Definition: The Theory X and Theory Y are the theories of motivation given by Douglas McGregor in 1960’s. These theories are based on the premise that management has to assemble all the factors of production, including human beings, to get the work done. McGregor believed that management can use either of the needs to motivate his employees, as grouped under theory X and theory Y. But however, the theory Y yields better results than the theory X, how? Let’s see.