Douglas McGregor's Theory X and Theory Y describe two approaches to managing people. Theory X assumes workers dislike work and must be closely controlled, while Theory Y assumes workers can be self-motivated and exercise self-control. The document also discusses Maslow's hierarchy of needs, which identifies physiological, safety, love, esteem, and self-actualization needs that motivate human behavior. Additionally, transactional analysis identifies three ego states - parent, adult, and child - that influence how people interact and communicate.

1. Extra Credit
Submitted In Partial Fulfillment of the Requirements of Organizational
Behavior,
MGMT 344.002, Mon. Wed. Fri. at 11:00AM, Spring 2015
2118469
May 21, 2015
Prof. R. Lowery

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Douglas McGregor’s Theory X and Y are two fundamental approaches to managing people.
Many managersand people in the business world believe that theory X generally yields poor results,
ergo theory Y yields better performance and results. These theories are referred to the field of
management and motivation and are a valid basic principle in which to help develop positive
managementstyles andtechniques. McGregor’s ideas significantly relate to modern understanding of
the psychologicalcontractas well. These theoriesremain centralto improvingorganizationalbehavior,
development, and organizational culture. (Chapman, 2011)
Theory X is also known as the “authoritarianmanagement” style. X-Type organizations tend to be
top heavy, meaningthatmanagers andsupervisorsare requiredatevery step to control workers. There
is little delegation of authority and control remains firmly centralized. These workers are usually the
minority in the business world. Under this theory the primary ideas are as follows:
 The average person dislikes work and will avoid it whenever they can
 Most people must be forced with the threat of punishment to work towards organizational
objectives
 Need to be enticed to produce results/ need an incentive to do their best
 He average person prefers to be directed, avoid responsibility, is relatively unambitious, and
wants security above all else
 Has to be supervised at every step with controls put in place
Theory Y is also known as the “participative management” style. This is a more participative
management style, which tends to be more widely applicable. In a Y-Type organization, people at
lower levels of the organization are involved in decision-making and have more responsibility in their
field. It is also more decentralized. The primary ideas under this theory are as follows:

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 Take responsibility and are motivated to fulfill the goals they are given
 Seek and accept responsibility and do not need much direction
 Consider work as a natural part of life and solve problems imaginatively
 Workers apply self-control and direction in pursuit of organizational objectives
 The capacity to use a high degree of imagination, ingenuity and creativity in solving
organizational problems
Both of these theories focus on motivation,managementstyle and control, work organization,
rewards and appraisals, and application. Where theory X has a lack of motivation, theory Y has an
abundance of motivation. Where theory X has centralized authority, theory Y is participative and
decentralized. Where theory X has specialized and repetitive work, theory Y has a wider area of skill
and knowledge. Where theoryX work on a “carrot and stick”basis, theoryY has regular andimportant
appraisals becausethey deserve it. (Eyre, 2015) When looking at them this way, it is easy to see why
they have such different application and acceptance rates.
Another setof ideas thatdrive theories in management is Maslow’s Hierarchy of Needs. This
theory also remains valid today for understanding human motivation, management training, and
personal development. This theory can be looked at as the prequel to McGregor’s Theory X, Y.
Maslow’s ideas provide a workplace environment that encourages and enables employees to fulfill
their own unique potential. (Bassett, 2009) This five-stage model is often put into a pyramid diagram.
These are the stages from top to bottom:
 Self-actualization: Personal growth and fulfillment
 Realizing personal potential, self-fulfillment, seeking personal growth and peak
experiences. Less concerned with the opinions of others and more interested in
fulfilling their potential.

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 Esteem needs: Achievement, status, responsibility, reputation
 Self-esteem, achievement, mastery, independence, status, dominance, prestige,
managerial responsibility
 After the first need has been satisfied, esteem needs becomes increasingly important
 Belongingness and Love needs/ Social needs: Family, affection, relationships, work groups
 These needs include feeling belonging, love and affection. Relationships such as
friendships, romantic attachments, family, andcompanionship are emphasized feeling
of acceptance in this tier
 Maslow describes these needs as less basic than psychological and security needs
 Safety/ Security needs: Protection, security, order, law, limits, stability
 Desire for steady employment, health care, safe neighborhoods, shelter from
environment
 Security needs are important for survival but they are not as demanding as
physiological needs
 Biological and Physiological needs: Basic life needs: Air, food, drink, shelter, warmth, sex,
sleep
 These include the most basic human needs
 Maslow believed thatthese needs are the most instinctive in the hierarchy because all
needs become secondary until these physiological needs are met
This hierarchy is most often displayed as a pyramid in order to show what is the highest to
lowest in human necessity. The lowest levels of the pyramid are made up of the most basic needs,
while the more complex needs are located at the top of the pyramid. Needs at the bottom of the
pyramid are basic physicalrequirements including the need for food, water, sleep, and warmth. Once
these lower-levelneeds have been met, people can move on to the next level of needs, which are for
safety and security. (McLeod, 2007)

