Theories X and Y in Combination for Effective Change during Economic Crisis

Abstract

It has been a fact that sustainability and employee turnover in corporations rely heavily on the different styles of management practiced at given companies nowadays. This paper addresses both theories X and Y of Mc Gregor in economic crisis, where X is the one that might get the poor results focusing on instrumental, physiological values comparing to theory Y where managers are effective leaders with better performance and terminal values promoting self-esteem and actualities. The purpose of this paper is to analyze both theories and determine the effective way to reach the ultimate results. Mc Gregor’s philosophy insists on two fundamental approaches to manage people while combining additional factors other than human nature such as the human relations can play a positive role for effective change. This paper combines a realistic management style to the traditional known autocratic (X) and democratic (Y) styles during economic crisis. Theory X and Y are two different management styles with certain philosophy interpreted by each style manager. They both look at ways and means on how to motivate employees and therefore have a feel of characters of their workers. Each theory tackles its philosophy from its end, for example, theory X believes pushing employees to work by having punishment and rewards can actually be a motivational factor, while theory Y promotes the self-management, self-esteem, management by objective leading to intrinsic and extrinsic rewards.