\"What are your assumptions (implicit as well as explicit) about the most effective way to manage people?\" So began Douglas McGregor in this 1960 management classic. It was a seemingly simple question he asked, yet it led to a fundamental revolution in management. Today, with the rise of the global economy, the information revolution, and the growth of knowledge-driven work, McGregor's simple but provocative question continues to resonate-perhaps more powerfully than ever before. Heralded as one of the most important pieces of management literature ever written, a touchstone for scholars and a handbook for practitioners, The Human Side of Enterprise continues to receive the highest accolades nearly half a century after its initial publication. Influencing such major management gurus such as Peter Drucker and Warren Bennis, McGregor's revolutionary Theory Y-which contends that individuals are self-motivated and self-directed-and Theory X-in which employees must be commanded and controlled-has been widely taught in business schools, industrial relations schools, psychology departments, and professional development seminars for over four decades. In this special annotated edition of the worldwide management classic, Joel Cutcher-Gershenfeld, Senior Research Scientist in MIT's Sloan School of Management and Engineering Systems Division, shows us how today's leaders have successfully incorporated McGregor's methods into modern management styles and practices. The added quotes and commentary bring the content right into today's debates and business models. Now more than ever, the timeless wisdom of Douglas McGregor can light the path towards a management style that nurtures leadership capability, creates effective teams, ensures internal alignment, achieves high performance, and cultivates an authentic, value-driven workplace--lessons we all need to learn as we make our way in this brave new world of the 21st century.

The Human Side of Enterprise.

New Patterns of Management.

Participation in decision making (PDM) takes several distinct forms. A review of empirical studies demonstrates that effects of participation on satisfaction and performance vary according to form. The findings cast doubt on the conclusions of earlier reviews based on a unidimensional view of PDM and raise several issues for the study and practice of PDM.

Employee Participation: Diverse Forms and Different Outcomes

A model is developed that explicates one process through which employee ownership operates, leading to a set of social-psychological and behavioral effects. Where the formal ownership system is operationalized such that it leads to psychological ownership, a bonding or integration of the employee-owner with the organization occurs. It is through these processes that employee ownership exercises an influence upon group and individual outcomes. A set of antecedent and moderating variables to the operation of the formal ownership system is identified.

Employee ownership: a conceptual model of process and effects

The primary aim of this study was to analyze and interpret some aspects of the process of organizational identification in a corporate field setting. Specifically, the study focused on how an individual's identification (or identifying) with an employing organization influences on‐the‐job decision making. Past research efforts have been limited by their treatment of organizational identification as a product or state, rather than as a process. The wider perspective on identification is well represented by Herbert A. Simon and Kenneth Burke, whose writings were integrated to provide a theoretical framework for this study. While this study neither examined the phenomenon of identification over time nor placed it in a clearly‐defined causal chain, it explicitly recognized identification as a continuing development involving many changes. The study employed two methodologies for the examination of identification in a corporate field setting: moderately‐scheduled interviews that produced largely qualitative da...

On the various and changing meanings of organizational membership: A field study of organizational identification

Noting a paucity of research on the subject, this article attempts to explore the effects of employee ownership, concentrating on possible relationships between ownership and such variables as organizational identification, employee job attitudes, and organizational performance, and on identifying variables which may moderate these relationships. After development of a conceptual framework, empirical data obtained from study of a trucking company recently purchased by most of its employees are presented and discussed. These data support the plausibility of many of the hypothesized relationships, but do not permit strong causal inferences. Although the author tentatively concludes that employee ownership appears to have improved employee attitudes and organizational performance in this case, he stresses that much further research, in a variety of settings, specifically designed to permit causal testing of the propositions suggested here, is badly needed before firm conclusions can be drawn.

The Effects of Employee Ownership on Organizational Identification, Employee Job Attitudes, and Organizational Performance: A Tentative Framework and Empirical Findings

This paper assesses the apparent effects on job attitudes and organizational performance of recent conversions to employee ownership at three firms Favorable effects were most evident at the firm 

Job Attitudes and Organizational Performance Under Employee Ownership

Studies on the effects of employee share ownership or employee participation in decisions (or control) have tended to focus on one or the other of the two variables or have assumed that they covary. Using data from an employee-owned company, this study attempts to empirically separate and assess the relative effects of each of these on a set of dependent variables (job attitudes) which they are both thought to affect. Results indicated that employee share ownership and participation each had significant and independent effects on some job attitudes. However, little evidence of interaction effects between the two variables, which had been predicted, was found. Implications and limitations of the findings are discussed, and possible directions for future research are suggested.

The Relative Effects of Share Ownership vs. Control on Job Attitudes in an Employee-Owned Company

Worker Ownership and Job Attitudes: A Field Study

Despite deep theoretical roots, a prominent place in the practitioner literature, and increasing use by organizations, non-cash employee recognition plans have thus far received relatively little empirical study by academic researchers. Drawing on survey data from 349 Canadian and Australian firms, this study examines the incidence of individually based and group-based non-cash recognition (NCR) programmes, ascertains whether there are relationships between use of non-cash and cash-based reward practices, and identifies possible predictors of NCR programmes. Results indicate that non-cash plans are indeed common in both countries, but do not appear to substitute for cash-based performance plans, contrary to enthusiasts' suggestions. The most important predictor of non-cash programmes is unionization, which is negatively related to both individually based and group-based NCR programs in Canada, and to group-based programmes in Australia.

Richard J. Long

Papers

The Effects of Employee Ownership on Organizational Identification, Employee Job Attitudes, and Organizational Performance: A Tentative Framework and Empirical Findings

Job Attitudes and Organizational Performance Under Employee Ownership

The Relative Effects of Share Ownership vs. Control on Job Attitudes in an Employee-Owned Company

Worker Ownership and Job Attitudes: A Field Study

From pay to praise? Non-cash employee recognition in Canadian and Australian firms