<p>Employee motivation is the key issue of all organizations. This study aims is to analyze the current state of management styles in universities according McGregor’s Theory X and Y, and to identify which theory is more suitable for enhancing of faculty and staff motivation and productivity. The study conducted the mixed-methods sequential explanatory research design in which the gathering of qualitative data follows quantitative data analysis. Findings prove that Theory Y management is more effective for creating motivated and productive employees. This paper provides the practical implications for management of universities to build the competent and motivated faculty and staff.</p>