“Knowledge accumulated during recent decades challenges and contradicts assumptions which are still axiomatic in conventional organizational theory. Unfortunately, those classical principles of organization — derived from inappropriate models, unrelated to the political, social, economic, and technological milieu, and based on erroneous assumptions about behavior — continue to influence our thinking about the management of the human resources of industry. Management's attempts to solve the problems arising from the inadequacy of these assumptions have often involved the search for new formulas, new techniques, new procedures. These generally yield disappointing results because they are adjustments to symptoms rather than causes. The real need is for new theory, changed assumptions, more understanding of the nature of human behavior in organizational settings.”

—  Douglas McGregor

Source: The Human Side of Enterprise (1960), p. 17 (2006: 24)

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Douglas McGregor 22
American professor 1906–1964

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“Nearly fifty years ago… Douglas McGregor launched a debate over how to manage The Human Side of the Enterprise. By comparing what he called Theory X and Theory Y perspectives, he challenged the management profession to reexamine its assumptions about the motivations employees bring to their jobs. The question was: Could employees be trusted and empowered to do good work, or did they have to be closely directed, monitored, and controlled to act in the interests of the firm? While McGregor’s Theory Y sparked important innovations in human resource practices, it did not challenge fundamental assumptions underpinning the 20th Century organizational model. If, as is widely recognized, human capital and knowledge are the most important sources of value for the 21st Century organization, then fundamental assumptions about the relationship between work and organizations will also need to be challenged.”

Thomas A. Kochan (1947) American academic

Source: "Beyond McGregor’s Theory Y", 2002, p. 2: introduction

“Classical organization theory suffers from "ethnocentrism": It ignores the significance of the political, social, and economic milieu in shaping organizations and influencing managerial practice.”

Douglas McGregor (1906–1964) American professor

Source: The Human Side of Enterprise (1960), p. 16 (p. 23 in 2006 edition)

“We live today in a world which only faintly resembles that of a half century ago. The standard of living, the level of education, and the political complexion of the United States today profoundly affect both the possibilities and limitations of organizational behavior. In addition, technological changes are bringing about changes in all types of organization. In the military, for example, it is becoming increasingly difficult to manage a weapons team in the field as a typical infantry unit was managed a couple of decades ago. Such a team requires a high degree of autonomy. Instead of following explicit orders from superiors, it must be able to adjust its behavior to fit local circumstances within the context of relatively broad objectives. (It is interesting to note the attempts that are made — by "programming" for example — to retain central control over the operations of such units. Established theories of control are not abandoned easily, even in the face of clear evidence of their inappropriateness.) Underlying the principles of classical organization theory are a number of assumptions about human behavior which are at best only partially true.”

Douglas McGregor (1906–1964) American professor

Source: The Human Side of Enterprise (1960), p. 16 (2006; 23)

Lynda Gratton photo

“Two of the most widely adopted models of human resource management are the hard and soft versions. These are based on opposing views of human nature and managerial control strategies. The hard model is based on notions of tight strategic control, and an economic model of man according to Theory X, while the soft model is based on control through commitment and Theory Y. We argue that because these assumptions are so divergent, they cannot both properly be incorporated within a single model of human resource management.”

Lynda Gratton (1953) Business theorist

Catherine Truss, Lynda Gratton, Veronica Hope-Hailey, Patrick McGovern and Philip Stiles (1997). "Soft and hard models of human resource management: a reappraisal." Journal of Management Studies, 34(1), 53-73.

“The models of management which individuals and organizations use come from a variety of sources. Sometimes the model comes from a theory. The theory may emerge from someone's thoughts about the desired characteristics of a manager, or about the characteristics of competent managers. Sometimes the model comes from a panel. A group of people, possibly in the job or at levels above the job within the organization, generates a model through discussion of what is needed to perform a management job competently.”

Richard Boyatzis (1946) American business theorist

Source: Competent manager (1982), p. 7.

“If there is a single assumption which pervades conventional organizational theory, it is that authority is the central, indispensable means of managerial control.”

Douglas McGregor (1906–1964) American professor

Source: The Human Side of Enterprise (1960), p. 18 (2006; 24)

“Human behavior is predictable, but, as in physical science, accurate prediction hinges on the correctness of underlying theoretical assumptions. There is, in fact, no prediction without theory; all managerial decisions and actions rest on assumptions about behavior. If we adopt the posture of the ostrich with respect to our assumptions under the mistaken idea that we are thus “being ‘practical,” or that “management is an art,” our progress with respect to the human side of enterprise will indeed be slow. Only as we examine and test our theoretical assumptions can we hope to make them more adequate, to remove inconsistencies, and thus to improve our ability to predict.”

Douglas McGregor (1906–1964) American professor

Source: The Human Side of Enterprise (1960), p. 11 (2006; 13)

“Formal theories of organization have been taught in management courses for many years, and there is an extensive literature on the subject. The textbook principles of organization — hierarchical structure, authority, unity of command, task specialization, division of staff and line, span of control, equality of responsibility and authority, etc. — comprise a logically persuasive set of assumptions which have had a profound influence upon managerial behavior.”

Douglas McGregor (1906–1964) American professor

Source: The Human Side of Enterprise (1960), p. 15 (p. 21 in 2006 edition)

“The key question for top management is what are your assumptions (implicit as well as explicit) about the most effective way to manage people?”

Douglas McGregor (1906–1964) American professor

Source: The Human Side of Enterprise (1960), p. 1; as cited in: Abraham Harold Maslow, Deborah Collins Stephens, Gary Heil. Maslow on management, John Wiley, 1998, p. 96

“Barnard comes close to joining Roethlisberger and Dickson in their assumption that management behavior is mainly rational and workers' behavior nonrational.”

Charles Perrow (1925–2019) American sociologist

Source: 1970s, Complex organizations, 1972, p. 88

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