McGregor presented a dichotomy of management called Theory X and Theory Y. Underlying McGregorâs approach was his understanding that Theory X is quite common and that Theory Y is a preferred foundation for workplace management. In what ways, if any, is Theory Y a superior approach to management? What assumptions does each theory make about the psychology of motivation? Are there organizational circumstances where Theory X would be appropriate? What are the unique psychological perspectives an industrial-organizational psychologist might consider when applying Theory X and Theory Y?