Theory X and Theory Y

Douglas McGregor developed a philosophical view of humankind with his Theory X and Theory Y (McGregor, 1957), which are two opposing perceptions about how people view human behavior at work and organizational life. McGregor felt that companies followed either one or the other approach:

Theory X

o People have an inherent dislike for work and will avoid it whenever possible.
o People must be coerced, controlled, directed, or threatened with punishment in order to get them to achieve the organizational objectives.
o People prefer to be directed, do not want responsibility, and have little or no ambition.
o People seek security above all else.

Note that with Theory X assumptions, management's role is to coerce and control employees.

Theory Y

o Work is as natural as play and rest.
o People will exercise self-direction if they are committed to the objectives (they are NOT lazy).
o Commitment to objectives is a function of the rewards associated with their achievement.
o People learn to accept and seek responsibility.
o Creativity, ingenuity, and imagination are widely distributed among the population. People are capable of using these abilities to solve an organizational problem.
o People have potential.

Note that with Theory Y assumptions, management's role is to develop the potential in employees and help them to release that potential towards common goals.

Theory X is the view that traditional management has taken towards the workforce. Many organizations are now taking the enlightened view of theory Y. A boss can be viewed as taking the theory X approach, while a leader takes the theory Y approach.