19. X & y theories of motivation.

The work of managers is to ensure that staff work efficiently in an organization. To achieve this it’s clear that managers must know what motivates people.

McGregor's Theory X and Theory Y suggest sets of assumptions about behaviour. In his book “The Human Side of the Enterprise”, McGregor specifically refers to the theoretical assumptions of management that underlie its behaviour. He sees two noticeably different sets of assumptions made by managers about their employees.

The first set regards employees as being inherently lazy, requiring control, avoiding responsibility and only seeking security. This theory is called Theory X, which has emphasis on control and extrinsic rewards. Such rewards are those provided by the organization, and beyond the control of the individual, such as pay, promotion, working conditions etc. Theory X is very similar to Schein’s idea of Rational-economic Man.

The second set of assumptions sees Man in a more favorable light. In this case employees are seen as liking work, which is as natural as rest or play; they do not have to be controlled and coerced, if they are committed to the organization's objectives; under proper conditions they will not only accept but also seek responsibility; more rather than less people are able to exercise imagination at work. This part of McGregor theory relates to intrinsic rewards which are derived from the fulfillment of the individual's personal needs, such as self-esteem or personal growth, and over which he can exercise personal control. By the way, intrinsic factors, in contrast to extrinsic factors, are more likely to be perceived as producing job satisfaction. So, these are the assumptions of Theory Y and they are closely related to Schein’s Self-actualizing Man.

As any study McGregor theory has its advantages and disadvantages. For instance, among benefits we can distinguish that it illustrates clear division into two extreme types of employee’s behaviors. So, managers can consider which kind of motivation is the most appropriate for each type of subordinate. On the other hand, such approach could lead to misunderstanding that each employee necessarily belongs to one of these types.

In conclusion, Theory X and Theory Y have made their major impact in the managerial world rather than in the academic world. The two labels have become part of the folklore of “management style” and they do help to identify extreme forms of management style, but there is a danger that they may be seen only as an “either-or” style. In real-life a blend of the two theories may provide the best prescription for effective management.

20. Expectancy theory of motivation.

One set of ideas studying the process of motivation has been named “Expectancy Theory” which was developed by V.H. Vroom and E.E. Lawler in the United States during the 1960's. A key point in this approach is that an individual's behavior is formed not on some sense of objective reality, but on his own perception of reality, i.e. how he actually sees the world around him.

Expectance theory states that people tend to choose behavior that they believe will help them achieve their personal goals and avoid behaviors that they believe will lead to undesirable personal consequences. When an employee thinks about a decision to exert more effort at work, he usually considers 3 questions: the expectance question, the instrumentally and valuence questions.

Expectance refers to a person’s estimate of how likely it is that a certain level of effort will lead to the intended behavior or performance results. Employees who believe that exerting more efforts results in better performance, generally show higher levels of performance than employees who don’t believe that their effort will pay off.

Instrumentality refers to a person’s perception of how useful the intended behavior or performance will be for obtaining desired outcomes.

Valuence is the value of the outcome to the individual. Valences are personal.

Also its worth mentioning that effective performance may not always lead to the rewards anticipated by the individual. Generally, rewards may be intrinsic or extrinsic.

Intrinsic rewards are those which are derived from the fulfillment of the individual's personal needs, such as self-esteem or personal growth, and over which he can exercise personal control. Extrinsic rewards are those provided by the organization, and beyond the control of the individual, such as pay, promotion, working conditions etc. Several researches have suggested that the rewards associated with intrinsic factors are more likely to be perceived as producing job satisfaction. The extrinsic rewards are less likely to come up to the individual's expectations.

Expectance theory provide a general guide to the factors that determine the amount of effort a worker puts forth. It also helps explain how workers’s goals influence its efforts.

In conclusion, I’d like to say that the Expectancy theory has a significant place not only among procedural theories, as it takes a comprehensive view of motivational process, but also between all motivation studies.