ASSUMPTION AND IMPLICATION

Theory X and Theory Y represent two sets of assumptions about human nature and human behavior that are
relevant to the practice of management. Theory X represents a negative view of human nature that assumes
individuals generally dislike work, are irresponsible, and require close supervision to do their jobs. Theory Y
denotes a positive view of human nature and assumes individuals are generally industrious, creative, and able
to assume responsibility and exercise self-control in their jobs. One would expect, then, that managers holding
assumptions about human nature that are consistent with Theory X might exhibit a managerial style that is
quite different than managers who hold assumptions consistent with Theory Y.

The first section explains the development of Theory X and Theory Y. Second, the effect of Theory X and
Theory Y on management functions is discussed. Third is a criticism of Theory Y followed by the concluding
section, Theory X and Theory Y in the twenty-first century.

CONCEPTUALIZATION
AND DEVELOPMENT

After the Hawthorne experiments and the subsequent behavioral research of the 1930s and 1940s, the human
relations approach to management joined the classical perspective as a major school of management thought.
Whereas the classical school as espoused by management pioneers such as Frederick Taylor andHenri
Fayol focused on principles of management, scientific selection and training, and worker compensation, the
human relations approach emphasized behavioral issues such as job satisfaction, group norms, and supervisory
style.

The human relations model was hailed as a more enlightened management paradigm because it explicitly
considered the importance of individual and how managers could increase productivity by increasing workers'
job satisfaction. The end goal for management increased employee productivity; the assumption was that
satisfied workers would be more productive compared with workers who felt antagonized by the companies
they worked for.

In the 1950s, Douglas McGregor (1906-1964), a psychologist who taught at MIT and served as president
of Antioch College from 1948-1954, criticized both the classical and human relations schools as inadequate for
the realities of the workplace. He believed that the assumptions underlying both schools represented a negative
view of human nature and that another approach to management based on an entirely different set of
assumptions was needed. McGregor laid out his ideas in his classic 1957 article "The Human Side of
Enterprise" and the 1960 book of the same name, in which he introduced what came to be called the
newhumanism.

McGregor argued that the conventional approach to managing was based on three major propositions, which
he called Theory X:

1. Management is responsible for organizing the elements of productive enterprise-money, materials,

equipment, and people-in the interests of economic ends.
2. With respect to people, this is a process of directing their efforts, motivating them, controlling their
actions, and modifying their behavior to fit the needs of the organization.
3. Without this active intervention by management, people would be passive-even resistant-to
organizational needs. They must therefore be persuaded, rewarded, punished, and controlled. Their
activities must be directed. Management's task was thus simply getting things done through other
people.

According to McGregor, these tenets of management are based on less explicit assumptions about human
nature. The first of these assumptions is that individuals do not like to work and will avoid it if possible. A
further assumption is that human beings do not want responsibility and desire explicit direction. Additionally,
individuals are assumed to put their individual concerns above that of the organization for which they work
and to resist change, valuing security more than other considerations at work. Finally, human beings are
assumed to be easily manipulated and controlled. McGregor contended that both the classical and human
relations approaches to management depended this same set of assumptions. He called the first style of
management "hard" and identified its methods as close supervision, tight controls, and coercion.

The hard style of management led to restriction of output, mutual distrust, unionism, and even sabotage.
McGregor called the second style of management "soft" and identified its methods as permissiveness and need
satisfaction. McGregor suggested that the soft style of management often led to managers' failure to perform
their managerial role. He also pointed out that employees often take advantage of an overly permissive
manager by demanding more but performing at lower levels.

McGregor drew upon the work of Abraham Maslow (1908-1970) to explain why Theory X assumptions led to
ineffective management. Maslow had proposed that man's needs are arranged in levels, with physical and
safety needs at the bottom of the needs hierarchy and social, ego, and self-actualization needs at upper levels of
the hierarchy. Maslow's basic point was that once a need is met, it no longer motivates behavior; thus, only
unmet needs are motivational. McGregor argued that most employees already had their physical and safety
needs met and that the motivational emphasis had shifted to the social, ego, and self-actualization needs.
Therefore, management had to provide opportunities for these upper-level needs to be met in the workplace, or
employees would not be satisfied or motivated in their jobs.

