Theory X and Y

Douglas McGregor proposes two alternative sets of assumptions that manager hold about human being: Theory X is negative; Theory Y is positive.

Theory X assumes:

• most people dislike work
  
• less responsibility
• prefer to be directed
• motivated by financial incentives
• must be closely supervised, controlled

Theory Y assumes:

• people enjoy working
  
• responsibility
• do not like to be controlled
  
• motivated by desire
• autonomy

When employees are new, they have to be supervised closely to ensure their jobs are able to function, and prevent employees backslide into poor performance. In such situation, Theory X should be invoked.

Theory Y can be employed when employees respond to motivation, training, show initiative and commitment and are able to function without much supervision.