THEORY X AND THEORY Y

By: Sharon .A. Bansode

4th year B.Bsc nursing
CON BJ-GMC
 OBJECTIVES

 To know Who introduced theory X and Y.

 To understand assumptions of theory X and Y.
 To know characteristics of employee in theory X and Y.
 To understand difference between both the theories.
 Illustration of example in both the theory.
What do you think motivates people to come to work each
morning? ...
In the 1960s, social psychologist Douglas McGregor developed two
contrasting theories that explained how managers' beliefs about what
motivates their people can affect their management style. He labelled
these Theory X and Theory Y.

Lets learn in detail.

 INTRODUCTION

• Theory X and Theory Y are theories of

human work motivation and
management.
• They were created by Douglas
McGregor while he was working at the
Massachusetts Institute of Technology
(MIT) Sloan School of Management in
the 1950s and developed further in the
1960s.
• McGregor’s work was rooted in
motivation theory alongside the works
of Abraham Maslow, who created the
hierarchy of needs.
• The two theories proposed by
McGregor describe contrasting models
of workforce motivation applied by
managers in human resource
management, organizational behavior,
organizational communication, and
organizational development.
• Theory X and Theory Y were first
explained by McGregor in his book, "
The Human Side of Enterprise," and
they refer to two styles of management
– authoritarian (Theory X) and
participative (Theory Y).
 THEORY X

• This theory believes that employees are naturally unmotivated and dislike
working, and this encourages an authoritarian style of management.
• According to this theory, management must firmly intervene to get things
done.
• McGregor observed that X-type workers are in fact mostly in minority, and
yet in mass organizations, such as large scale production environment, X
Theory management may be needed and can be unavoidable.
 Assumptions of theory X

1. An average employee intrinsically does not like work and tries to escape it
whenever possible.Since the employee does not want to work, he must be
persuaded, compelled, or warned with punishment so as to achieve
organizational goals.
2. A close supervision is required on part of managers.
3. The managers adopt a more dictatorial style.Many employees rank job
security on top, and they have little or no aspiration/ ambition.
4. Employees generally dislike responsibilities.Employees resist change.
5. An average employee needs formal direction.
 CHARACTERISTICS

• This style of management concludes that workers Disfavor

working.
• Abstain responsibility and the need to be directed.
• Need to be controlled, forced, and warned to deliver what's
needed.
• Demand to be supervised at each and every step, with
controls put in place.
• Require to be attracted to produce results, else they have no
ambition or incentive to work.
• Drawing on Maslow’s hierarchy of needs, McGregor argues that a
need, once satisfied, no longer motivates.
• The company uses monetary rewards and benefits to satisfy
employees’ lower-level needs. Once those needs have been
satisfied, the motivation disappears. Theory X management hinders
the satisfaction of higher-level needs because it doesn’t
acknowledge that those needs are relevant in the workplace. 
Type of managers for Theory X

• Micromanagement: This occurs when a supervisor attempts to

maintain constant oversight of the work of all employees and
controls or directs all employee actions as much as possible.
• Helicopter Manager: A manager who is constantly hovering
around employees providing oversight. These managers will
intercede in a process or decision without providing employees
time to think and draw their own conclusions.
 Example of Theory X

 Example:
1. According to this type of theory, if a science student get medical seat
in medical college he/she will no longer have aspiration to work hard
after admission. As the motive is satisfied and interest in study
diminishes.
2. Similarly , some employee/staff after being satisfied with
physiological needs through job they do not have much interest left in
work and hence they start disliking their job.
 THEORY Y

• This theory explains a participative style of

management, that is, distributive in nature.
• It concludes that employees are happy to work, are
self-motivated and creative, and enjoy working with
greater responsibility.
• In Y-type organizations, people at lower levels are
engaged in decision making and have more
responsibility.
 Assumptions of Theory Y

1. Employees can perceive their job as relaxing and normal. They exercise
their physical and mental efforts in an inherent manner in their jobs.
2. Employees may not require only threat, external control and coercion
to work, but they can use self-direction and self-control if they are
dedicated and sincere to achieve the organizational objectives.
3. If the job is rewarding and satisfying, then it will result in employees’
loyalty and commitment to organization.
4. An average employee can learn to admit and recognize the
responsibility. In fact, he can even learn to obtain responsibility.
5. The employees have skills and capabilities. Their logical capabilities
should be fully utilized. In other words, the creativity, resourcefulness
and innovative potentiality of the employees can be utilized to solve
organizational problems.
 CHARACTERISTICS

It estimates that workers −

• Take responsibility willingly and are encouraged to fulfill
the goals they are given.
• Explore and accept responsibility and do not need much
guidance.
• Assume work as a natural part of life and solve work issues
imaginatively.
 Type of management for Theory Y

Employee Autonomy: This occurs when employers empower their

workforce to make decisions at the right level of management.
Employees are allowed to come up with their own solutions to
problems, and management will only intercede if efforts go awry or
interfere with the larger objectives of the organization.
 Example of Theory Y

Example:
1.Group of engineering students participating in
intercollege competition put their efforts at individual
level to show the best as they are motivated and
interested in doing their work.
2.Staff takes overall care of a patient and suceeds to help
him recover just because she enjoys doing her job and
is interested in it.
 COMPARISON
Theory X
• Work is inherently distasteful to most people,
and they will attempt to avoid work
whenever possible.
• Most people are not ambitious, have little
desire for responsibility, and prefer to be
directed.
• Most people have little aptitude for creativity
in solving organizational problems.
Theory Y
 Work can be as natural as play if the
conditions are favorable.
 People will be self-directed and creative to
meet their work and organizational objectives
if they are committed to them.
 People will be committed to their quality and
productivity objectives if rewards are in
place that address higher needs such as self-
fulfillment.
 Contd...

THEORY X
• Motivation occurs only at the
physiological and security levels of
Maslow’s hierarchy of needs.
• Most people are self-centered. As a result,
they must be closely controlled and often
coerced to achieve organizational
objectives.
• Most people resist change.
• Most people are gullible and unintelligent.
THEORY Y
 The capacity for creativity spreads
throughout organizations.
 Most people can handle responsibility
because creativity and ingenuity are
common in the population.
 Under these conditions, people will
seek responsibility.