Such opportunities could be provided by allowing employees to participate in decision making, by redesigning
jobs to make them more challenging, or by emphasizing good work group relations, among other things.
According to McGregor, neither the hard style of management based on the classical school nor the soft style of
management inspired by the human relations movement were sufficient to motivate employees. Thus, he
proposed a different set of assumptions about human nature as it pertains to the workplace.

McGregor put forth these assumptions, which he believed could lead to more effective management of people
in the organization, under the rubric of Theory Y. The major propositions of Theory Y include the following:

1. Management is responsible for organizing the elements of productive enterprise-money, materials,

equipment, and people in the interests of economic ends.
2. People are not by nature passive or resistant to organizational needs. They have become so as a result of
experience in organizations.
3. The motivation, potential for development, capacity for assuming responsibility, and readiness to direct
behavior toward organizational goals are all present in people-management does not put them there. It
is a responsibility of management to make it possible for people to recognize and develop these human
characteristics for themselves.
4. The essential task of management is to arrange organizational conditions and methods of operation so
that people can achieve their own goals by directing their efforts toward organizational objectives.

Thus, Theory Y has at its core the assumption that the physical and mental effort involved in work is natural
and that individuals actively seek to engage in work. It also assumes that close supervision and the threat of
punishment are not the only means or even the best means for inducing employees to exert productive effort.
Instead, if given the opportunity, employees will display self-motivation to put forth the effort necessary to
achieve the organization's goals. Thus, avoiding responsibility is not an inherent quality of human nature;
individuals will actually seek it out under the proper conditions. Theory Y also assumes that the ability to be
innovative and creative exists among a large, rather than a small segment of the population. Finally, it assumes
that rather than valuing security above all other rewards associated with work, individuals desire rewards that
satisfy their self-esteem and self-actualization needs.

Although McGregor did not believe that it was possible to create a completely Theory Y-type organization in the
1950s, he did believe that Theory Y assumptions would lead to more effective management. He identified
several approaches to management that he felt were consistent with the precepts of Theory Y. These
included decentralization of decision-making authority, delegation, job enlargement, and participative
management. Job enrichment programs that began in the 1960s and 1970s also were consistent with the
assumptions of Theory Y.
In the 1970s, 1980s, and 1990s, McGregor's conceptualization of Theory X and Theory Y were often used as the
basis for discussions of management style, employee involvement, and worker motivation. Empirical evidence
concerning the validity of Theory X and Theory Y, however, was mixed. Some writers suggested that
organizations implementing Theory Y tended to revert back to Theory X in tough economic times.

Others suggested that Theory Y was not always more effective than Theory X, but that the contingencies of each
managerial situation determined which of the approaches was more appropriate. Still others suggested
extensions to Theory Y. One of these, William Ouchi's Theory Z, attempted to combine the strength of
American management philosophies based on Theory Y with Japanese management philosophies.

Along with writers such as Argyris and Likert, McGregor was one of several important humanist writers of the
mid-twentieth century who argued that traditional organizational hierarchies create a state of dependence
between subordinates and their managers and served as a bridge between the human relations school and a
new form of organizational humanism based on Theory Y.

NEED HIERARCHY THEORY

Maslow's hierarchy of needs is often portrayed in the shape of a pyramid with the largest, most fundamental levels
of needs at the bottom and the need for self-actualization at the top.[1][9] While the pyramid has become the de facto way to
represent the hierarchy, Maslow himself never used a pyramid to describe these levels in any of his writings on the
subject.
The most fundamental and basic four layers of the pyramid contain what Maslow called "deficiency needs" or "d-
needs": esteem, friendship and love, security, and physical needs. If these "deficiency needs" are not met with the
exception of the most fundamental (physiological) need there may not be a physical indication, but the individual will
feel anxious and tense. Maslow's theory suggests that the most basic level of needs must be met before the individual will
strongly desire (or focus motivation upon) the secondary or higher level needs. Maslow also coined the
term Metamotivation to describe the motivation of people who go beyond the scope of the basic needs and strive for
constant betterment.[10]
The human mind and brain are complex and have parallel processes running at the same time, thus many different
motivations from various levels of Maslow's hierarchy can occur at the same time. Maslow spoke clearly about these
levels and their satisfaction in terms such as "relative," "general," and "primarily." Instead of stating that the individual
focuses on a certain need at any given time, Maslow stated that a certain need "dominates" the human organism.[11] Thus
Maslow acknowledged the likelihood that the different levels of motivation could occur at any time in the human mind,
but he focused on identifying the basic types of motivation and the order in which they should be met.

