Theory:
McGreggors’ Theory X and Y
Theorist:
Douglas McGregor
Keywords: leadership, management, organizational dynamics
Biography:
Douglas McGregor was born in Detroit in 1906 just as it was starting to become the
center of the car-production industry in America. While still at school, McGregor worked in his
uncle's McGregor Institute which provided temporary accommodation for around 100 transient
workers.(Management Gurus: Douglas McGregor, n.d) It was soon after this experience he
began to notice a trend and gain insight into the problems facing the labor workforce.
When depression hit the industry in the 1930's, the Institute became a hostel for the
unemployed. McGregor organized mass soup kitchens and helped with the management of the
center. (Management Gurus: Douglas McGregor, n.d) As a district manager for a retail gasoline
merchandising firm, he learned the concerns of management. (Management Hall of Fame:
Leading Management Gurus, n.d.)
Soon after, McGregor went to Harvard to study psychology and after graduating took a
position at the Industrial Relations section of the Massachusetts Institute of Technology.
(Management Gurus: Douglas McGregor, n.d) He was the first full time psychologist on the
faculty of MIT, and helped to found its industrial Relations Section (Management Hall of Fame:
Leading Management Gurus, n.d.). In 1947, he became President of the progressive Antioch
College in Ohio where he combined his leadership of the college with his management work.
After 6 years he returned to MIT where he wrote his most important works on the management
of people (Management Gurus: Douglas McGregor, n.d).
Douglas McGregor is a pioneer in the field of industrial relations. Abraham Maslow viewed
McGregor as a mentor. His book “The Human side of Enterprise” laid the foundations for the
modern, people-centered view of management. (Management Hall of Fame: Leading
Management Gurus, n.d.)
Description of Theory:
McGregor’s Theory X and Y were the foundation of The Human Side of Enterprise.
Theory X is based on a philosophy that does not treat employees as human beings and that is
implemented by a dictatorial style of management. On the other hand, Theory Y treats
employees in a dignified manner and involves them fully. (Cunningham, 2011, p.1).
McGregor pointed that conventional managerial assumptions (which he called Theory X)
reflect an essentially negative view, that employees are lazy, are incapable of self-direction and
autonomous work behavior, and have little to offer in terms of organizational Problem solving.
(Kopelman, 2010, p.21).
Cunningham (2011) tells us that McGregor introduced Theory Y to management as a
positive approach to replace the commonly used Theory X negative approach for managing
employees. McGregor really believed that his theory Y proposition, if followed closely, could
bring about a major improvement in treating employees as human beings. He felt it was most
important to give due consideration to each and every employee.
According to McGregor, such beliefs will manifest themselves in behaviors such as
(Human Relations Contributors n.d.):
Theory X:

Results driven (to the exclusion of all else)

Intolerant

Distant

Short tempered

Demanding

Never thanking or praising

Results driven and people focused

Tolerant of different work styles

Involved/approachable

Encouraging

Recognizes and rewards good performance and behavior
Theory Y:
It is clear that The Human Side of Enterprise marked the beginning of the human
relations movement in the field of management practice. It should be noted that McGregor
understood that employees’ behavior reflects their attitudes. Theory Y managers should
constantly be taking action that promotes positive attitudes in the organization. When things are
kept on a positive wavelength there is a much better chance for satisfactory results. Managers
who do not have employees working with them should be smart enough to know that they must
change the way they manage the human element (Cunningham, 2011, p.1).
McGregor strongly believed that organizations that best utilized the human element and
the associated potential were the ones most likely to succeed. He also felt that properly organized
employees would be surprised at how effective they could be. He draws a broad conclusion that
the entire human element in an organization can only be effective and achieve best results if they
are on a common wavelength and that they work together. When this happens all employees
should be in a position to benefit from overall improved organizational results.
Prepared By: Ashley Mellor and Julie Fowble
References:
1. Cunningham, R. (2011). Douglas McGregor – A Lasting Impression. Ivey Robert
Cunningham, Ivey Business Journal October 2011, retrieved from
www.iveybusinessjournal.com/topics/the-organization/douglas-mcgregor-a-lastingimpression
2. Human Relations Contributors: Douglas McGregor. (n.d.) Retrieved November 7, 2012
from http.//accel-team.com/human_relations/hrels_03_mcgregor.html
3. Management Hall of Fame: Leading Management Gurus. (n.d.) Retrieved November 7,
2012 from http://www.iim-edu.org/managementgurus/Douglas_McGregor.htm
4. Management Gurus: Douglas McGregor. (n.d.). Retrieved November 7, 2012 from
http://www.managetrainlearn.com/page/douglas-mcgregor
5. Richard E. Kopelman, David J. Prottas, David W. Falk, (2010) "Construct validation of a
Theory X/Y behavior scale", Leadership & Organization Development Journal, Vol. 31
Iss: 2, pp.120 – 135.