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Theory X: sees individuals as oriented to material rewards and thus are prone to "free ride" on the efforts of other; thus to ensure that individuals are fairly rewarded, measurements of behaviours must be carefully implemented, this includes sanctioning unproductive behaviours on top of rewarding the favourable

Theory Y: believes that most individually want to do a good job and that the main obstacle in their way is designing reward system to avoid misalignments that rewards behaviour that are not (perverse incentive or "hoping for A while paying B")

  • An example of this is an organization that assigns work in teams but bases evaluation and rewards on individual performance
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Q: What is the theory of x and y?
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