ABSTRACT
Whether ‘Theory X’ or Theory Y’ – the two most widely discussed theories of the behaviour of people at work – is valid, the manager can no longer rely on Theory X, that is on the stick of fear or the carrot of material incentives. In particular, neither will work if applied to the new breed of young manual workers or to knowledge workers. But Theory Y also has severe limitations and drawbacks. How can we then replace the old Theory X management ? Psychological manipulation – that is, Theory X masquerading as Theory Y – will not work. But what does ?
