What motivates you to work hard? According to Douglas McGregor, there are two categorizations of what motivates people: Theory X and Theory Y. Theory Y suggests that people are motivated for intrinsic reasons as opposed to extrinsic reasons. What this means is that they are working for reasons that go well beyond money and include reasons such as feeling satisfied with themsleves, increasing self esteem, helping others, etc. This is really an approach toward management and leadership. A manager that takes a Theory Y approach gives workers more freedom so that they can be independent, strive for success, and be more creative.