Theories

Douglas McGregor - Theory X & Theory Y:

In 1960 Douglas McGregor defined an assumption about the nature of humans in the work place. These assumptions are the basis of Theory X and Theory Y teachings. Generally speaking, Theory X assumes that people are lazy and will avoid work whenever possible. Theory Y, on the other hand, assumes that people are creative and enjoy work.

For instance, one author refers to Theory X as "Autocratic Style", and Theory Y as "Participative Style".  Yet another author writes that Theory X and Theory Y are sometimes termed as "hard" and "soft" management, although careful to point out that these terms can be used incorrectly. 

Theory X:

Theory X holds the belief that people are lazy and do not like work and that pressure must be exerted to get them to work effectively. It is also held that employees will only respond to monetary rewards as an incentive to perform above the level of that which is expected.

From a management point of view, autocratic (Theory X) managers like to retain most of their authority. They make decisions on their own and inform the workers, assuming that they will carry out the instructions. Autocratic managers are often called "authoritative" for this reason; they act as "authorities". This type of manager is highly tasked oriented, placing a great deal of concern towards getting the job done, with little concern for the worker's attitudes towards the manager's decision. This shows that autocratic managers lose ground in the work place, making way for leaders who share more authority and decision making with other members of the group.

Theory Y: 

The relationship in the work place between managers and workers. This theory assumes that people are creative at work. Workers responsible than Theory X workers, and they like to involve in the decision making process. Theory Y workers feel comfortable in their working environment which allows to be creative and become involved in organizational planning.

Some...