Theory x and theory y were first explained by mcgregor in his book, 'the human side of enterprise,' and they refer to two styles of management – authoritarian (theory x) and participative (theory y. The element of self-motivation is absent, as per theory x, but present in theory y on the basis of theory x, employees stresses on psychological needs and security needs in contrast, based on theory y, employees concentrates on social needs, esteem needs and self-actualization needs.
For mcgregor, theory x and y are not different ends of the same continuum rather they are two different continua in themselves theory z: theory z deals with the way in which workers are perceived by managers, as well as how managers are perceived by workers is created and developed by william ouchi. The concept of theory x and theory y was developed by social psychologist douglas mcgregor it describes two contrasting sets of assumptions that managers make about their people: theory x – people dislike work, have little ambition, and are unwilling to take responsibility.
Theory x and theory y was an idea devised by douglas mcgregor in his book “the human side of enterprise” 1960 it encapsulated a fundamental distinction between management styles. Theory x and theory y were introduced in 1960 by douglas mcgregor, an american social psychologist in his book ‘the human side of enterprise’ this is one of the most famous motivational theories in management. In theory y, higher order needs are more important for motivation, though unsatisfied lower needs are also important 5 in theory x, people lack self-motivation and require to be externally controlled and closely supervised to get maximum output from them in theory y, people are self-directed and creative and prefer self-control 6.
Theory x, theory y and theory z during my last 5 years of work experience, i have the opportunity to work in two different kinds of atmosphere on one hand, the working environment in wipro technologies is flexible and employees are given liberty to complete the project on time. The assumptions under theory y are just the reverse 3 according to theory x most people have little capacity for creativity while according to theory y, the capacity for creativity is widely distributed in the population 4 in theory x, motivating factors are the lower needs.
Comparison and contrast on theory xy and z 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. Theory x and theory y were developed to better understand the concept of management as it relates to human/employee motivation assumptions forwarded by the theories suggest the managerial style that fits the different theories.
Theory x leaders would be more authoritarian, while theory y leaders would be more participative but in both cases it seems that the managers would still retain a great deal of control theory z managers would have to have a great deal of trust that their workers could make sound decisions.