Theory X & Theory Y
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McGregor put forth these assumptions, which he believed could lead to more effective management of people in the organization, under the rubric of Theory Y. The major propositions of Theory Y include the following:
1.Management is responsible for organizing the elements of productive enterprise-money, materials, equipment, and people in the interests of economic ends.
2.People are not by nature passive or resistant to organizational needs. They have become so as a result of experience in organizations.
3.The motivation, potential for development, capacity for assuming responsibility, and readiness to direct behavior toward organizational goals are all present in people-management does not put them there. It is a responsibility of management to make it possible for people to recognize and develop these human characteristics for themselves.
4.The essential task of management is to arrange organizational conditions and methods of operation so that people can achieve their own goals by directing their efforts toward organizational objectives.
Thus, Theory Y has at its core the assumption that the physical and