Evaluate the following statements about Douglas McGregor's Theory X and Theory Y:
I. Theory X assumes that employees inherently dislike work and will avoid it if possible, are motivated primarily by money and fear of punishment, and therefore require close supervision and authoritarian management to perform.
II. Theory Y assumes that employees can find work as natural as rest or play when the conditions are right, are capable of self-direction and self-control, seek responsibility, and can exercise creativity and problem-solving ability when properly motivated. Which of the above is/are correct?

Both statements correctly describe McGregor's Theory X and Theory Y from his 1960 book 'The Human Side of Enterprise'. Theory X represents the traditional, pessimistic view of workers: people dislike work, are lazy, avoid responsibility, prefer to be directed, and must be coerced, controlled, or threatened to achieve organisational goals. Managers holding Theory X assumptions tend to adopt autocratic, directive management styles. Theory Y represents a more optimistic, humanistic view: under the right conditions, people find work meaningful and satisfying, exercise self-direction, seek responsibility, and are capable of creativity. Managers with Theory Y assumptions tend to adopt participative, delegative styles and focus on creating enabling conditions. McGregor did not advocate that one is true and the other false — he argued that management's assumptions about workers tend to become self-fulfilling prophecies.