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CHOOSING A MANAGEMENT STYLE

If you have taken any courses on management or motivation in the last thirty years, you probably have already noticed that Statements 1 and 2 are modified versions of the classic Theory X and Theory Y competing assumptions about worker motivation.  They were originally suggested by Douglas McGregor in his book, The Human Side of Enterprise, back in 1960.  McGregor argued that the Statement 1/Theory X assumptions ere dead wrong, although they were the dominant assumptions of managers at the time and remain the assumptions of many manager and business owners today.  McGregor proposed that business managers would benefit greatly from adopting Statement 2/Theory Y beliefs, since such beliefs would lead to a better place to work and greater productivity.

Since McGregor published his ideas, they have sparked a lot of debate and research.  Numerous researchers throughout the 1960s and 1970s in particular tried to establish once and for all which set of assumptions - Statement 1/Theory X or Statement 2/Theory Y - was best.  Which set of assumptions, they asked, was most correct about the majority of people and which would lead to the best and most productive work environment?  After over thirty years, you would think we would have an answer.  We don't.  The fact is that there is no clear evidence that people in general are naturally more like the description in Statement 1 than the description in Statement 2.  Does that mean that the assumptions you hold about people don't matter?  Not at all.  In fact, there is strong evidence to suggest that if you organize and manage your business according to Statement 1/Theory X assumptions, you might break your businesses.

Here are five good reasons for operating your business according to Statement 2/Theory Y assumptions:

Statement 1/Theory X work doesn't exist anymore.  We can no longer break down work into simple tasks as we once could.  If anything, the world of business is becoming more chaotic.  Out of that chaos comes complexity.  Plus, it is becoming almost impossible to run a business today without taking advantage of new technology.  When we introduce that technology, the manual, repetitive, simple work goes away.  We are left with the complex, changing, and creative work the technology can't handle.

The volatility and chaos of American business today is making it increasingly difficult for any company - large or small - to offer employees a guarantee of job security. Even large corporations have been forced into massive layoffs. Chances are most of your employees have been touched in some way by corporate America's rash of layoffs and downsizing. If they don't have a relative or friend who lost a job and promise of lifelong security, they certainly have read enough about those who have. If all you have to offer your workers is the promise of a career with your company, they probably won't believe you. Today, you have to offer your employees something more than a job.

Statement I/Theory X assumptions that work is primarily an economic exchange aren't valid anymore. If your people are working for you only for the money, they won't give their best effort. They will work just at the level to avoid losing their paycheck  That's just not sufficient today. If you are going to run a successful business today, you are going to have to ask for and obtain extraordinary performance from all of your people all of the time.  Competition is  such that it is really that tough to be successful.

It is clear in the 1990s that the keys to success for any company are rapid innovation, world-class quality, and superior customer service. To stay ahead today, you are going to have to be constantly finding new products, new services, and new ways of doing things to stay ahead of your competitors.  In short, you are going to have to be creative and innovative.  What's more, the quality of the products and services you provide had better be first class, or at least demonstrate real value to your customers. Consumers today are becoming very sophisticated and very cautions about their spending. Finally, consumers are becoming very vocal about service - or lack of service. Your customers today really want it all for their available dollars. And you had better be prepared to give it to them. But lazy, uncommitted Statement I/Theory X employees won't produce the quality, service, and innovation your company needs to survive. Only Statement 2/Theory Y employees will do that.

Finally, you can no longer rely upon control and close supervision to get your people to perform. You can't be everywhere all the time. You can't watch and check everything your people do. And, you can't keep hiring checkers and watchers. One of the reasons large companies have downsized by laying off thousands of middle managers, supervisors, and inspectors is that checking and inspecting are too expensive.

At the beginning of this chapter, we presented two statements - two sets of assumptions you might hold about your people. Go back and reread Statement 2. Then, read the implications of that statement presented elsewhere m this article. If you are not managing your business according to Statement 2, reconsider what you are doing. Ask yourself what changes you need to make. More important, ask your employees how you need to change. You will be glad you did. You can't afford to operate from the wrong set of assumptions - not in today's business climate.

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