CMA Foundation · Fundamentals of Business Economics and Management · Leadership and Motivation - Concepts and Theories
Which management practice is most consistent with McGregor's Theory Y?
Participative decision-making and delegation of authority fit Theory Y best. Theory Y assumes employees can exercise self-direction, accept responsibility and contribute ideas. Close supervision, punishment as a compliance tool and centralised decisions reflect Theory X assumptions that people must be controlled.
- ADetailed rules and close supervision of every task
- BParticipative decision-making and delegation of authorityCorrect
- CPunishment as the main tool to ensure compliance
- DCentralising all decisions with the top manager
Explanation
Theory Y assumes employees are capable of creativity and self-control, so participation, delegation and challenging jobs fit. The other three options are typical Theory X practices relying on control, threat and centralisation.
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