Most leaders and managers are aware of the importance of motivating their employees and creating an environment for them to perform at their best (Sennewald & Baillie, 2016). Yet, psychologists recognize that motivation is not straightforward. The motivational factors for each employee will not be the same across the entire organization (Sennewald & Baillie, 2016; Ryan & Deci, 2018). Douglas McGregor’s (1960) Theory X and Theory Y challenge the long-standing autocratic approach to leadership, offering several important insights into motivating and leading more effectively (Pearson, 2020). In this article, we dig deeper into McGregor’s approach and explore its potential to improve individual and organizational engagement and performance. Before you continue, we thought you might like to download our three Positive Leadership Exercises for free. These detailed, science-based exercises will help you or others adopt positive leadership practices and help organizations thrive.