ABSTRACT
Douglas McGregor writes that Theory X is based on incentives: "The practical logic of incentives is that people want money, and that they will work harder to get more of it". As McGregor observes: "Theory X offers management an easy rationalization for ineffective organizational performance". Theory Y assumes that employees can grow and develop in the workplace, and that management should explore the potential of human resources, and selectively adapt strategies to individual employees. Theory Y suggests that employees have needs "that relate to reputations: needs for status, for recognition, for appreciation, for the deserved respect of one's fellows". Theory Y tries to bring management practices up to date via contemporary notions of human behavior. McGregor wanted his theories to make a difference in both the scholarly field of management science, and the real world of management. McGregor came to be regarded as one of the significant contributors to the field of organizational development.
