Leading Organizational Learning

and Theory Y, two very different sets of assumptions about the
nature of people. He asked leaders to compare their beliefs to the
fictitious beliefs outlined in X and Y. His queries remain highly
relevant today:

• Are people naturally motivated to work, or must they be
  given incentives to get them to give their best?


• Is it natural for people to seek rewards for the least amount of
  effort, or are demotivated workers a symptom of stifling orga-
  nizational and leadership practices?


• Can we realistically expect people to act unemotionally on
  the job, or are emotional reactions part of the human spirit
  that can be suppressed but never left behind?

Theory X and Theory Y are still recognizable terms for most.
However, McGregor’s hopes for these constructs were quickly frus-
trated decades ago. Discussions of X and Y devolved into conver-
sations of style. In fact, most people in the 1960s, like most today,
think that a Theory X leader has authoritative tendencies and that
a Theory Y leader has a more democratic style. This bastardization
of his ideas frustrated McGregor. He was hopeful, however, that
a time would come when it would be necessary for leaders to
challenge who they are. Fifty years later, the time is near. The
major business crises of the recent past are forcing just such a
reevaluation.

We Are What We Choose: Authenticity

Is the Clear Choice

As Abraham Maslow pointed out, “A musician must make music;
and an artist must paint; and a poet must write; if he is to be ulti-
mately at peace with himself. What a man can be, he must be.”^2
Even though our willingness and ability to challenge our lead-
ership mind-set has not gathered significant momentum in the five
decades since McGregor, the need for us to take action is more

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