Theory X and Theory Y

Theory X and theory Y are still referred to commonly in the field of management and motivation. It remains a valid basic principle from which to develop positive management style and techniques. XY Theory remains central to organizational development, and to improving organizational culture.

McGregor's ideas suggest that there are two fundamental approaches to managing people. Many managers tend towards theory X, and generally get poor results. Enlightened managers use theory Y, which produces better performance and results, and allows people to grow and develop.

Theory X ('authoritarian management' style)

• The average person dislikes work and will avoid it if he/she can. 
• Therefore most people must be forced with the threat of punishment to work towards organisational objectives.
• The average person prefers to be directed; to avoid responsibility; is relatively unambitious, and wants security above all else.

Theory Y ('participative management' style)

• Effort in work is as natural as work and play.
• People will apply self-control and self-direction in the pursuit of organisational objectives, without external control or the threat of punishment.
• Commitment to objectives is a function of rewards associated with their achievement.
• People usually accept and often seek responsibility.

The XY Theory diagram is shown below.

 The YouTube videos below depict the X and Y theory.

 Basic Understanding of X and Y Theory

Now after understanding the basic characteristics of X & Y type of managers, 4 different of situations in employee-manager dynamics will arise.

We could analyse these 4 situations one by one.

Employee is lazy and X think they are lazy

In this situation employees are lazy and the manager assumes them to be lazy. This kind of scenario is harmful for the organisation and is neither going to help the organization nor the employees. The manager himself will always create an unhealthy work environment and will never encourage his lazy employees to change the scenario and think positive.

Employee is not lazy but X think they are lazy

In this situation employees are not lazy but the manager assumes them to be lazy. So this situation is very harmful and demotivates the employees who want to excel and do well. This stops the employees to do justice to their talent and makes them inefficient. The management underestimates the employees and ultimately hamper the growth of the employees and company.

Employee is lazy but Y believes they are not lazy

In this situation employees are lazy but the manager assumes them to be efficient and hard working. A lazy employee can be a problem for any organization but he needs to be dealt properly so that output may be maximized. So managers motivate these employees with compliments followed by constructive criticism, which has positive impact on the employees. They feel motivated to do well. Also, when people are given responsibility, they tend to work harder. If these kinds of positives steps are taken, there can be significant change.

Employee is not lazy and Y thinks they are not lazy

In this situation employees are not lazy and the manager also assumes them to be efficient and hard working. This is the most appropriate situation in any organization. Hard working and dedicated employees are constantly motivated by the managers and the growth of the company along with employees occurs in a very efficient way. Target set by the managers are easily achieved with high level of accuracy. The organization starts growing rapidly in all respects in this kind of ideal situation.

Taking examples from my own experience of work in a manufacturing industry, I have come across managers mostly lying in the Y category at my workplace and it has always resulted in better efficiency and effectiveness in employees work.

Now check yourself what kind of organisation you are working in or what kind of manager you are.