AIP 5.19 Performance Measures, Responsibilities and Self Interest LO 1, 3

A textbook on organization theory says:

Drawing upon the writings of Maslow, McGregor presented his Theory X-Theory

Y dichotomy to describe two differing conceptions of human behavior. Theory X

assumptions held that people are inherently lazy, they dislike work, and that they

will avoid it whenever possible. Leaders who act on Theory X premises are prone

to controlling their subordinates through coercion, punishment, and the use of

financial rewards; the use of external controls is necessary, as most human beings

are thought to be incapable of self-direction and assuming responsibility. In

contrast, Theory Y is based on the assumption that work can be enjoyable and that

people will work hard and assume responsibility if they are given the opportunity

to achieve personal goals at the same time.

Question 1:

Critically analyze Theory X-Theory Y.