Page 163 - Performance Leadership

152 • Part III Principles from the Values and Social Dimensions

and avoid work. They need to be directed and controlled by manage-
ment. Decisions are made and communicated. Performance indicators
are a control mechanism, they are put in place to check if all the work
has been done. Feedback is given in a negative way to those who do
not work hard or good enough. Rewards consist of money. Addition-
ally, Theory X environments also think in terms of punishments.
Theory Y states the opposite. People like to work; it gives them a
sense of purpose and accomplishment. People are creative and look for
better ways to do their job, maximizing the results of their resources
and skills. They seek responsibility. Management’s role is to coach
employees, and the decision-making processes are participative. Per-
formance indicators are used as a feedback mechanism to motivate peo-
ple to improve. Rewards do not have to be monetary. They can also
consist of public recognition or incentives aimed at building skills, such
as training, leading to a higher job satisfaction.
A Theory X approach in a Theory Y environment will lead to many
people quitting their jobs, such directive management is simply unac-
ceptable. The people who stay will become inert, waiting for detailed
instructions. In such organizations there is usually a very high level of
passive-aggressive behavior, people like to see activities and processes
go wrong. Conversely, a Theory Y management style in a Theory X cul-
ture leads to people taking advantage of the situation and avoiding work
and responsibility. See Table 9.6.

Table 9.6

Theory X versus Theory Y
Theory Y
Theory X (Control) (Feedback)
Management process Directive, detailed Participative, coaching,
high-level
Key performance indicators Measuring inputs, such Measuring outputs, such as
as time and effort achievement and results
Feedback To management, for To workers, for
control purposes motivational purposes
Rewards Bonuses, punishments Recognition, training
(negative rewards)
Dysfunctional behavior Taking advantage Passive-aggressive behavior