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Theory X and Theory Y Today
Douglas Mac Gregor suggested that there are two different ways in which we can look al workers' attitudes toward work. Each of these views, which Mac Gregor labeled Theory X and Theory Y, has implications for management.
Theory X
According to Theory X, people do not really like to work, so they must be "coerced, controlled, directed, threatened with punishment" to get them to work. The average worker avoids responsibility, is unambitious and wants security more than anything else. Management based on Theory X is paternalistic at best and, at very least, authoritarian. Rewards and punishment are assumed in this theory to be the key to employee productivity.
These assumptions lie behind most organizational principles today, and give rise both to "tough" management with punishments and tight controls, and "soft" management which aims at harmony at work. Both these are "wrong" because man needs more than financial rewards at work, he also needs some deeper higher order motivation, the opportunity to fulfill himself. Theory X managers do not give their staff this opportunity so that the employees behave in the expected fashion.
Theory Y
Theory Y is a more generous view of human nature. It sees "physical and mental effort in work to be as natural as play or rest", and it recognizes self-direction instead of external control as the principal means of securing effort. Control and punishment are not the only ways to make people work, man will direct himself if he is committed to the aims of the organization. If a job is satisfying, then the result will be commitment to the organization. Imagination, creativity and ingenuity can be used to solve work problems by a large number of employees. According to Theory Y, under the proper conditions, people will accept and even seek responsibility. Employees have a much greater capability for problem solving than most organizations realize. Management based on Theory Y relies on a worker's achievement-oriented motives and his or her desire for self-fulfillment rather than on sheer managerial authority. Theory Y calls for developing organizations in which employees can best fulfill their goals by working toward the success of the organization.
Conclusions
Theory X may not be altogether wrong, but certainly it is no longer enough. Theory Y is difficult to put into practice on the shop floor in large mass production operations, but it can be used initially in the managing of managers and professionals. Staff will contribute more to the organization if they are treated as responsible and valued employees
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