Theory X and theory Y are theories of motivation, which were developed by Douglas McGregor. This paper will discuss the differences between theory X and theory Y, under the light of some examples. According to McGregor (2005), theory X assumes that all employees dislike work and are inherently lazy. Hence, to motivate them management needs to direct them, keep them under close supervision, and sometimes even punish them.Huge, Kapoor & Pride (2010) believe that the advantage of the theory X approach is that it fulfills lower level needs highlighted in Maslow’s hierarchy. However, this is a disadvantage too, as it doesn’t satisfy higher level needs.

In contrast, theory Y assumes that people like their work, and have an ambition (McGregor, 2005). Hence, to motivate them management needs to harness their creativity by giving them responsibility through shared decision-making, constructive feedback and rewards. The management should also allow self-direction and discretion to its employees.Erkilic (2008) believes that the advantage of the theory Y approach is that it fulfills the higher level needs of a person, and may lead to better productivity. The implication of this theory is that McGregor give the management two extreme approaches to managing people. The management lies close to one style or the other, and that influences their management style.

For example, a manager that believes in theory X, he’ll try to motivate his employees through extrinsic needs like perks and bonuses.On the other hand, a manager that believes in theory Y would focus on the intrinsic needs of his employees. It will try to align his personal goals to that of the organization, give him more responsibilities and try to create more opportunities of growth. In conclusion, McGregor’s theory X and theory Y have been guidance for organizations as to how to manage employees.

His promoting of theory Y in organizations lead management to devise programs that will benefit the employees, while at the same time attain organizational goals.