McGregor's X-Y Theory of Motivation

Motivation is a basic psychological process in human behaviour, which is the result of the interaction of the individual and the situation. The basic motivational drive differs from individual to individual. The term ‘motivation’ has been derived from the Latin word ‘movere’ which means “to move”.

“Motivation refers to the way in which urges, drives, desires, aspirations, strivings or needs direct, control or explain the behaviour of human beings”      --Dalton E. McFarland

   

“Motivation is the process that accounts for an individual’s intensity, direction, and persistence (duration) of effort toward attaining a goal”

• Intensity:         How hard a person tries
• Direction:        Toward beneficial goal
• Persistence:     How long a person tries (Duration)

While several researchers have contributed to the Theory of Motivation, Douglas McGregor’s contribution is still referred to commonly in the field of management and motivation. In his book ‘The Human side of Enterprise’(1960) he proposed famous X-Y Theory with two pairs of assumptions about human beings. The X-Y Theory still remains as a valid basic principle to develop positive management style and techniques. The first set of assumptions is contained in Theory X and the second set in Theory Y.

Theory X

Assumes that employees dislike work, lack ambition, avoid responsibility, and must be directed and coerced to perform.

According to McGregor Theory X is a traditional theory of what workers are like and what management must do to motivate them. This is also called as ‘carrot and stick’ approach to motivation. Managers assume that workers have to be persuaded and pushed to perform by offering rewards for higher productivity and punishments for performance below standard.        

Theory Y

Assumes that employees like work, seek responsibility, are capable of making decisions, and exercise self-direction and self-control when committed to a goal.

This theory does not depend upon use of authority as an instrument of command and control. It assumes that employees could be motivated by delegation of authority, job enlargement and other participative management practices.

McGregor’s theory explains the failure of many management systems and introduces the concept of new ways of management. Theory X and Y are just assumptions. They are intuitive deductions and are not based on research.

No person would belong exclusively either to Theory X or Theory Y. He shares the traits of both in varying degrees under different situations. Thus McGregor’s theories are important tools in understanding the behaviour of human beings and in designing incentives to motivate the employees. Neither of the two is applicable fully in all situations and to all types of employees. However, Theory X can be assumed to be applicable to unskilled and uneducated operative workers whereas, Theory Y can be assumed as more applicable to skilled and educated employees who are mature enough and understand their responsibility.