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CMA Foundation · Fundamentals of Business Economics and Management · Leadership and Motivation - Concepts and Theories

At Sharma Textiles in Surat, the plant head Mr. Iyer allows machine operators to set their own daily targets, rotate jobs and suggest process changes, believing that they enjoy responsibility when conditions are right. Which management style does this reflect?

This reflects Theory Y. Allowing operators to set targets, rotate jobs and suggest improvements assumes they accept responsibility, can direct themselves and find work satisfying. Strict supervision and coercion belong to Theory X, so options linking this practice to control are incorrect.

  1. ATheory X, because targets are being set
  2. BTheory Y, because it assumes people seek responsibility and can exercise self-directionCorrect
  3. CTheory X, because job rotation is a form of control
  4. DTheory Y, because it relies on strict supervision to ensure output

Explanation

Letting workers set targets and suggest improvements shows trust in self-direction and commitment, which is the core of Theory Y. Theory X would rely on close supervision and external control. The last option is wrong because strict supervision is a Theory X feature.

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