Skip to content

CMA Foundation · Fundamentals of Business Economics and Management · Planning, Organizing, Staffing and Leading

According to McGregor's Theory X and Theory Y, a manager who believes that employees enjoy work, exercise self-direction and seek responsibility will most likely:

The manager will delegate authority and encourage participation. Believing that employees enjoy work, direct themselves and seek responsibility reflects McGregor's Theory Y, which favours trust, involvement and empowerment. Close supervision, centralised control and punishment belong to Theory X, which assumes people dislike work.

  1. ARely on close supervision and threats of punishment
  2. BDelegate authority and encourage participation in decisionsCorrect
  3. CCentralise all decisions to avoid employee errors
  4. DUse only monetary penalties to enforce discipline

Explanation

The beliefs described are Theory Y assumptions: people are self-motivated and responsible. A Theory Y manager therefore delegates and encourages participation. Close supervision, centralisation and punishment are Theory X approaches.

Did you get it right without looking?

One question tells you little. A timed set on Planning, Organizing, Staffing and Leading shows your real accuracy, how long you take and where you lose marks.

Practise Planning, Organizing, Staffing and LeadingFree diagnostic mock

More Planning, Organizing, Staffing and Leading questions