Theory Y

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Theory X and Theory Y are two theories developed by Douglas M. McGregor. They are often compared and contrasted however, for the purposes of this paper the primary focus will be on Theory Y. It is important to note the differences between the two theories to understand why Theory Y is thought to be superior.
McGregor was intrigued by what motivated people to work hard and how leaders could foster their motivation (Bobic and Davis, 2003, p. 241). He also wanted to know why so many workerss were not happy with their jobs (McGregor, 1060, p. 22-24, 54). McGregor wrote The Human Side of Enterprise (1960) where he discussed his perspectives about management which “was that management was more than simply giving orders and coercing obedience; it was a careful balancing of needs of the organization with the needs of individuals” (McGregor 1960, 53-55). He based his new theories off of the idea of a classification of needs developed Abraham Maslow.
The foundation of Maslow’s hierarchy or pyramid is basic physiological, then safety and security, belongingness, esteem, and self-actualization (Maslow, 1970). Maslow observed the work environment and determined employees are primarily concerned with the culture and structure of the work place meeting their needs (Bobic & Davis, 2003, p. 242). McGregor applied these needs to the work environment of the mid to late 1950’s (Bobic & Davis, 2003, p. 240). The result was a new era of management theory and practice which tapped the creative potential of the workforce (Bobic and Davis, 2003, p. 241).
McGregor said “behind every managerial decision or action are assumptions about human nature and human behavior,” (The Economist Newspaper Limited, 2014, para.7). Whether or not they are awar...

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...08). Game on: Theory y meets generation y. Business Strategy Review, 19(4), 4-10. doi:10.1111/j.1467-8616.2008.00556.x
Bobic, M. P., & Davis, W. (2003). A kind word for theory x: or why so many newfangled management techniques quickly fail. Journal Of Public Administration Research & Theory, 13(3), 239.
BusinessDictionary.com. (2014). Theory x and theory y definition. Retrieved from http://www.businessdictionary.com/definition/theory-X-and-theory-Y.html
Colorado State University-Global Campus. (2014). Module 3-Management and management theory [Blackboard ecourse]. In ORG 502 – Effective organizations: Theory and practice (p. ____). Greenwood Village, CO: Victoria Figiel.
Maslow, A. (1970). Motivation and personality (2nd ed.). New York: Harper & Row.
The Economist Newspaper Limited. (2014). Guru Douglas McGregor. Retrieved from http://www.economist.com/node/12366698

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