Final answer:
Theory Y managers view subordinates as capable of self-motivation and ambition, encouraging a participative management style unlike Theory X, which views workers as needing control and motivation through rewards or punishments.
Step-by-step explanation:
According to McGregor's Theory Y, managers tend to see their subordinates as capable of self-direction and self-motivation. Theory Y embodies a participative style of management, assuming that employees are not only motivated by monetary rewards but also seek fulfillment and satisfaction in their contributions to the workplace. In essence, Theory Y managers believe that employees are inherently good and ambitious, and they therefore encourage engagement, creativity, and a shared approach to problem-solving. This contrasts sharply with Theory X, which posits that workers are generally lazy, need to be controlled, and are primarily motivated by fear of punishment or the lure of incentives. A practical application of Theory Y is seen in policies like Toyota's, which empower employees to halt production to address and rectify defects, highlighting trust in employee judgment and encouraging proactive problem-solving.