Leadership: Theory X vs. Theory Y Attitudes

In leadership, it is important to have an internal awareness of how you naturally tend to perceive others. To that end, it is imperative to understand the concepts of both Theory X and Theory Y attitudes.

Theory X and Theory Y attitudes are two contrasting approaches to leadership described by Douglas McGregor in his book The Human Side of Enterprise. These theories represent two different assumptions about human nature and behavior in the workplace.

Theory X attitude is used to describe outlooks held by leaders that are generally negative or critical in their view of people. Theory X leaders tend to believe that their employees dislike work and avoid it if they can, are lazy and lack ambition, or are inherently self-centered and motivated by external rewards. 

In contrast, Theory Y leaders have a natural tendency to assume the best in others. These leaders believe employees are self-motivated, responsible, and capable of self-direction if given the right conditions.

The type of attitude that leaders naturally possess could manifest in the following ways:

Leadership Style:

Theory X leaders may subscribe to the “list maker, list taker” approach. They feel as if the success of an employee or team is made through the leader’s distribution of tasks and the team’s completion of these tasks.

Theory Y leaders are more likely to empower their employees to make decisions in their day-to-day work. Theory Y leaders accomplish this by giving employees the autonomy and trust they need to make choices that are best for the organization.

Organizational Culture:

A leader who aligns with Theory X will often create a culture based on the corporate hierarchy. In short, positional power in the organization matters more than the contributions you make to the team.

Theory Y leaders tend to foster a more collaborative, innovative, and employee-centered culture. Leaders who support the Theory Y approach understand how their employees’ abilities and contributions are meaningful to the organization.

Employee Engagement:

Theory X leadership styles often result in disengagement, resentment, and turnover. Employees on Theory X teams often feel controlled, micromanaged, and undervalued.

Theory Y leadership will result in higher levels of employee engagement because employees will feel a sense of trust and autonomy. In addition, employees often better understand that their performance has an impact on the company’s purpose, mission, and values.

By having the emotional intelligence to identify their natural leadership attitude, leaders obtain the ability to identify their own deficiencies and course-correct where necessary. Through personal reflection, leaders can improve employee satisfaction, engagement, and overall organizational performance.

If you are interested in diving deeper into leadership styles and improving your company and employee experience through shifting culture and mindset, The Encompass Group would love to have a conversation. Please reach out to hello@theencompassgroup.com to set up time to discuss.