• Employees apply self-direction and self-control in the pursuit of organizational objectives without pressure, external control or threats of punishment.

• Loyalty towards achieving goals is also a function of rewards; associated with their achievement.

•    Employees often seek as well as accept responsibility

• The ability to use imagination, take initiatives and the creativity for solving organizational problems is extensively not narrowly strewn in the population.

• The intellectual talent of the average person is only partly utilized in the industry.

•  If there is freedom of work in the organization, it brings about increase in productivity.

This theory tends to be better than theory x, because it has a wider scope towards analyzing employee behavior and is better suited towards companies that use a much more flexible approach to cope with work management, rewards systems, employee management etc.

[adsense1]The x and y theory is basically about the management of organizations. Once managements understand that underestimating the potential of its human resources will lead to the organizations downfall then it will better identify and accept the information provided by social science researchers, such as displayed in the x and y theories assumptions. The theory ascertains that organizations need to invest time, effort and money to develop or improvise company managements. Also as shown in ‘theory y’ managers need to realize the true potential of their employees and give them room to grow and expand their work talent, for the benefit of themselves as well as the organizations. When putting the theories forward, McGregor realized that in most cases his theories are unrealizable in organizational practices, still he suggests that managers assume that: “Staff will contribute more to the organization if they are treated as responsible and valued employees. Also known as “the participative management style”, However one should remember that an organization that is using the y theory will have a different view of people/employees than that organization which is using theory X.