An example of a Theory X working environment is McDonald's where employees follow a strict set of rules in order for the place to run smoothly. Example of Theory Y would be Google where employees are encouraged to participate and give their opinions. A hypothetical environment midway between X and Y might be there are rules set but employees are free to suggest changes. The manager allows feedback and is open to it but in the end he has final say. And the manager makes sure he motivates his employees and allows room for growth