One of the things I do on my job is to help franchisees with their employee issues. I've observed franchise owners who are, according to McGregor, theory X managers and some who are theory Y managers. Each theory provides insight into why people do what they do.
Theory X managers don't trust their employees and will watch them closely, micro-manage, and generally believe that people are out to cheat and get away with things. They're the typical "boss" because they believe people are out to cheat them. Theory Y managers on the other hand believe that trusting people is the best approach and that we should empower and reward people for risk taking and trying hard, even if it means failure. X managers hoard information and decision making is centralized. Y managers communicate quickly and honestly to everyone, according to McGregor.
The former President Truman also wondered why "when a leader is in the Democratic Party he's a boss; but when he's in the Republican Party he's a leader." There's a reason for everything Harry.
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