Many years ago, professor Douglas McGregor,
author of The Human Side of Enterprise,
wrote about how most business owners manage one of two ways based on their intrinsic beliefs about people. And those ideas still hold true today.Theory X: By control
. Theory X is when a manger feels he or she needs to tell employees exactly what to do. According to McGregor, this is based on the Theory X of employee motivation, and the belief that people inherently hate to work and that in order for anything to get done at a company, they have to be threatened and coerced. In fact, they believe employees want to be directed and told what to do.Theory Y: By commitment
. Theory Y is where managers lead taking into consideration the employee's natural desire to work and play hard. People will work hard on objectives that they are committed to achieving. They want as much responsibility as possible.
Most managers' style is a result of believing in Theory X or Theory Y—but not both. Do you think people are lazy and they must be directed to keep them productive? Do you think that most people want to do well and instead you seek to get their commitment so they are productive?Read the full article at SAP Business Innovation Blog.Read more Leadership Watch articles.