Theory X and Theory Y

Douglas McGregor developed a philosophical view of humankind with his Theory X and Theory Y in 1960. These are two opposing perceptions about how people view human behavior at work and organizational life.

Theory X - With Theory X assumptions, management's role is to coerce and control employees.
- People have an inherent dislike for work and will avoid it whenever possible.
- People must be coerced, controlled, directed, or threatened with punishment in order to get them to achieve the organizational objectives.
- People prefer to be directed, do not want responsibility, and have little or no ambition.
- People seek security above all else.

Theory Y - With Theory Y assumptions, management's role is to develop the potential in employees and help them to release that potential towards common goals.
- Work is as natural as play and rest.
- People will exercise self-direction if they are committed to the objectives (they are NOT lazy).
- Commitment to objectives is a function of the rewards associated with their achievement.
- People learn to accept and seek responsibility.
- Creativity, ingenuity, and imagination are widely distributed among the population. People are capable of using these abilities to solve an organizational problem.
- People have potential.

Extracted from http://www.nwlink.com/~donclark/hrd/history/xy.html