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110 PART 3: THE PERSONAL SIDE OF LEADERSHIP

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Theory X
Theory X assumptions about human nature, called Theory X and Theory Y, which represent
the assumption that people are
the assumption that people are two very different sets of attitudes about how to interact with and infl uence
basically lazy and not motivated
basically lazy and not motivated
to work and that they have
to work and that they have subordinates. Exhibit 4.2 explains the fundamental assumptions of Theory X and
a natural tendency to avoid
a natural tendency to avoid Theory Y.
responsibility
responsibility In general, Theory X reflects the assumption that people are basically lazy

and not motivated to work and that they have a natural tendency to avoid
Theory Y
Theory Y
the assumption that people do
the assumption that people do responsibility. Thus, a supervisor who subscribes to the assumptions of Theory X
not inherently dislike work and
not inherently dislike work and believes people must be coerced, controlled, directed, or threatened to get them to
will commit themselves willingly
will commit themselves willingly
to work that they care about put forth their best effort. In some circumstances, the supervisor may come across
to work that they care about
as bossy or overbearing, impatient with others, and unconcerned with people’s
feelings and problems. Referring back to Chapter 2, the Theory X leader would
likely be task-oriented and highly concerned with production rather than people.
Theory Y, on the other hand, is based on assumptions that people do not inher-
ently dislike work and will commit themselves willingly to work that they care
about. Theory Y also assumes that, under the right conditions, people will seek out
greater responsibility and will exercise imagination and creativity in the pursuit of
solutions to organizational problems. A leader who subscribes to the assumptions
of Theory Y does not believe people have to be coerced and controlled in order to
perform effectively. These leaders are more often people-oriented and concerned
with relationships, although some Theory Y leaders can also be task- or production-
oriented. McGregor believed Theory Y to be a more realistic and productive