Douglas McGregor examined theories on behaviour of individuals and formulated two models which he calls Theory X and Theory Y.
Theory X assumes that the average human being has an inherent dislike for work and will avoid it if he can.
As A result of their dislike for work, most people must be controlled and threatened before they will work hard enough.
The average human being prefers to be directed, dislikes responsibility, is unambiguous and desires security above everything.
These assumptions lie behind most organizational principles today, and give rise to both tough management with punishments and tight controls, and soft management which aims at harmony at work. These are however wrong because man needs more than financial rewards at work, he also needs some deeper higher order motivation that is the opportunity to fulfill himself. Theory X managers do not give their staff this opportunity so that the employees behave in the expected manner.
In modern day organizations, there is no need for theory x elements as propounded by McGregor because of the following:
Modern organizations seek to employ people with the right skills and know how to occupy various positions in the organization. During the recruitment and selection process, management ensures that the right caliber of people are employed.
Once this process is completed, they make sure that they are trained to understand the various roles they are employed to play in the organization.
After this, performance is managed. Management puts in a system whereby, the performance of each employee is assessed and measures put in place by both management and the employees to improve performance.
Also, incentives are put in place to ensure that the employee is satisfied in order to give his/her maximum best.
Communication in the modern organization is no longer
References: “The Human side of Enterprise” by Douglas McGregor 1960