Theory XY

By: Julia Spinner

Douglas McGregor

The theory XY was based off of Douglas Mortgagor's ideas. The theory X is being strict with the employees and theory Y is allowing employees freedom.

Example: Setting informal dress code but having strict guidelines for travel expenses.


XY is both but more decentralized. Decentralized is an organization where in the decision-making authority does not sit with a central figure or group. Some decentralized organizations empower all levels within the hierarchy with decision influence.

Pros and Cons of XY

Pros: workers are given trust to do their task, managers still give structure and guidance.

Cons: It is possibly not strict enough to keep complete order and trust.