Shermerhorn and Chappell place Theory X and Theory Y in the human resource approaches.
During 1920s, an emphasis on the human side of the workplace began to establish its influence on management thinking (p. 266). Douglas McGregors Theory X and Theory Y, as well as Hawthorne studies, and Abraham Maslows theory of human needs, are major branches that emerged in this tradition. citation.
In The Human Side of Enterprise (1960) McGregor called a set of assumptions about human nature Theory X. He writes that the average human being inherently dislikes working. Because of this human characteristic of dislike of work, most people must be coerced, controlled, directed, and threatened with punishment to get them to put forth adequate effort toward the achievement of organizational objectives you do not need to place this in italics (McGregor, pp.33-34). After the recession of 1957-1958 these assumptions were openly adopted once more in some companies in the wave of the criticism against human relations. .
As the knowledge in the social science grew, some assumptions about human nature and human behavior in organizational setting were reformulated. This reformulation provided an improved basis for prediction and control of human behavior in industry (McGregor, pp.35). A few rather basic ideas about motivation were gradually accepted. They help to explain the inadequacies of Theory X cIn addition, they provide the basis for and entirely different theory of management (McGregor, pp.36). McGregor quotes Maslows theory of needs. Once physiological needs are satisfied, the man is not motivated to satisfy them. When physiological needs are satisfied, social needs become next motivators. After social needs are satisfied, the egoistic needs-- such as needs for self-esteem and self-confidence, needs for status, etc.-- motivate him/her. However, these needs do not usually appear until lower needs are satisfied.
