X Y Theory Of Motivation. Theory x and theory y was created and developed by douglas mcgregor at the mit sloan school of management in the 1960s. Theory x, y & z of employee motivation have been used in human resource management, organizational behavior analysis, and organizational development.
Douglas mcgregor spent the end of the 1950’s and the early 1960’s working on his motivation theory. Leaders must respond with a participative style of management. They are prevalently known as ‘theory x’ and ‘theory y’.