Final answer:
Juan's belief in his employees' intelligence, creativity, and motivation is in line with Theory Y assumptions, which posit that workers are self-motivated and productive, thrive on responsibility, and can be further motivated through rewards and involvement in decision-making. Option 2 is correct answer.
Step-by-step explanation:
Juan, the CEO of a technological firm, holds a view of his employees that aligns with the Theory Y assumptions. Theory Y is characterized by the belief that employees are inherently motivated, enjoy their work, and are capable of self-direction and creativity.
Unlike Theory X assumptions, which suggest that employees are inherently lazy and must be controlled and coerced into being productive, Theory Y posits that employees are motivated by rewards and can contribute significantly to the organization if they are given the opportunity to be involved in decision-making processes and goal setting.
In a Theory Y environment, managers are encouraged to adopt a participative style of leadership, giving employees autonomy, believing in their intrinsic motivation, and offering them rewards for their creativity and hard work. This mirrors Juan's view that employees are intelligent, creative, hardworking and can be further motivated through rewards. Theory Y aligns well with modern practices such as telecommuting and the importance of work-family balance, by supporting the idea that employees are responsible and can manage their time effectively working from home.