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"Douglas McGregor, one of Maslow’s students, influenced the study of motivation with his formulation of two contrasting sets of assumptions about human nature—Theory X and Theory Y. The Theory X management style is based on a pessimistic view of human nature and assumes the following: • The average person dislikes work and will avoid it if possible. • Because people don’t like to work, they must be controlled, directed, or threatened with punishment to get them to make an effort. • The average person prefers to be directed, avoids responsibility, is relatively unambitious, and wants security above all else. C O N C E P T C H E C K 1. What is Maslow’s hierarchy of needs, and how does it help in understanding human motivation? 2. What are some criticisms of Maslow’s hierarchy? 342 Chapter 9 Motivating Employees This OpenStax book is available for free at http://cnx.org/content/col25734/1.7\n\nThis view of people suggests that managers must constantly prod workers to perform and must closely control their on-the-job behavior. Theory X managers tell people what to do, are very directive, like to be in control, and show little confidence in employees. They often foster dependent, passive, and resentful subordinates. In contrast, a Theory Y management style is based on a more optimistic view of human nature and assumes the following: • Work is as natural as play or rest. People want to and can be self-directed and self-controlled and will try to achieve organizational goals they believe in. • Workers can be motivated using positive incentives and will try hard to accomplish organizational goals if they believe they will be rewarded for doing so. • Under proper conditions, the average person not only accepts responsibility but seeks it out. Most workers have a relatively high degree of imagination and creativity and are willing to help solve problems. Managers who operate on Theory Y assumptions recognize individual differences and encourage workers to learn and develop their skills. An administrative assistant might be given the responsibility for generating a monthly report. The reward for doing so might be recognition at a meeting, a special training class to enhance computer skills, or a pay increase. In short, the Theory Y approach builds on the idea that worker and organizational interests are the same. It is not difficult to find companies that have created successful corporate cultures based on Theory Y assumptions. In fact, Fortune ’s list of “100 Best Companies to Work For” and the Society for Human Resource Management’s list of “Great Places to Work” are full of companies that operate using a Theory Y management style. Starbucks, J. M. Smucker, SAS Institute, Whole Foods Market, and Wegmans are all examples of companies that encourage and support their workers. Genencor, a biotechnology firm listed on America’s Best Places to Work five times, has a culture that celebrates success in all aspects of its business. Employees can reward colleagues with on-the-spot awards for extraordinary effort. According to the company’s former CEO, Robert Mayer, “Genencor is truly unique among U.S. companies of any size. It is a model for innovation, teamwork, and productivity—and a direct result of our ‘work hard, play hard, change the world’ philosophy. Investing in our employees has always been good business for Genencor.” 3"