The first section explains the development of Theory X and Theory Y. Second, the effect of Theory X and Theory Y on management functions is discussed. Third is a criticism of Theory Y followed by the concluding section, Theory X and Theory Y in the twenty-first century.
CONCEPTUALIZATION AND DEVELOPMENT
After the Hawthorne experiments and the subsequent behavioral research of the 1930s and 1940s, the human relations approach to management joined the classical perspective as a major school of management thought. Whereas the classical school as espoused by management pioneers such as Frederick Taylor and Henri Fayol focused on principles of management, scientific selection and training, and worker compensation, the human relations approach emphasized behavioral issues such as job satisfaction, group norms, and supervisory style.
The human relations model was hailed as a more enlightened management paradigm because it explicitly considered the importance of individual and how managers could increase productivity by increasing workers' job satisfaction. The end goal for management increased employee productivity; the assumption was that satisfied workers would be more productive compared with workers who felt antagonized by the companies they