What is 'Theory X & theory Y'


    Definition: Theory X and theory Y are part of motivational theories. Both the theories, which are very different from each other, are used by managers to motivate their employees. Theory X gives importance to supervision, while theory Y stresses on rewards and recognition.

    Description: Theory X and theory Y follow different methodologies of keeping people motivated. Theory X follows an authoritarian approach to motivate people. One of the key assumption in this approach is that the average employee doesn't like work and will do anything to avoid it.

    The other assumption under theory X is that the employees need to be threatened or forced to work towards the organizational goals. They will avoid responsibility and the managers have to supervise them at every step.

    In an organisation where theory X is followed, the management too follows an authoritarian style. There is little delegation of authority from the management.

    On the other hand, companies who follow theory Y have a more decentralized approach, which means that the authority is distributed among employees. This keeps them motivated.

    There are some key assumptions under theory Y. One of them is that employees take responsibility of their actions and work towards achieving the goals of the organization without much supervision.

    The workers are more participative and try to solve problems on their own without relying on supervisors for guidance. This type of management style is more common than theory X. In this type of management style, even a small employee can participate in the decision-making process.

    Theory X works on the idea of punishing people to keep the work going, while under theory Y, promotions, rewards, and recognition play an important part. This keeps employees motivated to work hard towards achieving goals of the organisation.
    The Economic Times
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