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 main focus will be on Theory Y. It is important to note the differences between the two theories to understand why Theory Y is believed to be superior. McGregor was intrigued by what motivates people to work hard and how leaders could foster their motivation (Bobic and Davis, 2003, p. 241). He also wanted to know why so many workers were unhappy with their jobs (McGregor, 1060, p. 22-24, 54). McGregor wrote The Human Side of Enterprise (1960) where he discussed his perspectives on management which “was that management was more than simply giving orders and forcing obedience; it was a careful balancing of the needs of the organization with the needs 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 the basic physiological one, therefore security, belonging, esteem and self-realization (Maslow, 1970). Maslow observed the work environment and determined that employees are primarily concerned with whether the workplace culture and structure meet their needs (Bobic & Davis, 2003, p. 242). McGregor applied these demands to the work environment in the mid-to-late 1950s (Bobic & 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 stated that “behind every managerial decision or action there are assumptions about human nature and human behavior.” (The Economist Newspaper Limited, 2014, para.7). Whether or not they are at war... middle of paper......08). Game Start: Theory Y meets Generation Y. Business Strategy Review, 19(4), 4-10. doi:10.1111/j.1467-8616.2008.00556.xBobic, M. P., & Davis, W. (2003). A kind word for theory x: or why so many new 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 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