ABSTRACT

In The Human Side of Enterprise, Douglas McGregor contrasts two opposing types of management. Under Theory X, managers assume that employees want to do as little work as possible, and that a system of strict control and rewards is needed. In contrast, Theory Y management recognizes that employees need growth, learning, responsibility, and creativity to be good workers. McGregor is in favor of Theory Y, arguing that it increases efficiency and productivity. The economic recession in the United States, dubbed the "Great Recession", illustrates the significance of McGregor's work. Twenty-first century companies have diverse workforces: their employees and managers come from a wide range of places and cultures. This means that organizations may differ from department to department, and varying styles of management may be effective for different employees.