McGregor's XY Theory

This theory remains a valid and predictable means by which you can develop a positive leadership style “to unite them in spirit.” It is central to organizational development and corporate culture.

McGregor maintained that there are two fundamental approaches to managing people, popularized as Theory X and Theory Y. Theory X tends to use an authoritarian leadership style. In contrast, Theory Y leans toward a participative approach. In today’s environment, Theory Y generally is accepted as producing better performance, in that it allows people more


Herzberg’s Factors Affecting Motivation

Factors Leading to Dissatisfaction

Factors Leading to Satisfaction

1. Organizational policy

1. Sense of achievement

2. Quality of management

2. Level of recognition

3. Relationship with boss

3. Intrinsic value of the job

4. Working conditions

4. Level of responsibility

5. Wages

5. Opportunities for advancement

6. Interpersonal relationships

6. Status provided

Engage Heart, Mind, and Spirit: Create a Morale Advantage • 141

Contrasting Views of Theory X and Theory Y


Theory X

(Authoritarian Management Style)

Theory Y

(Participative Management Style)

The average person dislikes work and will avoid it, if possible.

People must be forced to work toward organizational objectives.

Individuals prefer to be directed, look to avoid responsibility, generally lack ambition, and want security above all else.

Effort in work is natural and enjoyable.

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.

People use a high degree of imagination, ingenuity, and creativity to solve business problems.

latitude to grow and develop in self-motivating surroundings. The two styles are contrasted in Table 7.2.

Throw the troops into a position from which there is no escape and even when faced with death they will not flee. For if prepared to die, what can they not achieve?

Then officers and men together put forth their utmost efforts. In a desperate situation they fear nothing; when there is no way out they stand firm ... they are bound together.

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