Theory X is a managerial assumption that employees dislike work, responsibility, and accountability and must be closely directed and controlled to be motivated to perform.
Theory X managers are assumed to view the average employee as:
- Disliking work and finding ways to avoid it as much as possible.
- Responding to threats of punishment or control because of the dislike of work.
- Avoiding responsibility because of lack of ambition.
- Wanting to be directed and have security.
Theory Y is a managerial assumption that employees want to be challenged, like to display creativity, and can be highly motivated to perform well if given some freedom to direct to manage their own behavior.
The Theory Y manager assumes that the average employee:
- Enjoys work and does not want to avoid it
- Wants to achieve organizational goals through self-directed behavior
- Response to rewards associated with accomplishing goals.
- Will accept responsibility
- Has initiative and can be creative in solving organizational problems
- Is intellectually underutilized