Distinguish between McGregor's theory "X" and theory "Y"

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Explain McGregor's X and Y Theory.

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Among the traditional theories of the motivation, one theory is that of McGregor. McGregor's Theory has two aspects known as Theory X and Theory Y.
Theory X—Theory X is the traditional theory of human behaviour. According to this theory, workers are inherently lazy, passive and unambitious. Therefore there is a need for control and direction over workers. People at work are to follow the directives of the management and cannot suggest what they think to be correct.
This theory is based on the following assumptions:
(1) The average worker in an organisation basically dislikes work and by nature, he is indolent and avoids work whenever possible.
(2) He is usually self-centered and he cares little for the organisational goals.
(3) He is usually lazy and has no ambition.
(4) He tries to avoid responsibility and only desires security.
(5) The average worker actually prefers to be directed, to being left on his own.
(6) Because of the human nature of dislike for work, most of the worker must be forced, controlled, directed, threatened punished to get them to put adequate efforts towards the achievement of organisational behaviour.
Thus, management should rely more on discipline, punishment, close supervision etc. Suitability of theory X in modern times—The theory X is not suitable in modern times. The theory supports authoritarian view which is quite unwarranted in the present economy. McGregor himself says that this theory does not represent the modern views on management. The assumptions of this theory about the human nature are negative in their approach. Management can gel results by following this theory but only in short run when workers respond to pressures and controls partly out of fear of consequences of not following orders. The recent researches conclude that the most effective way to get results is to work with people rather than through them. Further, governments of most of the countries have stressed that workers must be given an honorable place in the management; they must be regarded as partners in the organisation.

Theory Y—McGregor realised that theory X's assumptions about human behaviour are not always true. As such, he developed an alternate theory of human behaviour, called "Theory Y". This theory represents democratic approach. Theory Y indicates the individual and organisation both and highlights the need for improving and utilising inner motivation. The assumptions of this theory are as follows:
(a) The average human being does not inherently dislike work. Depending upon controllable conditions, work may be a source of satisfaction.
(b) External control and threat of punishment are not the only means for bringing about effort towards organisation objectives.
© Commitment to objectives is a function of the rewards associated with their achievement.
(d) The average human being learns not only to accept but to seek responsibility.
(e) Under conditions of modern industrial life, the intellectual potentialities of the average human being are only partially utilised.
The assumptions of theory Y suggest a new approach in management. It emphasises on the cooperative endeavour of management and employees. The attempt is to get maximum output with minimum amount of control and direction. Generally no conflict is visible between organisational goals and individual goals. Thus the attempts of employees which are in their best interests are also in the interests of organisation.
Both theories X and Y represent diametrically opposite views of human nature, theory "Y" has been advanced to suggest that human beings combine a bit of both according to circumstances. If we relate the above theories to Maslow's hierarchy of needs it may be said that theory X may be more applicable where a man is concerned with the lower level of needs. Once he has an adequate level of satisfaction of the basic physiological and safety needs, theory "Y" may be used for making an appeal ID a higher level needs. McGregor believes that recent researches in the behavioural sciences has shown that the assumptions of what "he calls theory Y may be more valid than the precepts of theory of X.

Applicability of Theory Y in India—Theory Y represents democratic or participative management. Theory Y emphasises integrative leadership where the manager will be more of a coach and counsellor, less of a commander, supervisor or a judge. Theory Y requires following conditions:
(1) People are literate, well informed, intelligent competent to participate in management with zeal and enthusiasm to satisfy their higher level wants particularly psychic wants.
(2) ' People have duly and reasonably satisfied their basic needs such as physiological needs, safety needs as well as social needs.
Above two conditions are prevalent in the affluent countries like the U.SA., U.K. and many other European countries. But in under-developed or developing economies like India, these conditions are not found in India. National income is low, standard of living is low, poverty is universal, population is too large, people are illiterate and ignorant, labour is unorganised. Under such conditions as long as the stomach is semi-empty, what is the use of igniting higher level wants. About 70 per cent population is busy in keeping the body and soul together and to solve the problem of physical survival. Financial incentives are naturally greatest motivators. Thus theory "Y" does not have any role to play in India today on a large scale. However, we are witnessing favourable conditions for theory "Y" management. Today, there are lakhs of people who need external discipline from a manager for getting things done through them. Till then, we have to tolerate theory "X" with suitable and necessary modification e.g.. recognition of human factor in industry, consultative management, use of non-financial incentives etc.
We may conclude that the assumptions of theory "Y" have not been accepted in full by the management in India. However, conditions favourable to Theory Y are emerging on the scene.