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Theory X and Theory Y Employee motivation in business

Theory X and Theory Y: Employee Motivation in Business

Introduction

Douglas McGregor proposed two views on employee motivation and management in his 1960 book The Human Side of Enterprise. Eschewing descriptive terms he named his ideas Theory X and Theory Y. Theory X and Theory Y both begin with the assumption that managements role is to gather the tools and human resources required for production (Net.MBA).

Theory X

According to Amy McMillan Theory X is founded on the premise that people are lazy and dont want to work. Given this it becomes the job of management to coerce, cajole, or force employees to produce. This theory is founded on these suppositions, a normal person is does not like to work and will do what it takes to get out of work. Employees must be made to work. Employees want to avoid responsibility, have little ambition and place job security above ambition. People are motivated by extrinsic rewards such as money, promotion and recognition and are responsible for their own behavior.

Theory Y

Theory Y asserts employees if treated differently by management would behave differently (McMillan). This theory presumes that higher order needs govern individuals and is founded on these presumptions,