Theory X and Y by Douglas McGregor.

Theory X and Theory Y are human labor motivation and management theories. McGregor's two
theories provide different models of worker motivation used by managers in human resource
management, organizational behavior, organizational communication, and organizational growth.

Management usage of Theory X and Theory Y can have varied effects on employee motivation and
productivity, and managers may choose to include tactics from both ideas into their operations.

Theory X-emphasizes the value of increased monitoring, external rewards, and punishments. This
management style implies that the average worker has no desire, avoids responsibility, and is focused
on individual goals. Theory X management, in general, feel their employees are less clever, lazier, and
work merely for a sustainable income. Employees' work, according to management, is motivated by
their own self-interest. Managers who feel their staff behave this way are more inclined to utilize
rewards or sanctions to motivate them. Theory X managers believe that all acts should be traced back
to the person responsible. Depending on whether the outcome is favorable or poor, the individual
might get either a direct award or a reprimand. This management approach is more successful with a
staff that is not intrinsically driven to perform well. Theory X can help a company that uses an
assembly line or manual labor. Using this principle in these sorts of work environments allows
employees to specialize in certain job areas, allowing the organization to mass-produce a greater
amount and quality of work.

Theory Y- emphasizes the motivating role of job satisfaction and encourages employees to tackle jobs
without direct supervision. Theory Y managers believe that people are internally driven, like their
jobs, and want to improve themselves without receiving a concrete reward in return. These
executives regard their staff as one of the most significant assets to the firm, driving the corporation's
internal operations. Employees also accept full responsibility for their job and do not require tight
supervision to produce a high-quality output.Theory Y managers prefer a more personal relationship
with their employees over a more conductive and teaching-based relationship. As a result, Theory Y
supporters may have a stronger connection with their supervisor, resulting in a more positive work
environment.

Theory Y, in contrast to Theory X, introduces a pseudo-democratic atmosphere into the workforce.

This allows the employee to plan, produce, and publish their work in a timely way in accordance with
their workload and projects.
Theory Y, although including innovation and dialogue, has limitations. While the atmosphere is more
personal and individualized, there is opportunity for mistake in terms of consistency and uniformity.