What are the practical applications of theory X and Theory Y to motivate employees?

Gauge the intrinsic motivation of your employees to determine whether McGregor's Theory X or Theory Y is more appropriate in your company. Theory X sets forth the premise that employees are inherently averse to working, and must be continually motivated by external sources. Theory Y sets forth the opposite premise, stating that employees are internally driven to succeed at projects that truly interest them. Put strict operational guidelines in place to guide front-line employees through their day-to-day routines if you feel Theory X is more appropriate in your company. Make sure employees understand that they are free to try new things and learn from their mistakes, while matching employees up with job tasks that truly interest them if you feel Theory Y is the way to go.