The extent to which the employees feel motivated to put the best foot forward depends upon the policies adopted by the company in towards motivation.
Theory Y assumes that all employees have key roles to play in running the organization and management's role is to develop the potential in employees and help them to release that potential towards common goals.
The biggest drawback of McGregor's theory is that it sort of draws a dividing line. But in practice there's no such fine dividing line between type X and type Y. An organization cannot have all the people having similar capability and attitude towards work. Similarly all the students in a classroom cannot have similar calibre and IQ. Moreover a person who behaves in a particular manner today may come around and start taking things in different perspective once the manager takes him in confidence and makes him understand couple of things. Sometimes circumstances prevail upon the person and he starts behaving in a different way.
Motivation may be defined as the state of an individual's perspective which represents the strength of his/ her natural inclination to exert efforts towards some particular behaviour. How somebody makes use of his/ her efforts towards a goal is determined by the motivating/ de-motivating factors. ...