Step 1: Define Theory X and Theory Y. Theory X and Theory Y are theories of human motivation and management developed by Douglas McGregor at the MIT Sloan School of Management in the 1960s. \[\begin{array}{rl} \bullet & \text{Theory X: Assumes that employees are inherently lazy, dislike work, and must be coerced and controlled to perform. It's an authoritarian management style.} \\ \bullet & \text{Theory Y: Assumes that employees are self-motivated, enjoy their work, and can be creative and responsible if given the right environment. It's a participative management style.} \\ \end{array}\]
Step 2: Determine the underlying goal. Both theories, despite their opposite assumptions, are fundamentally about how managers can best motivate employees to achieve organizational goals. McGregor proposed Theory Y as a more effective path to achieving high performance than the traditional Theory X approach. The core issue they address is the "Quest for high performance".
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