Theory X and Theory Y

        Theory X is the traditional approach to workers and working which assumes that people are lazy and dislike work, and that they have to be both threatened (for example, with losing their job) and rewarded. It assumes that most people are incapable of taking responsibility for themselves and have to be looked after. Theory Y, on the contrary, assumes that people have a psychological need to work and want achievement and responsibility.

           There are two fundamental approaches to managing people. Many managers tend towards theory x, and generally get poor results. Enlightened managers use theory y, which produces better performance and results, and allows people to grow and develop.

Theory x (authoritarian management style)

•The average person dislikes work and will avoid it he/she can.

•Therefore most people must be forced with the threat of punishment to work towards organizational objectives.

•The average person prefers to be directed; to avoid responsibility; is relatively unambitious, and wants security above all else.

Theory y (participative management style)

•Effort in work is as natural as work and play.

•People will apply self-control and self-direction in the pursuit of organizational objectives, without external control or the threat of punishment.

•Commitment to objectives is a function of rewards associated with their achievement.

•People usually accept and often seek responsibility.

•The capacity to use a high degree of imagination, ingenuity and creativity in solving organizational problems is widely, not narrowly, distributed in the population.

•In industry the intellectual potential of the average person is only partly utilized.

Also a crucial point is that the this theory is ONLY for Managers and NOT for workers. 

 

Here 's a small video to depict what a Theory X and Theory Y manager treats its workers.