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Theory X is a "we versus they" approach, meaning it is the management versus the employees. [6] The soft approach is characterized by leniency and less strict rules in hopes for creating high workplace morale and cooperative employees. [7] Implementing a system that is too soft could result in an entitled, low-output workforce. [7]
He has contributed much to the development of the management and motivational theory, and is best known for his Theory X and Theory Y as presented in his book 'The Human Side of Enterprise' (1960), which proposed that manager's individual assumptions about human nature and behavior determined how individual manages their employees. [2]
Theory Y conversely suggests that it is human nature to be motivated by objectives and gain satisfaction through the completion of work. [2] Those who believe in Theory Y believe that it is the responsibility of management to foster environments where employees can develop potential and utilize their skills to achieve objectives. [3]
Theory X states that employees dislike and try to avoid work, so they must be coerced into doing it. Most workers do not want responsibilities, lack ambition, and value job security more than anything else. [2] McGregor personally held that the more optimistic theory, Y, was more valid.
Douglas McGregor's Theory Y and Theory X can also be compared with these two leadership styles. Theory X can be compared with Transactional Leadership where managers need to rule by fear and consequences. In this style and theory, negative behavior is punished and employees are motivated through incentives. [citation needed]
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The grid theory has continued to evolve and develop. The theory was updated with two additional leadership styles and with a new element, resilience. [citation needed] In 1999, the grid managerial seminar began using a new text, The Power to Change. [2] The model is represented as a grid with concern for production as the x-axis and concern for ...