Douglas McGregor suggested that there are two different ways in which we can look at workers attitudes toward work. Each of these views, which McGregor called Theory X and Theory Y, has implications for management.
Theory X ('authoritarian management' style)
-People do not really like to work and will avoid it if at all possible so they must be coerced, controlled, directed, threatened with punishment to get them to work. -The average worker avoids responsibility, is unambitious and wants security more than anything else. -Management based on Theory X is paternalistic at best and, at very least, authoritarian. -Rewards and punishment are assumed in this theory to be the key to employee productivity. Theory X managers believe that workers are only motivated by one thing - money. They are selfish, lazy and hate work. They need to be closely controlled and directed.
Theory Y ('participative management' style)
The theory Y is to some extent the opposite image of X
-Effort in work is as natural as rest and play.
-People will apply self-control and self-direction in the pursuit of organizational objectives, and the external control or the threat of punishment is not the only means of getting them to work. -Commitment to objectives is a function of rewards associated with their achievement. The most important reward: satisfaction of their own ego needs. -People usually accept and often seek responsibility.
-Creativity, ingenuity, and imagination are widely distributed among the population. People are capable of using these abilities to solve an organizational problem. -In modern industry the intellectual potential of the average person is only partly utilized. Theory Y managers believe that Workers are motivated by many different factors apart from money. They enjoy their work and they will happily take on responsibility and make decisions for the business.
Theory z - William Ouchi
Theory Z makes certain...