TIAPS ALB_Module 2B. Managing People

2B.3.2 McGregor’s Theory X, Theory Y
McGregor distinguished between two broadly different approaches by managers to attempt
to motivate employees.
• Theory X managers assume people are basically lazy and do not like working or
taking on additional responsibilities unless there is something to gain personally and
so they need to be closely supervised and coerced into completing tasks. This
requires an autocratic or transactional style of leadership.
• Theory Y managers assume people are inherently conscientious and hard-working. If
left alone they will self-direct, being motivated to fulfil their responsibilities. Individuals
will naturally seek responsibility and rise to the occasion. This requires a more
inclusive or laissez-faire style of leadership with appropriate delegation.
In practice, managers may need to adopt some of the assumptions of both Theory X and
Theory Y to suit the situation – a “carrot-and-stick approach.” However, Theory Y
assumptions support a more enlightened, caring perspective of individuals and an
appropriate focus on their well-being and development.
2B.3.3 Vroom’s Expectancy Theory
Vroom’s model asserts that individuals focus on the outcome and plan their actions based on
their desire for the most favorable personal results. Vroom translated this idea into an
equation:
Motivation = valence x expectancy x instrumentality
• Valence is the level of appeal of the outcome (the reward) to an individual. The
higher the appeal, the greater the motivation. Valence is subjective and varies among
individuals. It is based on perceived value.
• Expectancy is the perceived likelihood that completing the task is achievable. If it
seems impossible or too hard given the effort needed, then motivation will be low.
• Instrumentality relates to the expected reward from completing the task.
The higher the values for each of these variables, the higher the level of motivation.
Managers must try to maximize these variables, recognizing the importance of perception
and the variability of desired rewards. The relative perceived value of praise, financial bonus,
promotion, a pay rise, increased status, additional vacation, and other tangible and
intangible benefits must be understood.
2B.3.4 Hertzberg’s Two-Factor Model
Hertzberg identified two groups of conditions associated with motivation.
• Hygiene factors are those conditions that need to be present. Their absence will
demotivate workers, but when they are present, increasing them does not increase
motivation. This includes a safe and pleasant working environment, the necessary
tools to complete the assigned tasks, policies and procedures, job security, adequate
supervision, and convivial relationships. These are similar to the lower order needs in
Maslow’s pyramid and Theory X assumptions.
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