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Theory X - from Douglas Mcgregor's 1960 book The Human Side Of Enterprise. The essential tenet from which management rules is that workers dislike work and must be forced to do so with threats. Theory X also proposes that most people want to be told what to do, they would rather follow orders than try to make decisions. These theory X managers use an authoritarian leadership style and get poor results.

Theory Y - from Douglas Mcgregor's 1960 book The Human Side Of Enterprise. In this case managers start with the premise that work is a natural part of human life and people want to work. Theory Y managers role is to lead a group of people who want to do a good job. They keep focused on the overall system and support workers as needed to help them do as well as they want to do.

Related Term:

Theory Z - from the 1981 book by William Ouchi "Theory Z: How American management can Meet the Japanese Challenge." Not really related to Theory X and Theory Y. Basically the book examined what management concepts Japan had used to succeed and how those concepts could be applied in America. Theory Z examines how workers contribute (Theory X and Y talk about workers only from the perspective on how to manage them) and proposes that workers naturally wish to cooperate and are loyal to the organization.

Online Resources:

Douglas Mcgregor's Theory X -Y

The X Y and Z of Management Theory

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