Theory X and Theory Y

Theory X and Theory Y Two conflicting theories regarding the human motivation to work, put forward by the US psychologist Douglas McGregor (1906–64), which have relevance in human-resource management.

Theory X is based on the premise that people are inherently lazy, dislike work, and will avoid it if they can. They prefer being directed to accepting responsibility; their only use for creativity is in getting round the rules of an organization. Because they are motivated to work only by money, they require coercion and tight control to make them function adequately.

Theory Y, on the other hand, assumes that people wish to be interested in their work and, given the right conditions, will enjoy it. Motivated by the wish to achieve, and to have their achievements recognized, most people will work to the best of their capabilities, creativity, and ingenuity. They accept responsibility and the rules of the organization they work for, imposing self-discipline on their work, given accepted targets.

The generally accepted view is that if management follow Theory Y they will achieve better operational performance. See also Theory Z.