Financial literacy is clearly a major element in the area of Financial Wellness. Several years ago we came to the realization that there are certain Organizational Development concepts that needed consideration. Douglas McGregor’s famous distinction between Theory X and Theory Y in his hugely influential 1960 book, The Human Side of Enterprise (McGraw-Hill) was a key component in our thinking.
The most potent practical application of Theory Y appeared in Dr. W. Edwards Deming’s 1992 book, System of Profound Knowledge. He successfully highlighted for us the significance of Theory Y as he referred to the process of converting the extrinsic rewards of work and career to intrinsic rewards that cause employee’s efforts to align with corporate business goals for a more successful cultural change.
Click here for a more in depth discussion that connects the above notions to the need for Financial Literacy.