Final answer:
Theory Y managers see their subordinates as proactive, self-directed, and creative individuals who are capable and willing to work. They are viewed as contributors to the organization who find fulfillment in their jobs beyond monetary compensation.
Step-by-step explanation:
According to McGregor, Theory Y managers tend to see their subordinates as willing to work, willing to accept responsibility, capable of self direction, capable of self control, imaginative, and creative. This approach stands in direct contrast to Theory X managers, who view employees as passive, dependent on direction, and generally reluctant to take on responsibility. Theory Y assumes a more optimistic view of employees, suggesting that they are not just motivated by money but seek inner satisfaction from their work. Managers following this theory believe employees are capable of self-management and will contribute proactively to organizational goals, given the right environment.