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and results and rightly so as this is how we determine how well we re doing, but in terms of making changes and improving things we need to start thinking in terms of potential; what we could do just as much as what we have done Unfortunately the world of work is not organised this way It is hard to make a case for retaining an employee who is under performing but who we sense could go on to great things Employers understandably hedge their bets and seek to buy proven potential directly from the labour market Top jobs are to be lled only by those on the graduate development programme External candidates must have the right MBA and so on But just as with the Stock Market, past performance is no guarantee of future results What people have done is not necessarily linked to what they could do Nevertheless, we can t employ people based on a leap of faith or retain poor performers on the basis of bene t of the doubt, but we do need to manage them in such a way as to give them every chance to let their potential come out Potential is by de nition latent ie hidden or underdeveloped and so we cannot ask prospective employees to bring a sort of certi cate of potential with them to the recruitment or promotion interview We have, instead, to take a view on how much potential a person may have and this view is likely to be informed by our own beliefs and values and by our own experience at work
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THEORY X AND THEORY Y Perhaps the most popular and accessible piece of management research on this point was presented by Douglas McGregor [17] with his Theory X and Theory Y suppositions about management behaviour According to McGregor, Theory X Managers take the view that people:
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essentially dislike work and will avoid it all together if possible are motivated only by money or fear need discipline and constant supervision can t be trusted avoid responsibility lack loyalty and commitment lack creativity except in nding ways to avoid work!
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Let s just stop for a moment and consider how a manager would treat people if she held this view I think it s likely she would: put tight controls in place to ensure people are working when they should be exercise rm control over all activities and have rigorous reporting procedures in place De ne work to a ne level of detail and prescribe precisely how tasks should be carried out remind people often that the organisation pays their wages and how easily they can be replaced
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Let s now think about how people are most likely to react if this is how they are treated I would assume that they would: do what they need to do to get the job done, but no more resist change refuse to take on extra responsibility without more pay resist at all costs requests to work more exibly
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I can t imagine that creativity and innovation would ourish in such an atmosphere Theory Y managers, on the other hand, take the view that people:
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have psychological as well as economic reasons for working are motivated by achievement, recognition, praise, etc work to their own standards often higher than the boss s are totally trustworthy seek responsibility are keen to be loyal and committed are a great source of ideas
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How would a manager treat her staff if she believed Theory Y to be true Perhaps she would: offer praise and encouragement, thanking people publicly for their efforts look for contributions from team members in terms of what needs doing and how it should be done set objectives for the team and then leave them alone to carry them out
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Treated this way, I think it s reasonable to expect that her team would: justify the faith she has shown by getting results put in the extra effort when required take on extra responsibility be loyal in dif cult times
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Neither of these views is right or wrong and each is clearly quite extreme Most managers are probably a blend of parts of each and their views will probably change depending on how things are going when you ask them The question therefore becomes if neither view is right, wrong or permanent, which view is more useful to us as managers who coach Theory Y would seem to offer the greatest scope for achieving improved results because of a concept known as the self-ful lling
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