The nature of people has been expressed in two sets of assumptions developed by
Dauglas Megragor and commonly known as "Theory X" and "Theory Y" Megragor
chosen these terms because he wanted natural terminology. Without any connotation
of being "good or bad".
THEORY X ASSUMPTIONS:
The traditional assumptions about the nature of people in theory X are:
1: Average human beings have an inherent dislike of work and will avoid it if they
can.
2: Because of this human nature or characteristic of dislike work most people must be
coerced, controlled, directed and threatened with punishment to get them to put forth
adequate effort toward the achievement of organizational objectives
3: Average human beings prefer to be directed wish to avoid responsibility have
relatively little ambition and want security above all
THEORY Y ASSUMPTIONS:
The assumption of theory Y of Mceneyor as follows:
1: the expenditure of physical effort and mental effort in work is as natural as play or
rest.
2: External control and the threat of punishment are not the only means for producing
effort toward organizational objectives. People will exercise self direction and self
control in the service of objectives to which they are committed.
3: The degree of commitment to objective is in proportion to the size of the rewards
associated with their achievements.
4: the capacity to exercise high degree of imagination, ingenuity and creativity in
solution of organizational problem is widely distributed in the population.
5: Average human being learns under proper conditions not only to accept
responsibility but also to seek it.
6: Under the conditions of modern industrial life, the intellectual potentialities of the
average human being are only partially utilized.
These two sets of assumptions are fundamentally different theory x is pessimistic,
static and rigid. Theory y is optimistic, dynamic and flexible with an emphasis an self
directions. There is little doubt that each set of assumption will effect managerial
functions and activities of managers.
CLARIFICATION OF THE THEORIES:
The following points will clarify some of the areas of misunderstanding and keep the
assumptions in proper perspective
Firstly: Theory X and theory Y are assumptions only. They are not suggestions for
managerial strategies. These assumptions are not based on research.
Secondly: theories X and Y do not imply hard or soft management. The hard
approach may produce resistance and the soft approach may result in jazzes fair
management
Thirdly: Theories X and Y are not to be viewed as being on and continuous scale,
with x and y on opposite extremes. They are not a matter of degree, they are
completely different view of people.
Fourthly: under theory Y, authority is seen as only way a manager exerts leadership
Fifthly: Different task and situation require a variety of approaches to management