Physiological needs
Physiological needs are the physical requirements for human survival. If these requirements are not met, the
human body cannot function properly and will ultimately fail. Physiological needs are thought to be the most important;
they should be met first.
Air, water, and food are metabolic requirements for survival in all animals, including humans. Clothing and shelter
provide necessary protection from the elements. While maintaining an adequate birth rate shapes the intensity of the
human sexual instinct, sexual competition may also shape said instinct.

Safety needs
With their physical needs relatively satisfied, the individual's safety needs take precedence and dominate
behavior. In the absence of physical safety due to war, natural disaster, family violence, childhood abuse, etc. people
may (re-)experience post-traumatic stress disorder or transgenerational trauma. In the absence of economic safety due to
economic crisis and lack of work opportunities these safety needs manifest themselves in ways such as a preference
for job security, grievance procedures for protecting the individual from unilateral authority, savings accounts, insurance
policies, reasonable disability accommodations, etc. This level is more likely to be found in children because they
generally have a greater need to feel safe.
Safety and Security needs include:
 Personal security
Financial security
Health and well-being
Safety net against accidents/illness and their adverse impacts
Love and belonging
After physiological and safety needs are fulfilled, the third level of human needs is interpersonal and involves feelings
of belongingness. This need is especially strong in childhood and can override the need for safety as witnessed in children
who cling to abusive parents. Deficiencies within this level of Maslow's hierarchy due
to hospitalism, neglect, shunning, ostracism, etc. can impact the individual's ability to form and maintain emotionally
significant relationships in general, such as:

Friendship
Intimacy
Family
According to Maslow, humans need to feel a sense of belonging and acceptance among their social groups, regardless if
these groups are large or small. For example, some large social groups may include clubs, co-workers, religious groups,
professional organizations, sports teams, and gangs. Some examples of small social connections include family members,
intimate partners, mentors, colleagues, and confidants. Humans need to love and be loved both sexually and non-
sexually by others.[2] Many people become susceptible to loneliness, social anxiety, and clinical depression in the
absence of this love or belonging element. This need for belonging may overcome the physiological and security needs,
depending on the strength of the peer pressure.

EsteemAll humans have a need to feel respected; this includes the need to have self-esteem and self-respect. Esteem
presents the typical human desire to be accepted and valued by others. People often engage in a profession or hobby to
gain recognition. These activities give the person a sense of contribution or value. Low self-esteem or an inferiority
complex may result from imbalances during this level in the hierarchy. People with low self-esteem often need respect
from others; they may feel the need to seek fame or glory. However, fame or glory will not help the person to build their
self-esteem until they accept who they are internally. Psychological imbalances such as depression can hinder the person
from obtaining a higher level of self-esteem or self-respect.
Most people have a need for stable self-respect and self-esteem. Maslow noted two versions of esteem needs: a "lower"
version and a "higher" version. The "lower" version of esteem is the need for respect from others. This may include a need
for status, recognition, fame, prestige, and attention. The "higher" version manifests itself as the need for self-respect. For
example, the person may have a need for strength, competence, mastery, self-confidence, independence, and freedom.
This "higher" version takes precedence over the "lower" version because it relies on an inner competence established
through experience. Deprivation of these needs may lead to an inferiority complex, weakness, and helplessness.
Maslow states that while he originally thought the needs of humans had strict guidelines, the "hierarchies are interrelated
rather than sharply separated".[5] This means that esteem and the subsequent levels are not strictly separated; instead, the
levels are closely related.

