McGregor's theories look at the different ways managers have to manage different types of people. There are two theories: theory X and theory Y.

Theory X

• Workers are only motivated by one thing - money!
• They are selfish, lazy and hate work.
• They need to be closely controlled and directed.

Theory Y

• Workers are motivated by many different factors apart from money.
• They enjoy their work.
• They will happily take on responsibility and make decisions for the business.