What does the theory tell us about leadership? At least some of the research suggests that people are most motivated when they draw on their inner resources and that the best leaders understand this. The following recommendations provide more information about the research, together with a DVD to illustrate what this looks like in practice.

The Human Side of Enterprise
Douglas McGregor

McGregor’s XY Theory addresses one the most fundamental question leaders have to answer: are people self-motivated or do they need to be incentivised with “carrot and stick”? And what outcomes accrue from either approach?

The New Leaders: Transforming the Art of Leadership
Daniel Goleman, Richard Boyatzis and Annie McKee

The New Leaders is also rooted in research, describing a range of leadership styles which are used by the most effective leaders and highlighting those styles that are most likely to predict outstanding performance. Whilst this research is quite distinct (as far as I know) from McGregor’s own theory its findings are consistent with the XY Theory.

Punished by Rewards: The Trouble with Gold Stars, Incentive Plans, A’s, Praise and Other Bribes
Alfie Kohn

If you want to understand why the XY Theory works you need look no further than Alfie Kohn’s comprehensive review of research into human motivation. This highlights the fundamental truth that people are intrinsically rather than extrinsically motivated and describes the impact – as demonstrated by science – of seeking to use the carrot or stick to motivate.

Drive: The Surprising Truth About What Motivates Us
Daniel H. Pink

The question of intrinsic versus extrinsic motivation has also been reprised by Daniel Pink in this book. You can also see Pink talking on this subject at http://www.ted.com/talks/dan_pink_on_motivation.html.

Twelve O’Clock High (film)

If you can get past the war-time subject matter and the grainy black and white film, Twelve O’Clock High illustrates the predictive power of leadership – for better or for worse. If you like, this is what McGregor’s XY Theory looks like in practice.