The Human Side of Enterprise

1. The Human Side of Enterprise Sr. Patricia Tavis ELMP 7773 Daniel Gutmore, Ph. D.

2. Douglas McGregor (1906-1964) • Noted American social psychologist • Wayne State University (B.A., L.L.D.) • Harvard (M.A. , Ph.D.) • 1937-1948: MIT – First full time teacher of psychology • 1948-1954: Antioch College – President • 1954-1964: MIT - School of Industrial Management

3. “What are your assumptions (implicit as well as explicit) about the most effective way to manage people?” • Douglas McGregor • The Human Side of Enterprise

4. Theory X: Assumptions on Human Nature The average human being has an inherent dislike of work and will avoid it if he can. • Must be controlled • Must be directed • “Hard management” • “Soft management”

5. Theory Y: Assumptions on Human Nature The average human being needs to work, actively seeks responsibility and is creative and resourceful. • Self-directed / motivated • Seeks responsibility • Problem-solvers • Intellectual capabilities underused

6. Management Tenets

7. Maslow’s Hierarchy of Needs Basis of McGregor’s “Theory Y” Self Actualization Esteem Belonginess Safety Shelter Food

8. Theory X (ineffective management) Once a need is met, it no longer motivates behavior: therefore only unmet needs are motivational. Theory Y (effective management) Motivational emphasis shifts to social, ego, and self- actualization since most employees have physical and safety needs met. Application of Hierarchy of Needs to Management and Workplace

9. Management Styles of Theory X * Led to ineffective management

10. Management Styles of Theory Y • Decentralization of decision- making authority • Delegation • Job enlargement • Participative management * Led to effective management

11. Management Theory XTheory Y Purpose Produce economic Produce economic results results Application Production Workers Managers & Professionals Conducive to Large scale operations Participation & Problem Solving Style Authoritarian Participative Adopted by Taylorist – followers Mayo’s human relations followers

12. Management Functions Theory X Traditional view of direction and control Theory Y Integration of individual & organizational goals Management Staff Staff Management

13. Scanlon’s Organizational Development (Theory Y) Participatory management based on four concepts: 1. Identity 2. Participation 3. Equity 4. Managerial Competence

14. The Scanlon Plan * Management by integration and self control * Equity Motivation Cost reduction and sharing Effective participation Created organizational control

15. Theory X 1930’s – 1950’s Coercion Everyone learns the same / rote methods Theory Y 1960’s to Present Honors divergent thinking Uses various teaching methodologies Theory X and Theory Y in Educational Settings

16. Teacher – Student Relationships Teacher’s managerial role: • Create (in part) work environment • Assign jobs • Promote students • Interact with students

17. Administrator – Teacher Relationships • Delegation of responsibilities • Job enlargement • Participative style • Performance appraisals

18. Thank you Sr. Patricia Tavis 2006