Overview of Theory X, Y, and Z Management Styles

Which type of management style is predominant in the organization you work for? Theory X, Y, or Z? Yes, these three styles are real - not something I just made up.

Theory X assumes most people are basically in need of constant direction and control, and are not particularly responsible. Employees tend to be viewed as lazy, disliking work, and needing mixture of financial inducements and threat of loss of their job to make them productive (`carrot and stick' mentality). In general, the Theory X supervisor/manager distrusts subordinates to think and act in the best interests of the organization.

Theory Y assumes most people want to fulfill themselves. They seek self-respect, self-development and self-fulfillment at work, as in their daily lives. In general, the Theory Y supervisor/managers have much more faith in subordinates. This approach works well in many modern organizations that do not require constant supervision of their employees.

Theory Z is the participative management model. The Theory Z manager assumes that employees are motivated by a strong sense of commitment to be a part of something worthwhile.  Building trust among all organizational members is central to raising productivity. This style tends to prevail amongst 21^st century ‘knowledge worker’ organizations.

All good managers should understand these three styles of management and use the style best suited for their organization, its culture, and the tasks at hand. 

* See eNotes on Theory X, Y and Z Management. Also read Management in the 21st Century.