Prof. Douglas McGregor was psychologist management consultant and an author, who in his book named ‘Human side of Enterprise’, described two distinct sets of assumptions about people at work. He believed that these assumptions influence the thinking and attitude of most managers about the people at work. McGregor labelled these set of assumptions as Theory ‘X’ and Theory ‘Y’.
Theory X is based on traditional approach and emphasize on controlling the man. X theory lists a set of assumptions which present a pessimistic view of human nature.
The main assumptions of theory X about human nature are as follows :
1. The average employee/human being inherently dislikes work and considers as burden and avoids work, if possible.
2. Since human being dislike work they must by coerced and controlled with punishment to make efforts to achieve objectives.
3. The average human beings, by nature, resist change and like to work with traditional techniques/methods.
4. The wish to avoid responsibility.
5. They are relatively less ambitious and lack creativity.
6. They are inherently self-centered and indifferent to organizational objectives.
7. They work for economic and financial gains.
8. They want security above all other factors associated with the work.
9. The average human being/employee is gullible and can be easily cheated by charlatants.
Theory Y :
Views human behaviour in optimistic or positive terms. It assumes the responsibility and positive role in working environment as its base. The assumptions of this theory are:
1. Employees find that work is as natural as play or rest, if organizational conditions are appropriate.
2. They welcome new techniques and and changes are ready to accept them.
3. They learn not only to accept, but to seek responsibility.
4. They seek responsibility because it allows them to satisfy higher level needs which motivates them.
5. They are self-motivated and self-controlled. Employees will exercise self-direction and self-control of they are committed to objectives.
6. They are intellectual, imaginative and creative to solve problems.
7. They want to make maximum use of their potential.
8. They work not only for fulfilling their basic needs, but also for self-esteem and self¬actualization needs.
