- In The Human Side of Enterprise, Douglas McGregor stated that managers who use the carrot-and-stick approach held a set of propositions he called Theory X. The average worker does as little as possible, lacks ambition, dislikes responsibility, and prefers to be led, is inherently self-centered, indifferent to organizational needs, is by nature resistant to change, is gullible and not very bright. 

He suggested that workers treated as if they fitted Theory X were unlikely to perform effectively. And he suggested that a new set of propositions should be considered. He called these Theory Y. People enjoy work as naturally as they enjoy play. Most people are capable of exercising self-control and self-discipline if they are motivated to achieve a target. The average person will not only accept but will actively seek responsibility. Many people have the imagination, ingenuity, and creativity to help solve problems in the organization. 

The capacity of the average worker is only partially utilized. McGregor's ideas explained why and how people can be motivated to a higher level.