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Douglas McGregor's theory took inspiration from the Hawthorne studies by the Western Electric Company in the 1920s, in addition to Abraham Maslow's Theory of Human Needs.

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Theory X assumes that people are not satisfied with and lack the ambition to work, in addition to being resistant to change of any kind. Due to their irresponsibility, they prefer to be led by someone else.

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Theory X is much less common in the workplace today, due to its lack of encouraging innovation.

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In 1981, Japanese management professor William Ouchi published Theory Z: How American Management Can Meet the Japanese Challenge, which blended typical business management practices prominent in the western world with those commonly used in Japan.

Theory Z assumes that each employee seeks to build cooperative, sometimes intimate working relationships with their partners. Employees seek balance between work and daily life, and thus seek a workplace that heavily values family, culture and tradition. To them, working hard is a moral obligation, and should be trusted to do their job to their upmost ability.

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Theory Y assumes that people are satisfied to work. They are willing to be responsible for their actions, and can work for themselves. They create a self-fulfilling prophecy by confirming expectations.

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Theory Y is common in the workplace today, as more and more corporations are becoming decentralized.

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Most managers tend to use a mixture of both Theory X and Theory Y; sometimes valuing one over the other.

Managers who prefer Theory X usually micromanage their employees (close observation and control, at the cost of workers' freedom). Theory X is effective for helping and guiding new employees to get used to their job in the workplace, or for dealing with a crisis that could have adverse effects on your company's PR, and is at its most efficient for larger, target-driven teams.

Managers who prefer Theory Y usually take a hands-off approach. Theory Y is effective when managing more experienced employees, who work based off their own initiative., and is at its most efficient for flatter teams.

Managers who prefer Theory Z value a strong company philisophy and strive to give their company a healthy working culture. Theory Z is at its most efficient for employees who are 'generalist' - they have a greater responsibility in decision-making.

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Ineffective use of Theory X and Theory Y has many consequences on both the morale of your employees and the productivity of the organization.

Theory X can be restrictive, and if used improperly can demotivate employees and cause a large staff turnover. Micromanagement can lead to a leader becoming overly controlling, and even manipulative.

Theory Y, while beneficial for the freedom of employees, can lead to them straying too far from their given objectives, and losing their overall focus. Those who are not motivated are more likely to using their given time to shirk working.

Theory Z has its limitations - not every organization and/or employee can make commitments to their employment, and decision-making focused on parcipiation can not be effective when workers are not willing to cooperate.

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In practise, Theory X IS NOT MORE EFFECTIVE THAN Theory Y, yet this also applies to the opposite - Theory Y IS NOT MORE EFFECTIVE THAN Theory X - Both theories actively negate each others' assumptions.

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https://drive.google.com/file/d/1niQR1vLEoVObSxE_RApzXYnZ8f7mAAfz/view?usp=sharing

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Juneja, Prachi. “Theory X and Theory Y.” Management Study Guide, www.managementstudyguide.com/theory-x-y-motivation.htm.

Lumen Learning. “Theory X, Theory Y, and Theory Z | Introduction to Business [Deprecated].” Lumen Learning, courses.lumenlearning.com/wmopen-introbusiness/chapter/reading-douglas-mcgregors-theory-x-and-theory-y-2.

Nadine. “McGregor’s Theory X and Theory Y Explained.” Management 3.0, 4 Jan. 2022, management30.com/blog/theory-x-y.

“Theory X and Theory Y: Understanding People’s Motivations.” Mind Tools, www.mindtools.com/pages/article/newLDR_74.htm.