What is THEORY X AND THEORY Y?

2 sets of assumptions by managers about employees and which can be self-fulfilling prophecies. Theory X assumes that (1) people won’t like work and will avoid if possible and (2) they need to be coerced , threatened or controlled to keep working, (3) no or little ambition, avoid responsibility, choose security above other things. Theory Y (1) Mental and physical effort is natural and people will be satisfied, (2) use own control and motivation to reach goals, (3) seek or learn to accept responsibility and (4) full potential is not used.

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