Theory X vs. Theory Y: How Management Theories are Adopted in the Workplace


For a long time, centuries in fact, management was just done “off the cuff”. In other words, there were no models or theories, and each person had their own style. It would be fair to say that the situation has turned on its head somewhat. Partly, this is due to the emergence of education in business, and one only has to cast their eye over the Santa Clara University MBA program to see this in full detail.

However, there’s no doubt that theories have helped to change the culture of management. For the purposes of today we are going to hone in on two that were devised by social psychologist Douglas McGregor. Going by the name of Theory X and Theory Y, let’s take a look at how they are adopted in the workplace.

Theory X

On the face of things, Theory X is something that a lot of people might frown upon and suggest is old-style. After all, those who manage in this style are seen as quite pessimistic in relation to their employees and automatically assume that they are not interested in the work at hand.

This has obvious repercussions. The theory states that employees working in such a team will only succeed if they are told to do jobs, and subsequently rewarded or punished based on the outcome of these tasks. It has been likened a lot to the carrot and stick approach and for this reason, many believe that it is outdated.

However, does Theory X serve a purpose in the modern-day world? Sure, in comparison to historical times, it’s nowhere near as prominent. However, to suggest that it is completely redundant would be an oversight. After all, there are some workplaces where employees just are not motivated for their work. They are there just to collect their pay cheque, and will require constant supervision. A lot of factory-based jobs can be classified like this; employees are not expected to use their initiative as such and if they don’t follow a set process, the whole flow of the workplace can be disrupted.

There are different examples, as well. For example, in the military, some would suggest that it would be a huge security threat should this approach not be taken. While Theory X is based on the fact that workers dislike their work, at the same time it can be adopted in those situations where strict protocol is required at all times.

Theory Y

Next on the list is Theory Y which as you might imagine, is the polar opposite to the previous theory.

Theory Y management involves having a more optimistic view of people, and generally getting their employees involved in their way of working. It means rather than being told what to do, employees tend to contribute to the process. There is a lot of trust involved in this method.

Unsurprisingly, in the modern-world, this is something that is becoming more popular. Employees feel more empowered, and can take ownership of their work. It also tends to correlate with the fact that there is more to motivation than just money, although again it isn’t a theory that can be used successfully in every workplace.