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

What does Theory X assume about employees?

1. Employees will work best with collective decision-making.

2. Employees need strict rules to perform well.

3. Employees perform well if in the right environment.

4. Employees thrive on creativity and independence.

The correct answer is: Employees need strict rules to perform well.

Theory X, formulated by Douglas McGregor, posits a rather skeptical view of employees. It suggests that employees tend to be inherently lazy, lack ambition, and require external control to ensure that they meet their work obligations. This theory assumes that workers are motivated primarily by financial incentives and that they are generally resistant to onerous or unpleasant tasks. Therefore, the assumption that employees need strict rules to perform well aligns perfectly with Theory X's perspective. It underlines the belief that managerial oversight, coercion, and control are necessary for keeping employees productive and engaged. The other choices reflect alternative views of management. Collective decision-making and emphasis on creativity and independence refer more to a Theory Y approach, which is rooted in the belief that employees are motivated by intrinsic factors and are capable of self-direction when given the right conditions. In contrast, Theory X focuses on the need for strict governance and control, as it inherently lacks trust in the workforce's ability to self-motivate and self-manage.