Theory X and Theory Y

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Douglas McGregor
Proposed theory "x" and theory "y" to be recognized as motivational theories in developing managerial leadership.
Theory X
All employees do not want to work other than to maintain a standard of living. Management treats workers as units of production rather than recognizing them as human beings who have other needs that must be met.
Autocratic Managerial Style
"Get the job done or else". Employed for only a paycheck, nothing else. No relationship between employees and management except production.
Theory Y
All employees are motivated not entirely by money but by the satisfaction of producing and being recognized as a contributing factor toward production. Management recognizes that and treats them accordingly.
Democratic Management Style
Employees are encouraged to bring suggestions to management and in turn work with management in solving problems.
Economic Factors
"If I change and it doesn't work, I'll lose my job." "If sales go down, they'll blame me."
Inconvenience
"If we change, it will double my work load." "If we change I'll have to learn a new way of doing things and I'm used to doing it the old way."
Uncertainty
Fear of the unknown don't know if this change will work.
Change in Interpersonal Relationship
Especially true when an employee is promoted to a management position. Change will disrupt social relationships and group standards. He's no longer " one of the boys" if changes are made.
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