What Is Theory X and Theory Y?
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. These
theories continue to be important even today.
In this article and video we will explore McGregor's theory further, and- look at how it
applies in the workplace.
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). [1]
If you believe that your team members dislike their work and have little motivation,
then, according to McGregor, you'll likely use an authoritarian style of management.
This approach is very "hands-on" and usually involves micromanaging people's work
to ensure that it gets done properly. McGregor called this Theory X.
On the other hand, if you believe that your people take pride in their work and see it
as a challenge , then you'll more likely adopt a participative management style.
Managers who use this approach trust their people to take ownership of their work
and do it effectively by themselves. McGregor called this Theory Y.
Theory X
Theory X managers tend to take a pessimistic view of their people, and assume that
they are naturally unmotivated and dislike work.
Work in organizations that are managed like this can be repetitive, and people are
often motivated with a "carrot and stick" approach. Performance appraisals and
remuneration are usually based on tangible results, such as sales figures or
product output, and are used to control and "keep tabs" on staff.
This style of management assumes that workers:
● Dislike their work.
● Avoid responsibility and need constant direction.
● Have to be controlled, forced and threatened to deliver work.
● Need to be supervised at every step.
Have no incentive to work or ambition, and therefore need to be enticed by
According to McGregor, organizations with a Theory X approach tend to have
several tiers of managers and supervisors to oversee and direct workers. Authority is
rarely delegated, and control remains firmly [Link] Theory X
management has largely fallen out of fashion in recent times, big organizations may
find that adopting it is unavoidable due to the sheer number of people.
Theory Y
Theory Y managers have an optimistic opinion of their people, and they use a
decentralized, participative management style. This encourages a more
collaborative , trust-based relationship between managers and their team
members.
People have greater responsibility, and managers encourage them to develop their
skills and suggest improvements. Appraisals are regular but, unlike in Theory X
organizations, they are used to encourage open communication rather than to
control staff.
Theory Y organizations also give employees frequent opportunities for promotion.
This style of management assumes that workers are:
● Happy to work on their own initiative.
● More involved in decision making.
● Self-motivated to complete their tasks.
● Enjoy taking ownership of their work.
● Seek and accept responsibility, and need little direction.
● View work as fulfilling and challenging.
● Solve problems creatively and imaginatively.
Theory Y has become more popular among organizations. This reflects workers'
increasing desire for more meaningful careers that provide them with more than
just [Link]'s also viewed by McGregor as superior to Theory X, which, he says,
reduces workers to "cogs in a machine," and likely demotivates people in the long
[Link] and the tight deadlines that they have to meet.
When to Use Theory X and
Theory Y
Although both styles of management can motivate people, the success of each will
Most managers will likely use a mixture of Theory X and Theory Y. You may,
however, find that you naturally favor one over the other. You might, for instance,
have a tendency to micromanage or, conversely, you may prefer to take a more
hands-off approach .largely depend on your team's needs and wants and your
organizational objectives.
You may use a Theory X style of management for new starters who will likely need a
lot of guidance, or in a situation that requires you to take control such as a crisis
