Theory X leadership styles can get stuck in a self-defeating trap.

As a reminder:

Theory X assumes that people are by default lazy and incompetent.

Theory Y assumes that people by default will rise to what is asked of them.

In an organization that isn't achieving as good of results as leadership wants, if management is using Theory X, they think the problem is that the employees have gotten more lazy or the employees' standards have eroded.

The answer seems to be to tighten: to set higher goals with less wiggle room.

Every so often this is exactly what was needed, and the problem is addressed.

But often it is not the problem, and the problem gets worse.

Management squeezes harder. As the results get worse, they clamp down harder.

"See? They aren't capable of doing the work and I need to increase the discipline."

In practice what might be happening is that the strategy the team is supposed to be executing is not actually a viable one.

"The beatings will continue until morale improves" is obviously a bad idea, but this same effect in the small is often seen as good management.