Theory Y

Under Theory Y, a manager assumes that employees do not dislike work, and so are capable of being self-directed in accomplishing tasks. Furthermore, given their interest in doing a good job, employees will seek out responsibility. In addition, many employees can be relied upon to come up with imaginative solutions to problems. Since this is a relatively democratic approach to dealing with employees, relations between employees and managers tend to be quite good. Under Theory Y, managers are more likely to use a hands-off approach when dealing with employees.

Use of the Theory Y style can result in massive productivity improvements within a business, since management is tapping the potential of the entire workforce to come up with new ideas. The main downside of Theory Y is that work output tends to lack consistency, since management is not insisting on the uniformity of work products across the workforce.

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