Theory "Y"

Poster by Erik Stumpf

Theory "Y" was created by Douglas McGregor

This theory states that people find work to be satisfying, the people are creative and have self motivation, are responsible for doing their work, and have self control while containing the physical and mental effort to do necessary work.

This theory is DECENTRALIZED

The Managers Perspective

hey communicate openly with employees, develop a trusting relationship with employees. and will create an environment where the employees can develop and use their abilities.

The Employee perspective

Employees will self govern themselves and will direct themselves towards an important goal.

Pros & Cons


  • Relaxed environment, this allows for new ideas to come more "naturally".
  • Workers are encouraged to think "Outside the Box".
  • New opportunities open up more opportunities for new revenue to increase.


  • Some employees lack the motivation for this work style.
  • Some employees aren't "creative" enough for this work style, and cannot handle the freedom of thought.
  • Some employees need a strict schedule and set of guidelines.

Some Examples:

  1. Artists
  2. Musicians
  3. Performers