Theory X and Theory Y are two theories developed by Douglas M. McGregor. They are often compared and contrasted, however, for the purposes of this article the focus will be primarily on Theory Y. It is important to note the differences between the two theories to understand why Theory Y is considered superior. McGregor was intrigued by what motivated people to work hard and how leaders could foster their motivation (Bobic & Davis, 2003, p. 241). He also wanted to know why so many workers were dissatisfied with their jobs (McGregor, 1060, pp. 22-24, 54). McGregor wrote The Human Side of Enterprise (1960) in which he discussed his perspectives on management, according to which “management was more than simply giving orders and forcing obedience; it was a careful balance between the needs of the organization and those of individuals” (McGregor 1960, 53-55). He based his new theories on the idea of ​​a classification of needs developed by Abraham Maslow. The foundation of Maslow's hierarchy or pyramid is basic physiological, then safety and security, belonging, esteem and self-actualization (Maslow, 1970). Maslow observed the work environment and purposeful employees are primarily concerned with the culture and structure of the workplace that meets their needs (Bobic and Davis, 2003, p. 242). McGregor applied these needs to the work environment in the mid to late 1950s (Bobic and Davis, 2003, p. 240). The result was a new era of management theory and practice that harnessed the creative potential of the workforce (Bobic and Davis, 2003, p. 241). McGregor said that “behind every managerial decision or action are assumptions about human nature and human behavior.” (The Economist Newspaper Limited, 2014, paragraph 7). Whether they are conscious or not... middle of paper ......08). Here we go: theory meets generation y. Business Strategy Review, 19(4), 4-10. doi:10.1111/j.1467-8616.2008.00556.xBobic, MP & Davis, W. (2003). A Kind Word for Theory X: Or Why So Many Cutting-Edge Management Techniques Fail Quickly. Journal of Public Administration Research and Theory, 13(3), 239.BusinessDictionary.com. (2014). Definition of theory x and theory y. Retrieved from http://www.businessdictionary.com/definition/theory-X-and-theory-Y.htmlColorado State University-Global Campus. (2014). Module 3-Management and management theory [Blackboard online course]. In ORG 502 – Effective Organizations: Theory and Practice (p. ____). Greenwood Village, CO: Victoria Figiel. Maslow, A. (1970). Motivation and personality (2nd ed.). New York: Harper & Row. The Economist Newspaper Limited. (2014). Guru Douglas McGregor. Retrieved from http://www.economist.com/node/12366698