workers the ability to utilize their full potential. McGregor observed that managers had two different attitudes that led to entirely different managerial styles. He called them Theory X & Theory Y.
Theory X was the traditional way of management thinking. It was based on certain assumptions about human nature and human behavior. Many assumptions are made in the workplace, based on observations of workers, and their relationship with management. The kinds of tasks being performed, as well as the types of employees that constitute a particular company or organization can set the stage for the types of leadership roles that will be assumed. Theory X management assumes that the average person dislikes work. It assumes that the average person will avoid work if at all possible. It assumes that because of this dislike of work, the average person must be forced, controlled, or threatened with punishment to make him or her put forth enough effort to achieve the organizational goals. It also assumes that the average human being prefers to be directed and wishes to avoid responsibility. Basically, they are self-interested and prefer leisure rather than working for someone else. These same individuals, according to Theory X, have relatively little ambition, and seek security most of all. The last assumption of theory X is that a human beings primary motivators are fear and money. For many, many years, the typical manager operated from these assumptions, and of course, there are some who still do today. In these types of situations, motivation is more likely to take the form of punishment for unsatisfactory work, rather than reward for good work. Theory X people require a rigidly managed environment, usually requiring threats of disciplinary action as a primary source of motivation. It also holds that employees will respond only to monetary awards as an incentive to go the extra mile for the com
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