<P> People with a strong internal locus of control (personality) believe outcomes in their life develop primarily from their own actions and abilities, as a result they are task - oriented and spend little time building relationships among peers (Theory X). People with strong external locus of control believe outside factors are the primary influence on the outcomes in their life, therefore, they are relationship - oriented and focus on building relationships among peers (Theory Y). </P> <P> For example, when completing a project, an internal locus of control manager may use their rank as a factor to lead a workforce and focus on the group's ability and skills to achieve the best outcome, however, an external locus of control manager will use their relationship formed with a workforce to lead the group and focus on the workforce's morale and self - satisfaction to achieve the best result . </P> <P> McGregor's management theories closely relate to Maslow's hierarchy of needs, a model in which motivation is used to achieve higher level needs (social, esteem, and self - actualization) after basic physiological and safety needs are met . Maslow believes that higher level needs can be achieved through sense of achievement, having autonomy, having feelings of self - worth, and realizing one's potential . McGregor agreed with Maslow that self - actualization is the highest level human need that ought to be achieved, this reflects his bias for promoting Theory Y management which emphasizes self - motivation . With the adoption of Theory Y practices, managers can create an environment where workers can achieve their highest needs of esteem and self - actualization . Because of the close supervision Theory X managers adopt, these types of workers tend not to feel autonomous or have self - direction, therefore workers are typically not motivated to achieve higher level needs . </P>

Assumptions of theory x and y in the management process