Comparative Analysis of Theory X, Theory Y, Theory Z, and Theory A for Managing People and Performance

Organizational Behaviour in the context of people management consists of several theories in which Theory X, Theory Y, Theory Z are the newly introduced. Theory X and Y were created and developed by Douglas McGregor in the 1960s. Theory X says that the average human being is lazy and self-centred, lacks ambition, dislikes change, and longs to be told what to do. Theory Y maintains that human beings are active rather than passive shapers of themselves and of their environment. They long to grow and assume responsibility. The best way to manage them, is to manage as little as possible. Theory Z of William Ouchi focused on increasing employee loyalty to the company by providing a job for life with a strong focus on the wellbeing of the employee, both on and off the job. The above three theories were developed based on research conducted in various production related organizations in 20th century. In 21st century, due to changes in business models, automation of production process, changes in technology & business environment, and changes in people perception, organizations are transforming into global entities - a new theory in organizational behaviour called Theory A (Theory of Accountability) has been developed. In this paper, we have made an attempt to compare these four human motivational theories. A model framework for implementation of theory A in an organization is also discussed. The paper also consider the impact of theory A on modern organizational performance.