In this episode, we examine Douglas McGregor's most famous work, The Human Side of Enterprise, that proposed two "theories" encapsulating management assumptions about human behavior. His Theory X described the dominant thinking of the 1950s, where managers held a dim view of employees, who were assumed to be disinclined to work and had to be coerced into doing so. McGregor felt that Theory X led to adversarial relationships between managers and workers, resulting in poorer performance and an unhealthy environment. His Theory Y saw employees as wishing to be challenged and fulfilled if properly empowered and engaged.