Thirty Second Theories: Theory X, Theory Y

Theory Designer: Douglas McGregor

Theory Summary:
Theory X and Theory Y involve the assumptions managers have about their employees and co-workers

Theory X: People tend to be passive even resistant to organizational needs. The assumption is that without active intervention by management people are passive (i.e. need an external control)

Theory Y: People desire to do their best, exhibit self-control and self direction. Management’s role is to help bring these qualities out in people

Key words:
Extrinsic Motivation (external)
Intrinsic Motivation (internally driven)

Interesting Quote:
I believed, for example, that a leader -could operate successfully as a kind of adviser to his organization. I though I could avoid being a “boss.” Consequently, I suspect, I hoped to duck the unpleasant necessity of making difficult decisions, of taking the responsibility of one course of action, among many uncertain alternatives, of making mistakes and taking the consequences. I thought that maybe I could operate so that everyone would like me — that “good human relations” would eliminate all discord and disagreement.

I couldn’t have been more wrong. … I finally began to realize that a leader cannot avoid the exercise of authority any more than he can avoid responsibility for what happens to his organization.”(“On Leadership”, Antioch Notes (May 1954, pp. 2-3)).

Publications: The Human Side of Enterprise 1960

Affiliation: President of Antioch College, founded MIT’s industrial relations section

Related Links:
Management Guru
NetMBA