Future Business Leaders of America (FBLA) Business Management Practice Test

In general, Theory Y managers give their employees the freedom to make creative decisions. True or False?

1. True

2. False

The correct answer is: True

Theory Y, developed by Douglas McGregor, posits that workers are generally motivated, responsible, and capable of self-direction. Managers who subscribe to Theory Y believe that their employees thrive in an environment where they are given freedom to make decisions, particularly creative ones. This approach promotes trust in employees, allowing them to take initiative and contribute to the organization in innovative ways. The essence of Theory Y is that people are not only willing to work hard, but they also seek out responsibility and are motivated by their achievements. By providing employees with the freedom to make creative decisions, Theory Y managers can foster a more engaged and satisfied workforce, which can lead to higher productivity and motivation. This contrasts with Theory X, where managers typically adopt a more authoritarian style, assuming that employees require close supervision and control to perform effectively. Hence, stating that Theory Y managers give their employees freedom to make creative decisions is indeed true and reflects the foundational beliefs of this management approach.