Final answer:
Irene is likely to implement participatory management, in line with Douglas McGregor's Theory Y, to encourage employee involvement in decision-making and treat them as self-motivated contributors to the company's goals.
Step-by-step explanation:
Irene, the CEO of a small company who subscribes to Douglas McGregor's assumptions about human nature, is most likely to favor participatory management to maximize employee motivation. McGregor's Theory Y, which features participatory management, proposes that employees are intrinsically motivated and will seek out responsibility, find satisfaction in their work, and can be creative problem solvers. Therefore, a Theory Y manager like Irene would involve employees in decision-making processes, encourage team collaboration, and be more likely to empower employees rather than control them strictly.
Unlike Theory X, which assumes that employees inherently dislike work and require strict supervision and control, Theory Y aligns with the modern trend of flatter organizational structures and employee empowerment. Participatory management practices in a Theory Y workplace may include collaborative goal-setting, open communication channels for employee input on efficiency and safety, and soliciting employee suggestions for process improvements. This participatory approach aligns with the idea that employees function better under leadership that respects their abilities and contributions, and seeks to involve them in organizational development.