Fundamentals of Management, 8th ed



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Theory X

is a relatively pessimistic and negative view of workers

and is consistent with the views of scientific management.

Theory Y

is more positive

and represents the assumptions made by human relations advocates. In McGregor’s

Table 1.1

Theory X and Theory Y

Theory X Assumptions

1. People do not like work and try to avoid it.

2. People do not like work, so managers have to

control, direct, coerce, and threaten employees to

get them to work toward organizational goals.

3. People prefer to be directed, to avoid responsibil-

ity, and to want security; they have little ambition.

Theory Y Assumptions

1. People do not naturally dislike work; work is a

natural part of their lives.

2. People are internally motivated to reach objectives

to which they are committed.

3. People are committed to goals to the degree that

they receive personal rewards when they reach

their objectives.

4. People will both seek and accept responsibility

under favorable conditions.

5. People have the capacity to be innovative in

solving organizational problems.

6. People are bright, but under most organizational

conditions, their potential is underutilized.

Source: D. McGregor and W. Bennis, The Human Side Enterprise: 25th Anniversary Printing,

1960, Copyright © 1960 The McGraw-Hill Companies, Inc. Reprinted with permission.

Douglas McGregor

developed Theory X

and Theory Y. He

argued that Theory X

best represented the

views of scientific

management and

Theory Y repre-

sented the human

relations approach.

McGregor believed

that Theory Y was

the best philosophy

for all managers.


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