Douglas McGregor developed Theory X and Theory Y to challenge classical management perspectives. Theory X assumes that people inherently dislike work and must be coerced into working. Theory Y assumes that people can exercise self-direction and creativity at work, and that their intellectual potential is only partially utilized. Theory Y argues that organizations should take advantage of all employees' intellect and imagination rather than relying on external control. While some companies still use Theory X, most now employ Theory Y's more positive view of human motivation.