Theory X and Theory Y
Maslow’ Hierarchy of Needs
ERG Theory
Two Factors Theory
Reinforcement Theory
The Equity Theory
McGregor’s Theory X and Theory Y:
 Provide an insight into the nature of people in relation to their work and about their work behaviors
 These theories are based on the managers’ assumptions about the people they are managing
 There is nothing “good” or “bad” about these theories
Theory X vs. Theory Y:
 Average human beings have an inherent dislike of work and will avoid it if they can
 People must be controlled, directed and threatened to make them work
 People prefer to be directed, wish to avoid responsibilities, have relatively little ambition, and want security above all
 Work activities are as natural as rest or play
 People will work willingly for the achievement of objectives to which they are committed
 Commitment level is related to the rewards expected
 People will not only accept responsibilities, but also seek it
 The two theories lead to two different approaches towards managing people 
 Theory X is pessimistic, static, and rigid. Control is primarily external i.e. imposed by the supervisor
 Theory Y is optimistic, dynamic, flexible with an emphasis on self-direction and matching individuals needs with the organizational demands
 
 
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