Dr. Vidya Hattangadi al. International Journal of Recent Research Aspects ISSN: 2349-7688, Vol. 2,
Issue 4, December2015, pp.20-21
© 2014 IJRAA All Rights Reserved page- 20-
Theory X & Theory Y
Dr. Vidya Hattangadi
Professor & Head of EMBA, Gurur Nanak Institute of Management Studies, Mumbai, India
Abstract – Theory X and Theory Y are theories of human motivation created and developed by social psychologist
Douglas McGregor at the MIT Sloan School of Management in the 1960s that have been used in human resource
management, organization behavior, organizational communication and organizational development. They describe
two contrasting thinking of workforce motivation.
Keywords— Theory X Theory Y, Douglas McGregor, Theory X, Authoritarian Style of managing, Theory Y,
Participative style of managing, Maslow’s Hierarchy of Needs, Robert Towsend, ‘Up the
organization’
I. INTRODUCTION
Theory X and Theory Y represent the perceptions managers
hold about their employees. It is not about their general
behavior outside the work place, it pertains on their job,
while working in the organization.
Figure 1
It is contrasting because many people get great satisfaction
from their work and take great pride in it while others may
view it as a burden, and simply work to survive.
This question of motivation has been studied by management
theorists and social psychologists for decades, in attempts to
identify successful approaches to management. Every
manager‟s management style is strongly influenced by
his/her beliefs and assumptions. Every manager accordingly
treats and motivates members of his team. If the manager
feels that his team members dislike work, he will be inclined
towards an authoritarian style of management. On the other
hand, if a manager assumes that employees take pride in
doing a good job, he will tend to adopt a more participative
style.
II. THEORY X
The ‘Theory X’ management assumes employees are
inherently lazy and will avoid work if they can and that they
inherently dislike work. As a result of this, management
believes that workers need to be closely supervised and allinclusive systems of controls be developed. It requires a
hierarchical structure with narrow span of control at each and
every level. According to this theory, employees will show
little ambition without a tempting incentive program and will
avoid responsibility whenever they can.
Figure 2
Theory X managers rely heavily on threat and intimidation to
gain their employees’ fulfillment. Theory X managers present
an authoritarian style in which emphasis is laid on
productivity or output. These managers expect a fair day’s
work from their subordinates. It also reflects that such
managers behave as watchdogs and they constantly suspect
that people want to avoid work. Theory X is the style that
predominated in business after the mechanistic system of
scientific management had swept everything before it in the
first few decades of the 20th century. This theory is based on
mistrust in employees and it styles around highly restrictive
supervision, and a disciplinary atmosphere. It gives rise to
autocratic leadership. Such leaders provide clear expectations
for what needs to be done, when it should be done, and how
it should be done. There is also a clear division between the
leader and the followers. These managers tend to micromanage and are extremely task oriented.
In a small business environment, the owners often implement
Theory X form of leadership when the operation is relatively
small and he has a limited number of employees. While an
authoritarian style is considered more traditional, and in some
instances, outdated form of leadership, it still offers a variety
of benefits. An authoritarian style of leadership can be
effective in work environments where decisions need to be
Dr. Vidya Hattangadi al. International Journal of Recent Research Aspects ISSN: 2349-7688, Vol. 2,
Issue 4, December2015, pp.20-21
© 2014 IJRAA All Rights Reserved page- 21-
made quickly. The sole responsibility rests with the leader,
and he/she makes the decision without the need to consult
others. If a business faces constant change, the autocratic
leader is able to respond in a way that prevents the business
from falling behind the competition and keeps up with
customer demand. In a state of emergency when a riot
breaks, or major accidents take place or in a war the army
and police chiefs are required to take on the spot decisions
and during such times autocratic decision works.
Figure 3
III. THEORY Y
Theory Y is a participative style of management which
assumes that people will exercise self-direction and selfcontrol in achieving the organizational goals and objectives.
It assumes that employees are committed to organization‟s
objectives. It is management’s main task in such a system to
mould the employees and maximize their commitment.
Theory Y leaders are participative leaders – also known as
democratic leaders; it is believed to be the most effective
leadership style in today‟s business world. Democratic
leaders offer guidance to group members, they give
reasonable autonomy to their subordinates and allow them to
participate in the group. They appreciate inputs and ideas
from their group members. Theory Y leaders encourage
group members to participate, but retain the final say over the
decision-making process. Group members feel engaged in the
process and are more motivated and creative. This is a more
dignified and enlightened management style.
Please understand that theory Y though you feel is liberated,
is difficult to practice when goals and objectives are blurred
in an organization. It challenges the groups and managers to
innovate, to discover new ways of organizing and directing
human effort. A perfect organization is like an illusion.
Douglas McGregor urged companies to adopt Theory Y. He
believed that motivated individuals give far more
productivity. It brings the highest levels of achievements.
Theory X merely satisfies worker‟s basic physical needs and
not their social, self esteem needs and self actualization
needs. “Man is a wanting animal,” wrote McGregor, “as soon
as one of his needs is satisfied another appears in its place.”
Theory X and Theory Y relates to Maslow’s „hierarchy of
needs‟ in how human behavior and motivation are main
priorities in the workplace in order to maximize output. In
Theory Y, the organization is trying to create the most
symbiotic relationship between the managers and workers,
which relates to Maslow’s needs for self-actualization and
Esteem. For self-actualization, the manager promotes the
optimum workplace culture through ethics, morality,
creativity, spontaneity, problem solving, without prejudice
and by accepting facts. We must realize that prejudice exists
in others, even as we try to minimize it in ourselves. A
Theory Y manager tries to promote each team member’s selfesteem, confidence, achievement, happiness, respect of
others, and respect by others.
Do you know Maslow was indeed greatly influenced by
McGregor? So much so that he tried to introduce Theory Y
into a Californian electronics business, but found that the
idea in its intense form did not work well. Maslow thus
concluded that however independent and mature people are;
they need some form of rules and regulation for adherence
around them and some direction from superiors. Maslow also
criticised Theory Y for its callousness – as it hardly works
well on the weak and incapable employees who are not
competent enough of a high level of self-motivation.
Whereas, Robert Towsend an American business executive
and author who is noted for transforming Avis into a rental
car giant wrote in his comic classic “Up the Organization”,
powerfully in support of Theory Y that people don’t hate
work. It’s as natural as rest or play. They don’t have to be
forced or threatened. If they commit themselves to mutual
objectives, they’ll drive themselves more effectively than you
can drive them. But they’ll commit themselves only to the
extent they can see ways of satisfying their ego and
development needs.
Figure 4
IV. CONCLUSIONS
Many studies conducted on Theory X Theory Y indicate that
there is no such one best organizational approach; rather, the
best approach depends on the nature of the work and the
organizational structure. Enterprises with highly predictable
tasks perform better with by the highly formal procedures
and management hierarchies of the classical approach. On the
other hand, organizations with highly uncertain tasks that
require more extensive problem solving, are less formalized
and they emphasize on employees‟ self-control and
participation in decision making which works effectively. In
quintessence, according to these newer studies, managers
must be flexible in delegating and controlling employees.
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Review the provided article on theory X and Y write a one-page reflection comparing and contrasting these two theories of human motivation.
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