What does Theory Y imply about the management of employees?

• A. Employees should be closely monitored
• B. External controls are necessary for motivation
• C. Employees can self-direct if committed
• D. Strict rules and regulations are essential

Answer: (C)

Theory Y, developed by Douglas McGregor, suggests that employees are not only capable of self-direction but also seek to be responsible and engaged in their work when they are committed to their tasks. This concept posits that with the right conditions, people will take initiative and exhibit creativity in solving problems. The theory contrasts with Theory X, which assumes that employees are inherently lazy and require close supervision and strict controls to function effectively.

Under Theory Y, management should foster an environment that encourages autonomy and empowerment, knowing that well-motivated employees can perform their duties without the need for constant oversight. This results in higher job satisfaction, better productivity, and a more positive workplace atmosphere, as employees feel valued and trusted.

In the context of the other options, they reflect a more traditional, paternalistic approach to management. Close monitoring, reliance on external controls, and the necessity of strict rules imply a lack of trust in employees' abilities and motivations. Theory Y fundamentally shifts this view by emphasizing the importance of allowing employees to take ownership of their work.