Theory Y is a theory of human work motivation and management created by Douglas McGregor in the 1950s and developed further in the 1960s. It is one of two theories, the other being Theory X, that describe different assumptions about how managers view employees and how they motivate them. Theory Y is based on positive assumptions regarding the typical worker. Managers who follow Theory Y assume that employees are internally motivated, enjoy their job, and work to better themselves without a direct reward in return. They view their employees as one of the most valuable assets to the company, driving the internal workings of the corporation. Employees additionally tend to take full responsibility for their work and do not need close supervision to create a quality product. Theory Y managers gravitate towards relating to the worker on a more personal level, as opposed to a more conductive and teaching-based relationship. As a result, Theory Y followers may have a better relationship with their boss, creating a healthier atmosphere in the workplace. In comparison to Theory X, Theory Y incorporates a pseudo-democratic environment to the workforce.
Although Theory Y encompasses creativity and discussion, it does have limitations. While there is a more personal and individualistic feel, this leaves room for error in terms of consistency and uniformity. The workplace lacks unvarying rules and practices, which could potentially be detrimental to the quality standards of the product and strict guidelines of a given company.
