In 1960, organizational psychologist Douglas McGregor introduced a conceptual framework of two contrasting theories about human motivation that grounded my Toyota Production System (TPS) learning.

His Theory X was based on the assumption that workers are fundamentally lazy and can’t be trusted to do good work in the absence of close supervision. As a student at Wayne State University in midtown Detroit, McGregor had ample opportunity to observe the effects of Theory X in U.S. auto factories during the post-World War II mass production boom. His book The Human Side of Enterprise (McGraw Hill, latest edition 2006) called prevailing management assumptions and systems into question, noting Theory X’s self-fulfilling consequences of workforce disengagement and distrust. Frontline employees were motivated primarily by fear and a paycheck to do the minimum required.

Theory Y, the opposing view, assumed that although workers weren’t infallible, they essentially wanted to do the right thing and be respected as thinking, creative beings involved in the design and improvement of their work. The consequences of this assumption were motivation, engagement, and trust. Theory Y workers were primarily motivated by personal development and a shared sense of purpose.

I first learned about theories X and Y from Shigeo Shingo’s book Non-Stock Production (Productivity Press, 2006). Shingo credited McGregor with the conceptual framework, but he used it to contrast Theory Y (in Shingo’s words, “Japanese-style management”) with traditional Western-style Theory X management systems. The difference in approach was, according to Shingo, historical: In Japan, a country with few natural resources, emphasis was placed on the worker as the key to prosperity. On page 282, Shingo wrote, “Theory X and Theory Y characteristics probably coexist in every person, but one or the other may tend to dominate in given labor-management relationship.”

Management’s role is to create a respectful environment to bring out Theory Y in everyone.

In 1988, as a new VP of manufacturing in a U.S manufacturing company, that was my job—to convert a long-standing Theory X factory to a Theory Y Shingo Prize recipient. What I have to say about my personal experience is just a single data point, but I think it’s worth sharing.

My retiring predecessor was the ultimate autocrat and micromanager. He’d grown up in the business managing by fear and had impressed this same behavior on his direct reports. Employees were treated like children, and production employees were treated like bad children.

On the day I officially assumed my new role, Tony, a lieutenant of the departed VP, pulled me aside to share a list.

“These are some folks you need to keep an eye on,” he said.

“Why?” I asked.

“They’re trouble,” he replied. “Complainers. Instigators.”

I listened as Tony elaborated, but I couldn’t believe my ears. A list of troublemakers? When he finished I thanked him, but I let him know that I’d have to form my own opinions.

What I learned

Yes, there was a small group of employees, many of them senior and a few in supervisory positions, who openly challenged the status quo. They worked in different departments—welding, machining, assembly, test—representing most of the factory floor.

Mike, a welder, was borderline belligerent. “You don’t even know what I do!” he said.

I thought about Theory X before responding, “That’s right, I don’t.” Mike just laughed, but I think I surprised him.

Vinnie, a laid-back assembler, wanted me to know that I was wasting my time with him. “I’m just comfortably numb,” he said.

“Pink Floyd,” I responded, “Is anybody in there?”

Patty from shipping confided with a smile on her face, “Nobody in management really gives a rat’s tail about the stuff we put up with.”

“I do,” I said.

These were just a few of the people on Tony’s list. They shared one quality: Unlike most of their fellow team members, they hadn’t been beaten into submission. They were just more resilient. Like daisies surviving in the cracks of a brick walk, they persisted in a Theory X environment. They wanted to be heard.

And I wanted them to know I was trying to listen. I did my best to channel Theory Y, and these were my early adopters. My job, as Shingo counseled, was to “turn dissatisfaction into constructive dissatisfaction.” Complaints became ideas, ingenuity replaced frustration, and creativity changed our culture. Other employees would eventually follow when they sensed it was safe, but this never would have occurred without the good trouble from the folks on Tony’s list.

When the status quo is Theory X, the troublemakers can lead the way to Theory Y.

Do you agree or disagree? Please comment below.

Published in Bruce Hamilton’s blog, Old Lean Dude.