In strong contrast to Theory X are the assumptions of Theory Y. These are that:
- Work can be very normal if the working environments are positive. Under those environments, people will seek responsibility.
- The spending of physical and mental effort at work is as natural as play or rest.
- People will be self-directed and also imaginative to come across their work and organizational objectives if they are faithful to them.
- People will be loyal to their excellence and efficiency intentions if rewards are in places that address higher needs for example self-fulfilment.
- The volume for resourcefulness-and-creativity spreads all the way through organization.
- Maximum number of people can handle responsibility for the reason that creativity and inventiveness are common in the population.
- Most people do not only react to controls and pressures, but exercises self-direction as well as self-control.
- Determination can produce intrinsic rewards for individuals
Under Theory Y assumptions, employees have an opportunity to bring into line their individual goals through organizational goals by using their need for fulfilment as the motivation. Employees can be productive when their work goals make even with their higher-level needs.
The higher-level desires of self-esteem and self-actualization are ongoing needs in that they are on no occasion fully satisfied.
McGregor argued that Theory Y controlling does not indicate a soft approach. Identifying that some people may not have gotten the level of development assumed by Theory Y, McGregor submits that those employees may require a structure of harder controls that a manager can ease as each employee progresses.
Theory Y assumptions are those of the humanist-manager, who takes a positive view of people’s approaches and expertise. These assumptions have much in mutual with consideration and employee-centred approaches to leadership.
Management Implications of Theory Y
If Theory Y embraces, the organisation can accurately perform several elements to attach the motivational dynamism of its employees:
- Decentralization and Allocation – If organizations decentralize control and moderate the quantity of levels of management; each manager will have more assistants and as a result will be forced to delegate some extra responsibilities and decision making to them.
- Job Enlargement – Extending the scope of an employee’s work enhances diversity and prospects to gratify self-esteem requirements.
- Participative Management – Considering employee intervention in the decision making process knocks their inventive ability and provides them with some control over their work atmosphere.
If accurately applied, such an atmosphere would end result in a boundless level of motivation as employees work to gratify their higher level personal needs through their works.