The Theory X and Theory Y are theories related to motivation in human beings. These theories were first developed by Douglas McGregor at the MIT Sloan School of Management in the 1960s. These theories are used extensively in the fields of human resource management and in the study of organizational behavior. Broadly defined, these theories portray two very different attitudes towards motivation. According to Douglas McGregor, companies follow one of the two approaches.

Theory X

In organizations which follow this theory, the management assumes that workers are inherently lazy and will avoid work as far as possible. The worker is assumed to have a natural dislike for work of any kind and tries to avoid working as far as possible. Hence, they feel that worker should be forced to perform and hence have rigid apparatus of supervisors and extensive systems to control the workforce. The organizational structure is extremely hierarchical with tight controls. This is a rather pessimistic view of the workforce. In this school of thought, the worker is assumed to be inherently irresponsible, lazy and in constant need of threats and harsh language to be made to work. This invariably leads to an atmosphere of distrust between the employees and the management.

Theory Y

This theory states that workers are inherently creative people who will perform once the situations in the work place are conducive and motivating. Working is assumed to give workers a sense of accomplishment and fulfillment and hence by providing them with the right environment and encouragement, performance and productivity can be increased. This theory assumes that workers are ambitious, sincere and derive pleasure in working both physically and mentally. Managements that subscribe to this school of thought spend time in training and in facilitating performance rather than forcing performance. Emphasis is laid on training and orientation programs.

Today, these theories are not applied directly. This is because it is difficult to classify organizations into either of the two groups as organizations, typically follow a combination of both theories. That is, employees are simultaneously pressurized into performance and encouraged and rewarded for achievements. The management provides a conducive and favorable environment for the workers to perform while ensuring that there is an effective system of controls and a structure of authority. However, these theories have been the foundation for a lot of further research into what actually motivates workers.