Theory X and Theory Y

A book called “The Human Side of Enterprise” published by psychologist Douglas McGregor in 1960
outlined two different types of management theories called Theory X and Theory Y. Both theories are
used by managers to motivate their workforce and are different from each other.

Theory X states that employees dislike their jobs and hence do not care much about work or other
responsibilities so managers cannot put their trust in their employees.

Theory Y states that employees are creative, self-motivated, and like their jobs. Managers who opt for
theory Y include employees in their decision-making process and can trust them to give responsibility.

Real Life Example

Organizations like Ford Motor Company and FEMA use Theory X as a motivation theory for their
employees where the manager cannot rely totally on the employees. Managers use a reward system by
giving compensation to those who complete their tasks timely, supervising them on each step, give
them penalties to reduce the chances of work failure and increase the accuracy of the work.

And organizations like Apple, Starbucks, and google use Theory Y as a motivation theory for their
employees. They motivate their employees by assigning more tasks, giving more responsibility to them,
involving them in the decision-making processes, trusting the employees, and considering their inputs or
creative ideas for the betterment of the organization. Workers do the jobs without being supervised
every time and it increases their job satisfaction.