Final answer:
Theory Y is regarded as a better approach over Theory X because it encourages employee engagement and responsibility, leading to increased satisfaction, productivity, and potentially higher profitability for organizations.
Step-by-step explanation:
Why is theory Y a better approach to leading and motivating employees than theory X? This question explores the effectiveness of two contrasting management theories outlined by Douglas McGregor in 1960. Theory X assumes that employees inherently dislike work and must be controlled and coerced by management to perform. However, Theory Y suggests that employees are self-motivated and thrive on responsibility and involvement in their work. theory Y is considered superior because it aligns with the intrinsic motivation of employees to find inner satisfaction and fulfillment from their work. employees in Theory Y environments are often more engaged because they participate in setting their own personal and work goals and are involved in decision-making processes. this participation can increase a sense of ownership and accountability, leading to higher productivity and creativity. The use of transformational leadership style in Theory Y also empowers employees and encourages personal growth and initiative, which can result in better organizational outcomes.
in contrast, Theory X’s authoritarian style may lead to lower job satisfaction and morale, potentially increasing employee turnover rates. Theory Y's participative approach is supported by the efficiency wage theory, which posits that better-paid employees are more motivated and productive. This suggests that treating employees as valuable contributors rather than just labor to be managed could be more profitable in the long run. Overall, organizations that implement Theory Y may enjoy a more dynamic, motivated, and ultimately more successful workforce.