Douglas McGregor Quotes

Behind every managerial decision or action are assumptions about human nature and human behavior.

The approach that dominates organizational theory, teaching, and practice for most of the twentieth century looked at organizations from the top-down, starting with a view of the CEO as the "leader" who shapes the organization's strategy, structure, culture, and performance potential. The nature of work and the role of the workforce enter the analysis much later, after considerations of technology and organization design have been considered. However, if the key source of value in the twenty-first-century organization is to be derived from the workforce itself, an inversion of the dominant approach will be needed. The new perspective will start not at the top of the organization, but at but at the front lines, with people and the work itself — which is where value is created. Such an inversion will lead to a transformation in the management and organization of work workers, and knowledge. This transformation was signalled by McGregor, but we must go further.

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

Every managerial act rests on assumptions, generalizations, and hypotheses — that is to say, on theory. Our assumptions are frequently implicit, sometimes quite unconscious, often conflicting; nevertheless, they determine our predictions that if we do a, b will occur. Theory and practice are inseparable.

Man will exercise self-direction and self-control in the service of objectives to which he is committed.

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

The ingenuity of the average worker is sufficient to outwit any system of controls devised by management.

Delegation means that he will concern himself with the results of their activities and not with the details of their day-to-day performance. This requires a degree of confidence in them which enables him to accept certain risks. Unless he takes these risks there will be no delegation.

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.

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

The average human being has an inherent dislike of work and will avoid it if he can.

The capacity to exercise a relatively high degree of imagination, ingenuity and creativity in the solution of organizational problems is widely, not narrowly, distributed in the population.

It is one of the favorite pastimes of headquarters groups to decide from within their professional ivory tower what help the field organization needs and to design and develop programs for meeting these "needs." Then it becomes necessary to get field management to accept the help provided, and a different role is taken by the staff: that of persuading middle and lower management to utilize the programs.

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.

The effectiveness of authority as a means of control depends first of all upon the ability to enforce it through the use of punishment. In the two organizations which have been the models for classical organization theory, the situation with respect to enforcement is clear. In the military, authority is enforceable through the court-martial, with the death penalty as the extreme form of punishment. In the Church, excommunication represents the psychological equivalent of the death penalty.