THEORY X AND THEORY

- Douglas McGregor's
 DEFINITION

Theory X and Theory Y are part of

motivational theories. Both the theories
which are very different from each other,
are used by managers to motivate their
employees. Theory X gives importance to
supervision, while theory Y strains on
rewards and recognition.
MCGREGORS THEORY X AND Y

Douglas Mcgregor wrote the book “The human side

of enterprise” in 1960

He examined individuals behaviour at work.

From this he formulated two models of management based on hierarchy into

lower-order needs (Theory X) and higher-order needs (Theory Y).

These theories are based on human behaviour in management.

It concludes dual aspects of human being.

He suggested that management could use either

set of needs to motivate
UNDERSTANDING THE THEORIES

Our management style is strongly influenced by our beliefs and assumptions about what
motivates members of your team: If you believe that team members dislike work, you will
have an
authoritarian style of management; On the other hand, if you assume that employees take
pride in doing a good job, you will tend to adopt a more participation style.
THEORY X

Theory X assumes that employees are

naturally unmotivated and dislike working, and
this encourages an authoritarian style of
management. According to this view,
management must actively intervene to get
things done.

It summaries that workers need to be

constantly watched and instructed what to do.
CHARACTERSTICS

intolerant
distant and detached
aloof and arrogant
short temper
issues instructions,
directions, edicts

issues threats to make people follow instructions

demands, never asks
does not participate
does not team-build

unconcerned about staff

welfare, or morale

proud, sometimes to the point of self-destruction

one-way communicator
poor listener
THEORY Y

Theory Y shows a participation style of

management that is decentralized. It assumes
that employees are happy to work,
selfmotivated, creative and enjoy working with
greater responsibility.

It emphasizes that staff are self-disciplined

and would like to do the job themselves
CHARACERSTICS

Take responsibility and are motivated to fulfill

the
goals they are given.

Consider work as a natural part of life and

solve work problems imaginatively. Assumes
that people seek fulfilment through work and
are willing to work hard.

In Y-Type organizations, people at lower

levels of the organization are involved in
decision making.
OTHER CHARACTERSTICS

self-motivated

responsible

always participate

gives rewards and feedback

promotion

power to implement decisions

active

good listener

happy

concerned about staff welfare

COMPARISON
APPLICATION

Theory X management style is widely

accepted as inferior to others, it has its place in
large scale production operation and unskilled
production-line work.

Theory Y-style management is suited to

knowledge work and professional services;
even highly structure knowledge work, such as
call center operations, can benefits from.
Theory Y principles
to encourage knowledge sharing and
continuous
improvement.
APPLICATION OF HIERARCHY OF NEEDS TO
MANAGEMENT AND WORKPLACE

Theory X

(ineffective management)

Once a need is met, it no longer motivates behavior: therefore only unfulfilled needs are
motivational.

Theory Y

(effective management)

Motivational emphasis shifts to social, ego and self- actualization since most employees have
physical and safety needs met.
CONCLUSION

Though these theories are very basic in nature,

they provide a platform for future generations
of management theorists and practitioners to
understand the changing dynamics of human
behavior. McGregor’s X-Y Theories remain
guiding principles to the management to evolve
processes which help in organizational
development.