PART I Theory X and Theory Y Theory X and Y are two distinct views of human being proposed by Douglas McGregor labeled as

PART I
Theory X and Theory Y
Theory X and Y are two distinct views of human being proposed by Douglas McGregor labeled as: THEORY X which is negative and THEORY Y which is positive in nature.

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PART II & PART III
MIT Sloan School of Management’s social psychologist Douglas McGregor developed an easy theory of Motivation. According to McGregor there are certain assumptions the drives a manager’s behavior towards an employee, these assumption maybe positive or negative. If it’s positive it is covered under THEORY Y and if it is negative it is covered under THEORY X.
Under Theory X,
This theory assumes that the employees that are lazy and have no real inclination towards their work need a certain coercion and tough attitude to tackle them at the workplace.

Theory Y,
The assumption that employees like work, they are creative, responsible and can work without much indulgence can be completely trusted, and left to exercise their own discretion.

According to the article, Theory X employees are motivated by rewards and punishments. Such employees are driven by extrinsic motivation. Theory X managers believes in close supervision and explicit control, they have few friends and their colleagues are untrustworthy.
Whereas Theory Y managers believe that most employees want to contribute, participate actively. They are motivated by the “strive to achieve”. They have positive attitude and have trustworthy colleagues.

The article illustrates how the personal viewpoint of the manager about the employee can have an important impact on the environment and culture of the organization. One of the key takeaways from the article is also that fact that manager’s own attitude and behavior must also be looked upon. Hence, not only is the employee attitude important it is also the manager who’s extremely crucial as the manager defines the employee accordingly. If the managers thinks that an employee falls under the category of “theory X” he/she will have lower expectation from the employee, which will indirectly affect the employee performance. However if the manager think an employee comes under “theory Y” category they will allow them to contribute to the workplace, they will trust and empower them.