What is the Theory X and Theory Y (With Examples)

Theory X and Theory Y of human behavior help motivation of employees. It is important to understand the two terms, internal motivation, and external motivation are made up of the forces which exist within an individual, I.e., McGregor’s needs want, and desires Theory X and Theory Y.

External motivation Includes the forces which exist inside the individuals as well as the control by the manager, including items such as salaries, working conditions, company policy, and job content items, such as recognition; advancement, and responsibility.

Do you think an integrated approach an amalgam of these two theories may be more effective in Your country?

Theory X and Theory Y with Examples

This theory incorporates both internal and external motivation.

McGregor sets forth two alternative views of human nature the first view is called Theory-X and the second view is called Theory-Y.

Theory X

According to theory X, there are the following assumptions about human nature, on which the manager has to base his motivation efforts:

1. The average human being has an inherent dislike of work and will avoid it if he can do so.
2. Because of his human characteristics of dislike of work, most people must be coerced, controlled, directed, and threatened with punishment to get them to put forth adequate efforts towards the achievement of organizational objectives.
3. Average human being prefers to be directed, wishes to avoid responsibility, has relatively little ambition, and wants security above all.

McGregor’s felt that the assumption of Theory-X was used in most industrial organizations of his time, but they were generally incorrect.

Thus, the management feels that development from these assumptions will be inadequate for the full utilization of each worker’s potential because they will often fail to motivate people to work for the realization of organizational objectives.

Hence, He felt the need to revise and correct these assumptions to conform to the present-day organizational setup and ever-developing personality of the employees.

It may be noted that Theory X is considered to be the “traditional view of direction and control”

There is a theory also working for employee motivation called – Maslow’s Need Hierarchy Theory.

Theory Y

Theory Y is McGregor’s other modem view of the nature of man.

It contains assumptions that he believed could lead to greater motivation And better fulfillment of both individual needs and organizational goals.

The Assumptions of Theory Y Are:

1. The expenditure of physical and mental efforts in work is as natural as play or rest.
2. External control and the threat of punishment are not the only means for bringing about efforts toward organizational objectives.
3. Commitment to objectives is a function of the reward associated with their achievement.
4. The average human being learns, under proper conditions, not only to accept but to seek responsibility.
5. The capacity to exercise a relatively high degree of imagination. Ingenuity and creativity in the solution of organizational problems are wide and distributed in the population.
6. Under the conditions of modern industrial life, the intellectual potentialities of the average human being are only partially utilized.

Deal of Theory X or Theory Y

It may be noted that the main foundation of Theory-Y is ‘Integration’. i.e., The establishment of an environment in which employees can best achieve their own goals by committing themselves to the organization’s objectives.

In doing so, Employees are expected to exercise a large degree of internal motivation. The emphasis on internal motivation implies that all employees will be motivated by self-esteem and self-actualization needs while on the job. This is not always true.

It may further be noted that it is rare that Theory X or Theory Y is used in its pure form. Instead, workable operational theories are developed using various amounts of assumptions of each theory.