MacGregor’s XY Theory and Ouchi’s Theory Z: https://agile-mercurial.com/2019/06/28/macgregors-xy-theory-and-ouchis-theory-z/ Blog: https://agile-mercurial.com YouTube: https://www.youtube.com/channel/UCPM82of2YuqIR1SgLGHa1eg

1. Theories X,Y, and Z
Douglas MacGregor and William Ouchi
Management Styles

2. 2
Theory X and Theory Y
Management Approaches Introduced
by Douglas Macgregor in 1960
• MacGregor was a student of Abraham
Maslow, creator of the Hierarchy of Needs
• Theory X and Theory Y are assumptions
about all employee personalities made by a
manager.

3. Theory X and Theory Y
3

4. Theory X
4
Management Style
• Managers are pessimistic of
the employee’s intentions
• Managers are authoritarian
• They prefer control over the
employees
• Must be hands-on and a
Micromanager
Assumed Personality of Employee
• Avoid responsibility
• Dislike work
• They prefer to be directed
• They are unambitious
• They have a preference for
security over autonomy

5. Theory Y
5
Management Style
• Managers are more optimistic
of employee’s intentions
• Managers believe that
employees prefer more
autonomy
• They allow employees to
make more decisions
Assume Personality of Employee
• May believe there is little difference
between work and play
• They want to be self-directed and have as
little exerting control over them as
possible
• They will work harder for goals they
believe in
• They accept responsibility and even seek
it out
• They tend to be ambitious
• They have a high degree of imagination
and creativity

6. 6
Theory Z
Management Approach
Introduced William Ouchi in the
1980s
• Evolved from Theory X and Y
• Merged Japanese leadership
styles with U.S. Cultural values

7. Theory Z
7
• Work to be proactive, but not overly micromanaging
• Try to build long-term relationships
• Work to cultivate individual responsibility rather than assume
its existence or lack of existence
• Have more informal control over subordinates
• Works to create more group collaboration
Theory Z Managers

8. 8
Sources
• Rice University, (N.D.) MacGregor’s Theory X and Y. Retrieved
From https://opentextbc.ca/businessopenstax/chapter/mcgregors-theories-x-and-y/
Joshua Render
https://agile-mercurial.com
Theory XY and Z: https://agile-mercurial.com/2019/06/28/macgregors-xy-theory-and-ouchis-theory-z/
https://twentyfirstcenturyworkforce.com/