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Theory X and Theory Y are created and developed byDouglas McGregor at the MIT Sloan School of Management in the 1960s
According to McGregor, there are the following two types of managers:
• Theory X managers - These managers believe that most of the people are self-centered, are only motivated by their physiological and safety needs, and are indifferent to the needs of the organization they work for. They (usually the team) lack ambition and have very little creativity and problem-solving capacity. As a result, they dislike their work and will try to avoid it. They will also avoid taking responsibility and initiative. There is one word to describe Theory X managers: distrust. They distrust their employees. These managers, therefore, tend to be authoritarian.
• Theory Y managers - As opposed to Theory X managers, Theory Y managers trust their employees. They believe that most of the people are high performers in a proper work environment. This is because most of the people are creative and committed to meeting the needs of the organization they work for. Theory Y managers also believe that most people like to take responsibility and initiative and are self-disciplined. Finally, they also believe that most people are motivated by all levels of needs in the Maslow's hierarchy of needs. These managers tend to provide more freedom and opportunity for career growth.
Trivia:
Given the same team and same work environment, a Theory Y Manager's team will perform better and deliver better quality work product than the team managed by the Theory X Manager. The reason is simple. People hate authority and in most cases rebel
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