Theory Y and Theory X

Douglas McGregor's Theory Y and Theory X can also be

compared with these two leadership styles. Theory X can
be compared with Transactional Leadership where
managers need to rule by fear and consequences. In this
style and theory, negative behavior is punished and
employees are motivated through incentives.[13] Theory Y
 and Transformational Leadership are found to be similar,
because the theory and style supports the idea that
managers work to encourage their workers. Leaders
assume the best of their employees. They believe them to
be trusting, respectful, and self-motivated. The leaders
help to supply the followers with tool they need to excel 
 Transactional Transformational
Leadership is responsive Leadership is proactive

Works within the organizational culture Works to change the organizational culture by
implementing new ideas

Employees achieve objectives through Employees achieve objectives through higher

rewards and punishments set by leader ideals and moral values

Motivates followers by appealing to Motivates followers by encouraging them to

their own self-interest[11] put group interests first [12]

Individualized consideration: Each behavior is

Management-by-exception: maintain directed to each individual to express
the status quo; stress correct actions to consideration and support.[9]
improve performance.[9] Intellectual stimulation: Promote creative and
innovative ideas to solve problems.[9]
Born Leader
All Prophets

Situational leader
When a situation comes like absence of a person/ service
and need to take responsibility

Transformational Leader
Learn all skills needed to be a leader.
•Managers Give Directions
•Managers have subordinates
•Managers use an authoritarian,
transactional style
•Managers tell what to do
•Managers have good ideas
•Managers react to change
•Managers try to be heroes
•Managers exercise power over
people
•Leaders ask questions
•Leaders have followers
•Leaders have a motivational,
empowering style
•Leaders show what to do
•Leaders implement good ideas
•Leaders create change
•Leaders make heroes of
everyone around them
•Leaders develop power with
people
 Comparison Chart

BASIS FOR COMPARISON LEADERSHIP MANAGEMENT

Meaning Leadership is a skill of Management is an art of
leading others by systematically organizing
examples. and coordinating things in
an efficient way.

Basis Trust Control

Emphasis on Inspiring People Managing activities
Power Influence Rule
Focus on Encouraging change Bringing stability
Strategy Proactive Reactive
Formulation of Principles and guidelines Policies and Procedures

Perspective Leadership requires good Management has a short

foresightedness. range perspective.
 Four Phases of Leadership Growth:

Phase 1: I don’t know what I don’t know

Phase 2: I know what I don’t know
Phase 3: I grow and know and it starts to show
Phase 4: I simply go because of what I know