16 | COSERE 2.3.2. Douglas McGregor – Theory X and Y. Two possible ways to understand the working people: Theory X Work is inherently distasteful to most people, and they will attempt to avoid work whenever possible. Most people are not ambitious, have little desire for responsibility, and prefer to be directed. Most people have little aptitude for creativity in solving organizational problems. Motivation occurs only at the physiological and security levels of Maslow’s hierarchy of needs. Most people are self-centred. As a result, they must be closely controlled and often coerced to achieve organizational objectives. Most people resist change. Most people are gullible and unintelligent. Essentially, Theory X assumes that the primary source of employee motivation is monetary, with security as a strong second. Under Theory X, one can take a hard or soft approach to getting results. Theory Y Theory Y management makes the following assumptions: Work can be as natural as play if the conditions are favourable. People will be selfdirected and creative to meet their work and organizational objectives if they are committed to them. People will be committed to their quality and productivity objectives if rewards are in place that address higher needs such as self-fulfilment. The capacity for creativity spreads throughout organizations. People will seek responsibility. McGregor stressed that Theory Y management does not imply a soft approach. Some people may not have reached the level of maturity assumed by Theory Y and may initially need tighter controls that can be relaxed as the employee develops. If Theory Y holds true, an organization can apply the following principles of scientific management to improve employee motivation: decentralization and delegation, job enlargement, participative management, performance appraisals, etc.
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