Motivation: Theory X and Theory Y

Management guru Douglas McGregor first described his two different styles of management,  Theory X and Theory Y in his 1960 book; “The Human Side of Enterprise”.

Theory X says people dislike work and try to avoid it.

Which means:

1. Because people hate work, bosses must force, threaten or bribe them before they work hard enough.
2. People like being ordered about. They seek security in authority and go out of their way to avoid responsibility.
3. Money is the main motivating force. Personal security comes second.
4. The only creativity most people display is avoiding work or finding ways around management edicts.

On the other hand Theory Y says people need to work as much as they need to rest or play. Work is an important part of a person’s psychological growth; many people find it interesting and even enjoy working.

This gives rise to four statements which contrast with their Theory X equivalents:

1. People are generally happy to direct themselves towards any acceptable goal or target.
2. Self-discipline is more effective and in many cases more severe than external direction. Under the right conditions people will seek out and accept responsibility.
3. Once they've met certain basic needs, people are motivated more by their internal need to realise their full potential than any base incentive.
4. Everyone is basically creative and capable of intelligence, most of the time these qualities are underused.

McGregor regards the two theories as basic attitudes. Most managers fall squarely into one camp or the other but  the theory followed can depend on circumstances.

For example, armed services depend on Theory X, so do many factory managers.

Although his research took place before modern knowledge-based industries appeared, McGregor recognised Theory Y style management as better for problem solving. Most knowledge workers work along Theory Y lines however there are still some companies and people subscribing to Theory X.

McGregor believed if you treat people according to one of these theories, they’d act as expected. In other words, if you assume people are lazy, they will be.