Employees should feel empowered to be creative in their job and to set goals. Which theory does this describe?

• A. Theory Y
• B. Theory X
• C. Morale
• D. Employee Complaint Procedure

Answer: (A)

This centers on the idea that people perform best when they’re empowered to direct their own work. Theory Y, associated with McGregor, holds that workers are inherently motivated, seek meaningful challenges, and will be creative and take initiative when given freedom, responsibility, and the chance to set their own goals. Empowerment and encouraging goal setting are exactly the kinds of practices Theory Y advocates, because they tap into intrinsic motivation and trust employees to manage their work. This contrasts with Theory X, which sees people as needing close supervision and external pressure to perform.