The importance of effective management
A Chartered Management Institute case study

Page 3: People-focused management

McGregor - Theory X and Theory Y

The concept of Theory X and Theory Y managers was first developed by Douglas McGregor. He was able to show that Theory Y managers are better able to create employee engagement.

In a recent survey, CMI asked employees what type of manager they responded to best. The top two results showed employees preferred a Theory Y approach.

Research carried out by CMI also showed that over half of the managers surveyed felt that there is a short supply of management skills in two key areas:

  • Inspiring people and leading them through change
  • Innovation in business growth and development.

Practical support from CMI

CMI provides practical support to managers to help them develop the skills to inspire their teams and generate creative thinking.

For example, Justin Skinner has a PhD in Mathematics and Statistics. On taking up a high level management post at London-based insurance firm QBE, he developed his management skills by gaining a Diploma in Management Studies. He says, 'I wanted to be a good manager and was aware that my competence as a manager and my management style would have a big impact on my team and my colleagues.'

Through studying management techniques and principles, he recognised the importance of his relationship with his employees.  Justin has become a more competent manager by trusting his team more and being open to their ideas.  His company benefited as these changes made the team feel valued and raised levels of engagement.

Justin continued his development by becoming a CMI member and in 2007 became a Chartered Manager. 'I think that I have become a better manager; my team is now outperforming similar teams in other organisations.'

Chartered Management Institute | The importance of effective management



You can download resources for this case study below

Case study pages

This page and contents, ©2018 Business Case Studies, is intended to be viewed online and may not be printed. Please view this page at