Douglas McGregor proposed two theories about employee motivation based on two
very different sets of assumptions that managers hold towards workers. Learn more
about the assumptions and validity of McGregor's employee motivation theories and
take a quiz to test your knowledge.
Motivation in the Workplace
What motivates you to do a great job when you go to work? Do you care about the
goals of the organization that you work for, or do you focus more on getting a regular
paycheck to bring home? Douglas McGregor studied these questions and proposed two
different views of employee motivation in his 1960 book 'The Human Side of Enterprise'.
These views are known as Theory X and Theory Y.
Definition and Assumptions of Theory X
Theory X is based on a pessimistic view of employee motivation and behavior. Theory
X assumes that employees dislike work, are not ambitious, want to avoid responsibility,
dislike change, and are self-centered.
Managers who hold these assumptions believe that employees can only be motivated
by money, promotions, and job security. Such managers are likely to use more of a
command and control approach with their employees. Employees will cooperate if they
feel their basic needs for income and security will be met.
Definition and Assumptions of Theory Y
Theory Y is based on an optimistic view of employee motivation and behavior. Theory
Y assumes that employees enjoy work that is meaningful, are willing to take on
responsibility, and are willing to work for organizational goals or causes they believe in.
Theory Y also assumes that employees are capable of creativity, ingenuity, and self-
direction.
Managers who hold these assumptions believe that employees are motivated not just
by material needs, but also by higher-level needs, such as self-esteem and a sense of
fulfillment. Since these are continuous needs throughout life, managers should address
these needs when seeking to motivate employees. Giving employees more authority,
broadening the scope of their jobs, and allowing them to have a say in decision-making
can all motivate employees to work hard for the organization.
Validity of Theory X and Theory Y
McGregor himself felt that Theory X had less validity than Theory Y. An employee
whose physical or material needs have been met will still have higher-level needs that
will not be fulfilled through Theory X management styles. Managers who hold Theory X
assumptions will not offer sufficient incentives to motivate their employees to achieve
organizational goals. Furthermore, if management becomes too coercive or punitive in
trying to motivate employees, the result may be a resentful workforce and reduced
worker output.