in employees being motivated by needs of a higher level than the ones from which the theory derives. Thus, making these human needs unimportant motivators of behavior.

Through exploration of the hard approach, some unpropitious trends have been identified in relation to management force breeding a counterforce response from employees. Thus, making the hard approach prone to behavioral responses like restriction of output, sabotage of management objectives, and belligerent labor unionism. Moreover, difficulties, such as lack of manager’s fulfillment of their role and employees taking advantage of the more laissez-faire environment by lowering performance while demanding more, have been identified in the implementation of the soft approach.

Advantages

Theory X and Theory Y acknowledges a gap commonly seen in different individuals at a workplace . While the two theories are a simplification of the whole truth, some examples of employee behavior might fall under either of the two categories when it comes to motivators of behavior.

As an example, a new employee with no deeper understanding of company culture and project tasks might feel overwhelmed in his/ her position, thereby circumventing additional responsibility. This type of employee is more natural to fall under the Theory X assumptions, and therefore might need the additional attention and punishment from the project manager to stay “on-task” while feeling guided and thereby more secure in the new job position . On the other hand, a more experienced employee is more natural to categorize under the Theory Y assumptions, as the employee understands his/ her tasks, thereby making the employee more prone to inhere work and strive for more self-fulfillment through the job. Having a project manager who allows the experienced employee to grow and take on more responsibility might reap increased motivation and through that an increased achievement of management perspectives .

Disadvantages

A project manager with knowledge of both Theory X and Theory Y might well recognize a mixture of the two assumed employee behaviors at a workplace. While Theory X employees require a controlled and strictly guided environment, this behavior from management is demotivating to the Theory Y employee, who responds positive to the participative environment with more room to grow. Introducing the “hard” part of project management through Theory X and Theory Y to lie in the realization that not all employees respond positively to the same management style . Thus, requiring the project manager to implement a more balanced leadership style to accommodate all types of employee behavior .

Annotated figures and tables

The following list provides sources for used figures and tables in this article:

• Last name, First name (Year): Title

- Comment.

Annotated bibliography

The following list provides resources for further research and study on Theory X and Y:

• Last name, First name (Year): Title

- Comment.