Douglas McGregor’s Theory X & Theory Y

Douglas McGregor proposed two distinct views about human beings – one view is basically negative-
labelled as Theory X, another view is basically positive labelled as Theory Y.

After observing the ways in which the managers dealt with their employees, Douglas McGregor
concluded that managers are having preconceived notions about their employees based on a certain
group of assumptions and they tend to mould their behaviour accordingly.

The group of assumptions under Theory X are given below:

1. Employees inherently dislike work, and whenever possible, they will attempt to avoid
responsibilities.
2. Since they dislike work, they must be coerced, controlled, or threatened with punishment to
achieve goals.
3. Employees will often try to avoid responsibilities, and even seek formal direction.
4. Most workers place security above all other factors associated with job and will display little
ambition.

In contrast, four positive set of assumptions under Theory Y are given below:

1. Employees can view job as being as natural as rest or play.

2. Employees will exercise self-direction and self-control, if they are committed to achieve
organisational objectives.
3. The average person can learn to accept, even seek, responsibility.
4. The ability to make innovative decisions is dispersed throughout the population and is not
necessarily the sole province of those in management positions.

What are the motivational implications if you accept McGregor’s analysis?

The answer can be best expressed from Maslow’s framework. Theory X assumes lower-order needs
dominate individuals. Theory Y assumes higher-order needs dominate individuals. McGregor himself
held to the belief that Theory Y assumptions were more valid than Theory X. Therefore he postulated
such ideas as participative decision making, Challenging job roles and responsibilities, and cohesive
relations among group members as approaches to maintain and maximise an employee’s job
motivation.

Clayton Alderfer’s ERG Theory

Clayton Alderfer had reworked on Maslow’s need hierarchy Theory and reduced five levels of needs
down to three. According to him human motivation is based on three groups of core needs –
Existence, Relatedness, and growth - hence the name given ERG Theory.

Existence needs are the basic material requirements for survival of human beings, which conform to
Maslow’s physiological and Safety & Security needs.
Relatedness needs are desire of human beings to be associated with others and maintain
interpersonal relationships, which conform to Maslow’s Social need and extrinsic part of Esteem
needs (esteem from others).

Growth needs are desire of human beings for personal development and fulfilment, which conform
to intrinsic part of Esteem needs (self-esteem) and self-actualisation needs.

Where is it different from Maslow’s need hierarchy theory?

1. Two or more needs may be operative at the same time

2. If gratification of a higher level need is stifled, the desire to satisfy a lower level need
increases (frustration-regression)
3. Maslow’s hierarchy of needs seems like a stepwise progression of needs - the lower level
needs must be substantially gratified before one can move on. A person may be looking for
fulfilment of growth needs even though existence and relatedness needs are unsatisfied; or
all three need categories could be operating at the same time.