Theory X and Theory Y

Douglas McGregor (1906 - 1964) is one of the forefathers of management theory and one of the top business thinkers of all time. He was a social psychologist who became the President of Antioch College. He later became a professor of management at Massachusetts Institute of Technology (he was succeeded by Warren Bennis). His book The Human Side of Enterprise (1960) had a profound influence on the management field, largely due to his Theory X and Theory Y.

Theory X

With Theory X assumptions, management's role is to coerce and control employees.

People have an inherent dislike for work and will avoid it whenever possible.
People must be coerced, controlled, directed, or threatened with punishment in order to get them to achieve the organizational objectives.
People prefer to be directed, do not want responsibility, and have little or no ambition.
People seek security above all else.

Theory Y

With Theory Y assumptions, management's role is to develop the potential in employees and help them to release that potential towards common goals.

Work is as natural as play and rest.
People will exercise self-direction if they are committed to the objectives (they are NOT lazy).
Commitment to objectives is a function of the rewards associated with their achievement.
People learn to accept and seek responsibility.
Creativity, ingenuity, and imagination are widely distributed among the population. People are capable of using these abilities to solve an organizational problem.
People have potential.