Douglas McGregor (1960) proposed the theory based on two distinct groups of views as X and Y. Theory X is based on the assumptions as employees dislike work, and they do not like to take responsibility and must be directed or even forced to exhibit performance. They were motivated only by money or other material gains. On the other hand, Theory Y assumes that employees can enjoy working and see it as natural as fun. They like to take responsibility and try to do their best. Employees can be motivated by more humanistic initiatives like recognition and development. Luthans (2011, p.11) stated in his book as “companies are coming to realize that knowledge workers, who have been identified as the creators of future wealth, thrive only under Theory Y. Theory X is becoming extinct”. The correct answer is Choice B.