ABSTRACT
According to one scholarly analysis, performance reviews during Douglas McGregor's time "were mostly performed in a manner consistent with Theory X. That is, they were unilateral in nature and clearly represented a method of external control by the supervisor, manager and the organization". McGregor suggested that changing how workers were evaluated could positively reshape an entire organization. He introduced a method of appraisal characterized by a dialogue between different organizational levels, notably between lower and high-ranking managers and their employees, for the purpose of nurturing cooperation. McGregor argued that employees should have more control over their tasks and responsibilities, and that those responsibilities should be aligned with the organization's overall objectives. He was also an advocate of the Scanlon Plan, named after the steelworker and unionist Joseph Scanlon. The Scanlon Plan is a management philosophy that focuses on cost-reduction sharing and effective participation, consistent with Theory Y principles.
