Theory X and Theory Y are theories of human motivation created and developed by Douglas McGregor at the
MIT Sloan School of Management in the
1960’s.
Theory X and Theory Y have to do with the perceptions managers hold on their employees, not the way they generally behave. It is attitude not attributes.
Theory X
• Manager’s/ Management’s assumptions –
• Management assumes employees is inherently lazy, will avoid work and they inherently dislike work.
• Due to this management believes that workers need to be closely supervised.
• A hierarchical structure is needed with narrow span of control at each and every level.
• Managers rely heavily on threat and coercion to gain their employees' compliance.
• Managers feel the sole purpose of the employee's interest in the job is money. They will blame the person first in most situations, without questioning whether it may be the system, policy, or lack of training that deserves the blame
3According to this theory, employees will show little ambition without an enticing incentive program and will avoid responsibility whenever they can. Beliefs of this theory lead to mistrust, highly restrictive supervision, and a punitive atmosphere.
Theory Y
• Manager’s/ Management Assumptions –
• Management assumes employees may be ambitious and self-motivated and exercise self-control.
• They possess the ability for creative problem solving, but their talents are underused in most organizations. Given the proper conditions, Theory Y managers believe that employees will learn to seek out and accept responsibility and to exercise self-control and self-direction in accomplishing objectives.
• Manager’s believe that the satisfaction of doing a good job is a strong motivation. • Theory Y as a positive set of beliefs about workers.
• Employee development is considered as a crucial aspect of any organization. This would include managers communicating openly with subordinates, minimizing the difference between