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Society, Management and Accounting

McGregor's Theory X and Theory Y

Organizational Behavior: Perception, Motivation, Group Dynamics, Organizational Culture

Paper I · Unit 3 Section 8 of 11 0 PYQs 25 min

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McGregor's Theory X and Theory Y

Douglas McGregor (The Human Side of Enterprise, 1960) argued that managerial assumptions about human nature fundamentally shape how managers treat employees:

Dimension Theory X (Negative Assumptions) Theory Y (Positive Assumptions)
View of work Workers inherently dislike work; avoid it if possible Work is as natural as play/rest
Motivation Must be coerced, controlled, directed, threatened Self-directed when committed to objectives
Ambition Workers prefer to be directed; avoid responsibility; desire security Workers seek responsibility; exercise creativity
Motivation source Primarily financial (lower-order needs) Higher-order needs (esteem, self-actualisation)
Management implication Close supervision, tight control, autocratic style Participation, self-control, democratic style

McGregor's position: Theory Y is more accurate and effective for modern knowledge workers. However, different situations may call for different approaches — Theory X may be appropriate for unskilled repetitive work in crisis.