Theory X & Y exemplified the view of employee motivation and the perspective that employees are motivated by their social environment and not money. Theory X also known as the authoritarian management style has a pessimistic point of view on workers and says that the average person dislikes work and will avoid it if possible, therefore people must be forced with threat or punishment to work towards organizational goals. Theory X also states that the average person prefers to be directed, avoids responsibility, is un-ambitious, and desires security above all else.
Theory Y, which is known as the participative management style leans towards the optimistic perspective of workers. Theory Y says that employees find effort in work is as natural as play; employees will apply self-control and direction in the pursuit of organizational goals without threat of punishment. Employees usually accept and seek responsibility; they have a higher degree of imagination, ingenuity and creativity in solving problems within the organization.
I believe Theory Y is more effective. A theory X manager tends to be intolerant, aloof and arrogant, elitist, short tempered, shouts, makes threats, never asks only demands, does not thank employees or give praise. These are just some of the better characteristics of a Theory X manager. These traits cause employees to be unhappy and miserable at their jobs, causing moral, loyalty, and productivity to go down.