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As people progress up the pyramid, needs becomeincreasinglypsychologicalandsocial. Soon,
the need for love, friendship, and intimacy become important. Further up the pyramid, the need for
personalesteem and feelings of accomplishmenttake priority. Like Carl Rogers, Maslow emphasized
the importance of self-actualization, which is a process of growing anddeveloping as a person in order
to achieve individual potential. (Cherry, 2014)
Transaction analysis is also important in business and management. The key to this
methodology is transaction, which Berne defines as the fundamental unit of social intercourse and
stroke, which is the fundamentalunitof socialaction. (Stewart& Joines, 1987) It is a model of people
and relationships thatwas developed in the 1960’s by Dr. Eric Berne. It is based on two notions, first
thatwe have three “ego-states” to our personality andsecondlythatthese have conversations with one
another. Transaction analysis is very commonly used in therapy and psychology.
The three categories of ego-states are the parent, adult, andchild egos.They are allsaid to have
different directions, manners, and stimulus responses.
 Parent: Behaviors, thoughts and feelings, copied from parents or parent figures.
 The parents represents a massive collection of recordings in the brain if external vents
experienced or perceived in approximately the first five years of life
 It is said to be two forms of a parent:
 The nurturing parentis caring and concernedand may oftenappear as a mother
figure. They seek to keep the child contended, offering a safe haven and
unconditional love.
 The controlling parent tries to make the child do as the parents wants them to
do in such a way that seems to transfer values or beliefs.
 Taught Self Concept

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 Adult: Behaviors, thoughts and feelings which are direct responses to the here and now
 The adultin us is the “grown up” rationalpersonwho talks reasonable and assertively,
neither trying to control not reacting aggressively towards the others.
 The adult is comfortable with their self and is commonly said to be out “ideal self”
 Learned Self Concept
 Child: Behaviors, thoughts and feelings replayed from childhood
 The child represents the recordings in the brain of internal events associated with
external events the child perceives. The child is stored in the emotions and feelings
which accompanied external events.
 There are three forms of the child:
 The natural is largely non self-aware and is characterized by the non-speech
noises they make. They like playing and are open and vulnerable
 The little professor is the curious and exploring child who is always trying out
new stuff.
 The adaptive child reacts to the world around them, either changing themselves
to fit in or rebelling against the forces they feel
 Felt Self Concept
 (Berne, 1964)
 (Harris, 1967)

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Bibliography
Bassett,M. (2009, August). AbrahamMaslow'sHierarchy of Needs.RetrievedMay21, 2015, from
http://www.businessballs.com/:http://www.businessballs.com/maslow.htm
Berne,E. (1964). Games PeoplePlay:The Psychology of Human Relationships. NewYorkCity:Balantine
Books.
Chapman,A.(2011, October). DouglasMcGregor'sXY Theory.RetrievedMay21, 2015, from
http://www.businessballs.com/:http://www.businessballs.com/mcgregor.htm
Cherry,K.(2014, July). Hierarchy of Needs.RetrievedMay21, 2015, from http://psychology.about.com/:
http://psychology.about.com/od/theoriesofpersonality/a/hierarchyneeds.htm
Eyre,E. (2015, March). Theory X and Theory Y. RetrievedMay21, 2015, from
http://www.mindtools.com/:http://www.mindtools.com/pages/article/newLDR_74.htm
Harris,T. A.(1967). I'm OK,You're OK. New York City:AvonBooks.
McLeod, S.(2007). Maslow'sHierarchy of Needs.RetrievedMay21, 2015, from
http://www.simplypsychology.org/:http://www.simplypsychology.org/maslow.html
Stewart,I.,& Joines,V.(1987). TA Today:A New Introduction to TransactionalAnalysis. ChapelHill:
Lifespace Publishing.
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Extra Credit
Submitted In Partial Fulfillment of the Requirements of Organizational
Behavior,
MGMT 344.002, Mon. Wed. Fri. at 11:00AM, Spring 2015
Zhané Thomas
2118469
May 21, 2015
Prof. R. Lowery