Theory X leadership style assumes that people dislike work and must be coerced, controlled, and directed toward organisational goals. How might the company and its people perform if the CEO adopts Theory Y leadership style instead?
McGregor's Theory X & Theory Y Leadership Styles
I met an old friend not too long ago to catch up. It was nice to see him again as we’ve not met for almost two years. He shared that he has joined a new company and he found it difficult adjusting to the culture there (he was being diplomatic). When I curiously asked who had set the culture in his company, he soon confided that he didn’t enjoy working with the CEO.
According to him, the CEO is an ‘aggressive’ person. He shared that the CEO is forceful in his approach (my way or the highway kind) and he instils fear in his people including those at C-suite level. He micromanages his people and doesn’t empower them. Every decision, regardless how big or small, must be made by him.
“He’s a real pain to work with” concluded my friend.
Immediately McGregor’s Theory X and Theory Y leadership styles came to mind. The leadership styles are based on certain assumptions about human motivation.
Theory X
Theory X assumes that people dislike work and must be coerced, controlled, and directed toward organisational goals.Theory Y
Theory Y emphasises the average person’s intrinsic interest in his work, his desire to be self-directing and to seek responsibility, and his capacity to be creative in solving business problems.Clearly the CEO practices Theory X leadership style. This got me thinking- Is Theory X leadership style still applicable today?
According to my friend, the company he works for has been around for many years and they are profitable. The current CEO has been at the helm for a few years now and nothing seems to suggest that his tenure will be over anytime soon. Overall staff morale is rather low and staff turnover is high. People often get reprimanded by the CEO and as a result most of them ended up becoming ‘yes-men’.
Analysing my friend’s description of the CEO, it is reasonable to assume the CEO’s leadership style is premised on his lack of trust in his people. He probably (for only reasons known to him) doesn’t think highly of his people and doubt their capabilities. Or maybe he just finds comfort in having a firm grip on things, hence the control freak approach. We need to be reminded that people leave managers and leaders, not companies [https://www.kaceconsultants.com/post/people-leave-managers-or-leaders-not-companies].
I believe that no man’s an island. Success is a team sport and although a single person may achieve success, success becomes easier to achieve with the support and collective effort of a dedicated team.
It’s good that the company is profitable despite the way the CEO runs it. Instead of being a tyrant, how might becoming an emotionally intelligent leader help the CEO perform better and achieve better profitability? How might the company and its people perform if the CEO adopts Theory Y leadership style instead?
Emotional intelligence
Emotional intelligence, which is considered by many as a ‘must-have’ skill to succeed today and in the future, will help the CEO run the company and lead the people differently. An emotionally intelligent leader empowers the people, which results in them taking more interest in their work and proactively taking on more responsibilities in the company. As the leader displays more empathy to the people at work, relationships are strengthened and they become more cohesive and aligned with the leader’s vision and mission.
Here are some tips to develop your level of emotional intelligence [https://www.kaceconsultants.com/post/how-do-you-develop-and-enhance-your-level-of-emotional-intelligence].
Theory X leadership style may still be applicable in certain business environments today but Theory Y leadership style offers greater advantages. Emotional intelligence functions as a catalyst for the shift from Theory X to Theory Y leadership style and as emotional intelligence becomes more prominent in leadership, Theory X leadership style may eventually be a thing of the past.
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