What do you believe?
X. Too much information to employees creates suspicions and rumors. Employees often struggle to offer meaningful suggestions for improvements. When leaders do not hold employees accountable, teams perform poorly. Well-paid employees are less concerned about recognition and appreciation.
Y. Fully informed employees act responsibly . Most employees offer valid suggestions for improvements if management listens. Employees perform better when management helps correct reasonable mistakes without placing blame. When employees’ talents match job requirements, they are less concerned about pay.
Professor Douglas McGregor in 1957 labeled these assumptions as Theory X and Theory Y.
Theory X leaders embrace structure and rely more heavily on lists, deadlines and measurements. They believe rules govern behavior and often micromanage projects.
Because they believe most employees are inherently committed, trustworthy and collaborative, Theory Y leaders rely less on structure while granting employees more freedom and opportunities for growth.
Overusing structure can lower motivation. Employees may feel restricted, increasing the likelihood of turnover. A leader’s confidence in team members’ abilities and commitment may encourage greater productivity and loyalty. That is, leaders’ beliefs sometimes cause them to act in ways that create the very behaviors they were trying to prevent—a self-fulfilling prophecy.
