The idea of McGregor's motivation theory was developed by social psychologist Douglas McGregor. It describes two opposite sets of ideas that managers have about their people: Theory X - People dislike work, have high ambitions and are not interested in taking responsibility. Theo Y says people want to be self-managed and will try to achieve goals that they believe in.
McGregor's motivation theory based on management philosophy is discussed below:
Philosophy 01: Labor is seen as a technical component of production. These are considered products and can be bought and sold. These are considered cogs in the machine. They can be hired and fired at will.
Assumption: In order to achieve the goals of the company, the employee has to be controlled and supervised by the management. Employees have limited possibilities.
Philosophy 02: Labor has been seen as a human element with many positive possibilities. People are resources - not expenses. Human investment is very rewarding. To achieve common goals, management must develop and use human talent.
Assumption: Employees must be treated with respect and dignity because they are the source of competitive advantage