Self-actualization
Main article: Self-actualization
"What a man can be, he must be."[12] This quotation forms the basis of the perceived need for self-actualization. This level
of need refers to what a person's full potential is and the realization of that potential. Maslow describes this level as the
desire to accomplish everything that one can, to become the most that one can be.[13] Individuals may perceive or focus on
this need very specifically. For example, one individual may have the strong desire to become an ideal parent. In another,
the desire may be expressed athletically. For others, it may be expressed in paintings, pictures, or inventions.[14] As
previously mentioned, Maslow believed that to understand this level of need, the person must not only achieve the
previous needs, but master them.
WELL-PLANNED TRAINING PROGRAM -- a program, with a structure and logic to it that
make sense for your organization. It should continue throughout the life of the organization and
include initial training for new staff, staff development (ongoing training for all staff), and
professional development (the opportunity to gain new knowledge or skills, or to move to the next
level of expertise).

Creating such a program involves planning that includes the people to be trained, and looks at both
what kind of shape the training program should take and what areas it should cover. The
development of a training program also requires thinking about methods (how the training will be
presented), logistics (where and when training will be held, what's necessary to make it all go well,
etc.), and evaluation (how you'll find out what was valuable and what was not, and what you should
do to improve the program over time).

Developing a training program that meets the needs of both staff members and the organization,
and keeps the organization growing and changing for the better, is a big job. But, the benefits to be
gained will far outweigh the effort.

PRINCIPLED-CENTERED LEADERSHIP POWER

What does empowerment mean to you? Perhaps more important, what does it mean to most people
throughout your organization?

Perhaps the first step in creating an empowered work force is having everyone gain a shared
understanding of what empowerment is- and what it is not. It is the powerful governing principle at
the managerial level of any organization.

Many managers think of empowerment as delegating decision making to the lowest level possible.
In practice, we too often find "empowering" bosses delegating responsibility to subordinates
without sufficient authority, understanding, resources or supportive guidance to be effective. People
who think they are "empowered" too often resist the limitations and guidance that must accompany
any responsibility. True empowerment is not: responsibility without authority or resources,
authority to "do your own thing" without limits or accountability, power without focus or
consequences, or abandonment by the boss or supervisor.

The root of the English word "empowerment" is power- the ability to do, to accomplish, to perform
or enable. The prefix "em" comes from the Latin and Greek, meaning "in" or "within."
Empowerment, therefore, can suggest the power within people, the enormous reservoir of
creativity, activity and potential contribution that lies within every worker, largely untapped by
organizational leadership and management.

In a deeper and more significant sense, employees will become empowered as they are able to
apply principles by using core processes. Empowerment comes as people contribute their full
potential in attaining both personal and organizational objectives. Your role as an empowering
leader might be considered this: To create conditions in which all employees can contribute their
maximum potential capacity to achieve the strategic goals and desired results of the organization in
meeting stakeholder needs. Empowerment is not a program; it is a core condition for quality.

Think of your role as a leader in comparison to that of a gardener. What does it take to grow a
world-class garden? There are many variables, including events in the environment over which you
have no control. But the most important principle defining your role is this: the life of the plant is
within the seed, not within the gardener!

A gardener creates conditions enabling the life within the seeds to germinate, to blossom, to bear
fruit. You cannot guarantee that every seed will yield its maximum possible output, and some
seasons will realize a more abundant harvest than others. But if you create the right conditions, over
time you can predict that your garden will produce consist ently excellent results.

So it is with developing a quality organization. Your organization is not a machine, and your
employees are not interchangeable parts. People are not things. Your organization is a complex,
organic ecosystem; you cultivate people, you don't fix or repair them. You can't give, bestow, grant,
authorize, delegate or impose empowerment. You create conditions to develop it.

The critical conditions for cultivating an empowering environment include:

Developing trustworthiness and trust; an environment where creativity and managed risks are
encouraged; and helping people learn from mistakes.

Creating a system of win-win agreements as the core process for developing mutually beneficial
relationships among employees and between the organization and outside stakeholders.

Supporting and encouraging self-directed work teams.

Aligning mission and strategy with customer needs and other forces in the dynamic marketplace,
and then organizing structure and systems to support the strategy and each other.

Fostering personal and organizational self-accountability through consistent and frequent 360
degree feedback.

Adopting an empowering style of leadership and management that nurtures, coaches, mentors,
releases, encourages and supports people in achieving their best.

When organizational leaders focus on developing conditions of empowerment, they will cultivate a
quality culture of effective, productive, interdependent relationships. Such an environment can
release within employees the power to contribute their maximum potential to achieving the mission
and strategic goals of their organizations.
 REACTIONS FOR SONA!

