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

Which statement best describes the outcome of following Theory Y principles in management?

1. Improved employee creativity and innovation

2. Increased need for supervision

3. Limited decision-making power for employees

4. Higher operational costs

The correct answer is: Improved employee creativity and innovation

Embracing Theory Y principles in management emphasizes a positive and empowering view of employees, positing that they are motivated, responsible, and capable of self-direction. When managers adopt these principles, they create an environment that nurtures creativity and innovation among their employees. This occurs because employees feel trusted and valued, leading them to take initiative and share their unique ideas and solutions. The inspirational nature of Theory Y encourages collaboration and enhances job satisfaction, which in turn can drive performance improvements and foster a culture of innovation within the organization. Therefore, the best outcome associated with following Theory Y is indeed the enhancement of employee creativity and innovation, as it empowers individuals to contribute actively and think outside the box.