Human Side of Enterprise

This book has influenced organizational management and development for decades. In his book, "The Human Side of Enterprise", McGregor examined theories on the behavior of individuals at work. His examination included Abraham Maslow's work on human motivation which greatly influenced his work. From his examination, he formulated two models that he called Theory X and Theory Y. Theory Y is based on the traditional assumption that people don't really like to work and would only work if they were threatened in some way. Management assumes that employees would avoid work if possible. Based on this belief, managers would attempt to control workers in order to "make them work". Theory Y is based on the asssumption that people have a natural interest in work when it is a satisfying experience. They will apply self control and self-direction in meeting the objectives of the organization without external control or threats of punishment. In "The Human Side of Enterprise", McGregor demonstrated how Theory Y affected the management of promotions and salaries and the development of effective managers. With the Theory Y (Participative Management Style), there were positive results. When management acknowledges that it is under estimating the potential of its employees and incorporates Theory Y assumptions, then it can focus its efforts on developing improved applications of Theory Y.Although some organizations may find it difficult to incorporate Theory Y, it is still worth the effort to train management using this principle. The potential increase in productivity would be worth pursuing. I would recommend this book to anyone who is a involved in organizational management.

This book, written in 1960, is one of the true management classics, one of the greatest and most influential management books of the past century. McGregor describes Theory X and Theory Y, two fundamentally different ways managers view their employees. McGregor describes Theory X as the dominant view: people ar seem as lazy, not very capable, unwilling to work (unless you make them work), opportunistic and prepared to deceive (providing they think they won't be caught). Theory Y views people in a much more positive way: they are seen as intrinsically motivated, willing to work and basically honest. Now the essential point: the way you view people determines the way you treat them and the way you interpret their behavior, which determines the way they will respond to you, which in turn will reinforce the way you view(ed) them. In other words: both Theory X and Theory Y are true because they create their own reality! They are self-fulfilling prophecies. If you have a choice, what do you choose? This book, written many years ago, is still an interesting read and I think you can still read it in 2060 and find it relevant and interesting.

McGregor really elevates management to a higher plane: this book is at least as good and important as James McGregor Burns' "Leadership." The book is a treatise against traditional command and control management: it is an optimistic book, buoyant with ideas on how even non-management is capable of creativity and self-direction (I refer here to the influence of Abraham Maslow's ideas on his work). I couldn't help but be wowed by McGregor's faith in common workers (one of his ideas is that employees should evaluate themselves, for instance, instead of getting evaluated by superiors). In essence the book is summed up in his sentence: "The distintive potential contribution of the human being . . . at every level of the organization, stems from his capacity to think, to plan, to exercise judgement, to be creative, to direct and control his own behavior" (114). Is every worker like this? Probably not, but it was refreshing to read someone who thought so. Those who enjoyed this book would also like John Gardner's "On Leadership."

This book changed my life. I assumed I was lazy because I didn't like my work. McGregor helped me to see that I wasn't simply mercenary in my attitude toward work. He posits that each person can discover an almost hidden potential for satisfaction at work that will drive the individual to heights of achievement that are as intrinsically satisfying and remunerative to him/her as they are, of course, to the employer. I used to preserve a status quo and just mouth agreement to get along. I was unhappy because work didn't satisfy latent higher order achievement goals which I think I had subjugated through fear. Regardless of this personal scenario, what I think McGregor provides are key clues and methods for creating an environment in which the fear of offering ideas goes away. There are key pychological/environmental conditions which give rise to people who begin offering ideas and personal investment that they previously could never believe were possible. Read this book if you are hungry to have your people discover their strengths and begin to use them. Read this book if you are wondering what its going to take for you personally to buy into what your company is doing. I would rather be the janitor at NASA who believes his efforts are putting a man on the moon than an executive who has lost vision for what his company is doing.

This book does a great job in describing how humans are motivated and the practical implications for applying that as a manager. Any manager that wants to have a team that is self motivated and involved in their work should read this book. This requires that the manager create a framework in which the employee gets concrete feedback and understands his contribution to the organization. Once that framework is in place the employee will want to excel. Before reading this book I tended to think of employee measurement as a heavy handed, big brother tactic. After reading this book I have a better understanding of why keeping track in business is just like keeping score in golf or basketball. Keeping score if done to let someone track their own performance and not used as a management stick allows the business person at any level in the organization to improve and feel successful. A good complement to this book is "Keeping Score : Using the Right Metrics to Drive World-Class Performance" by Mark Graham Brown