McGregor has given certain assumptions which are involved in motivating employee's.

 These assumptions are characterised in two opposite direction.

 

1. Theory X - There assumptions about human nature are negative.

2. Theory Y - These assumptions about human nature are positive.

 

1. The assumptions of Theory X are , 

° An average employee intrinsically does not like work and tries to escape it whenever possible.

 ° Since the employee does not want to work, he or she must be persuaded, compelled, or warned with punishment so as to achieve organizational goals. 

° Many employees rank job security on top, and they have little or no aspiration/ ambition.

° Employees generally dislike responsibilities.

° Employees resist change.

° An average employee needs formal direction. Etc

2. The assumptions of Theory Y are,

° Employees can perceive their job as relaxing and normal. They exercise their physical and mental efforts in an inherent manner in their jobs.

° Employees may not require only threat, external control and coercion to work, but they can use self-direction and self-control if they are dedicated and sincere to achieve the organizational objectives.

° If the job is rewarding and satisfying, then it will result in employees’ loyalty and commitment to organization.

° An average employee can learn to admit and recognize the responsibility. In fact he can even learn to obtain responsibility.

° The employees have skills and capabilities. Their logical capabilities should be fully utilized. In other words, the creativity, resourcefulness and innovative potentiality of the employees can be utilized to solve organizational problems.

Thus, we can say that Theory X presents a pessimistic view of employees’ nature and behaviour at work, while Theory Y presents an optimistic view of the employees’ nature and behaviour at work.