McGregor (1960) described two points of view on human motivation: Theory X and Y. Theory to work and even try to avoid it, that people have no ambition, are resistant to change, are not particularly intelligent and work only for money and security. The goal of management is to direct the efforts of employees, motivating them, controlling them and changing their behavior to ensure that they behave in line with the needs and objectives of the organization. In contrast, Theory Y argues that work can be a breeze. People are committed, can work independently and still achieve their work goals, act responsibly and are creative in fulfilling their tasks and dealing with problems. In principle, theories X and Y are managerial theories, they reflect the propositions that managers have about their subordinates. Typical Theory X management is the traditional management style. Table 1 summarizes the assumptions underlying both theories. In this essay Theories X and Y are perceived as two ends of a continuum, meaning that each individual has both Theory X and Y motivation attitudes, but the extent to which these theories prevail within individuals differs. As described in the subsequently developed economic agency theory, management guided by the assumptions of theory X (management X) must control behavior very strictly. The agent and principal have a conflict of interest and therefore the agent's agency is required. Management guided by the assumptions of theory Y (management Y) would argue that employees must be motivated by providing opportunities to satisfy their personal needs and trusting the agent to correctly fulfill their tasks. Theor...... middle of paper ... ...re financial punishment and loss of reputation for the bank and their own dismissal. In this case the manager should have taken responsibility for preventing subordinates from making risky decisions. Opportunistic Behavior We have seen numerous scandals in recent times which demonstrate that people with good intentions will be tempted to display opportunistic behaviour. At some point they will succumb to this temptation by enriching themselves at the expense of the organization. These behaviors will be familiar to all of us and can be discovered at all organizational levels. Imagine the situation at the end of a 10-hour workday that you and your team members want to go home and the last client enters the office. everyone wants to avoid giving the customer the attention they would normally provide. Works Cited McGregor (1960) Johnson (2002) Johnson (1972)