McGregor Theory X & Theory Y

Theory X Theory Y
  • Most people dislike work and want to avoid it
  • People require close direction
  • People want to avoid responsibility and have little ambition
  • Work is a natural activity
  • People can be self-directed if they are committed to the objective
  • Rewards help commitment
  • Most employees accept and seek responsibility
  • Employees have imagination, ingenuity and creativity

McGregor's work as a management consultant led him to formulate two contrasting sets of assumptions to describe how managers perceive their employees.  McGregor believed that managers traditionally perceive their employees using Theory X assumptions, assumptions that  employees inherently dislike work, that they have to be pushed into doing work, and that they prefer to be told what to do rather than think for themselves. 

McGregor believed that managers would be able to accomplish more if they perceived their employees as possessing the characteristics of his Theory Y assumptions.  Clearly, if managers assume that employees enjoy challenging and mentally stimulating work and that they will be committed to objectives they believe in, then leaders would manage their employees in a way that allows their employees to be self-directed and act autonomously to figure out the best way to do things.

McGregor Theory X & Theory Y