Disbursement Acceleration Program (DAP):

Pres. PNoy explained the importance of the Disbursement Acceleration Program (DAP) as he defended his
stance, despite the controversy surrounding its implementation. He showed all the projects funded by DAP that
came from the savings of the national government. The Pres. noted that because of DAP, it was able to help
TESDA scholars achieved their goals even showcasing a testimonials from benificiaries of the program.

Through DAP, the government was able to financed the Conditional Cash Transfer Program which was branded
by the government as 4Ps or the Pantawid Pamilyang Pilipino Program.

Pres. Aquino also lobbied the DAPs contribution to the Philippine economy as the administration was able to
manage the countrys budget as well as its debt effectively. He also noted the investment grades status given to
the Philippines and even mentioned the International Civil Aviation Administrations ban lifting.

Business, Finance, Economy, Public Works & Transportation:

Pres. PNoy shared how the Philippines became one of the leading countries in Asia for its growth in GDP and
GNP. He also noted that the employment rate of the country had increased and reflects how his administration
handled the labor policies.

According to the President, the Infrastructure projects have doubled even without doubling to raise taxes.
President PNoy noted that there is P28 billion savings at the Department of Public Works and Highways
because of the corruption in the agency have been cut.

The President also boasted that from the start of his term, a total of 2,184 kilometers of national roads were
completed, seven Public Private Partnership (PPP) projects worth P62.6 billion were approved. He noted that
the TPLEX will reach Rosario, La Union soon, aside from mentioning several projects underway, such as the
Laguna Lakeshore Expressway Dike to help reduce flooding, ease traffic.

Peace & Order, Disaster Management:

Pres. Aquino mentioned the latest development after the controversial Zamboanga siege. He noted that P3.5
billion allotted for infrastructure projects, and housings in Zamboanga City. He also noted the recent
developments in the rehabilitation efforts in the earthquake-hit Bohol, the typhoon Yolanda affected provinces.
The President also thanked the international community for their help in the recovery effort and on their help for
Yolanda aid.

The President also mentioned some numbers in relation to labor with a total of 221,987 jobs created during the
rehabilitation period of those who were affected by calamities. He also discussed the governments
modernization of the AFP by purchasing aircrafts, helicopters, assault rifles, naval vessels and radar systems
under the AFP modernization program.
The success of the governments effort on reinforcing the police and army forces was also noted as an
achievement as the government achieved the 1:1 pistol ratio. Pres. PNoy also cited the PNPs Opland: Lambat
and Oplan: Katok in fighting crimes in Metro Manila, noting that the security situations has greatly improved.

The reforms is also under way in the governments most controversial agency, the Bureau of Customs which
according to the President he had reset the entire agency. He also cited the ongoing agreeement with the
Bangsamoro, pushing for the Bangsamoro Basic Law before year-end.

Energy, Power, Utility and Agriculture:

President PNoy admits the delay of the new power plants, but he noted that it needs to be addressed soon so
power and energy resources can be managed well for future shortage. The Philippines is also looking forward
for its plans to import more rice to bring down the rice prices in the domestic market. He also warned those rice
traders hoarding stocks of rice to be careful with their illegal activities because the government will surely go
after them.

Budget and Finance:

Pres. PNoy expressed his proposition for he passage of the Supplemental Budget for the year 2014 in the
Philippine Congress. He also told the viewing public about the critics of his administrations, saying that the
loudest ones dont want reforms in the government, Pres. Aquino even underscored that his critics are against
he whole nation or the Filipino people.

Moving Forward:
Pres. Aquino also made an advised for choosing the countrys next leader in the upcoming 2016 Presidential
Election. He was quoted as saying Sino ang walang dudang magpapatuloy sa transformasyong ating
isinakatuparan? The President also noted that The Filipino is worth living for, the Filipino is definitely worth
fighting for.

The Philippine President ended his speech with To my Bosses: You are behind the transformation we are
enjoying. You are the key to continuing all the positive changes we have achieved. I fully believe that, whether I
am here or not, the Filipino is headed towards the rightful destination. nd so, I will leave it here. Good
afternoon to all of you. Thank you very much.he said.