This
paper discusses the two theories of management formulated by Douglas McGregor. The paper explains that 'Theory Y' contends that employees strive for self-actualization and are thought to be eager to derive
satisfaction from
work. 'Theory X' is defined by the average
employee's inherent dislike of work and the necessity to encourage through rewards and punishment. The paper presents a study of two unnamed companies, in order to discover which type of manager, an X or a Y, would be more successful in achieving
productivity,
profitability, low absenteeism and staff retention for long periods.