Question

Which of the following management theories advocates employee ownership, profit sharing, and gain-sharing plans?

A. Theory X and Theory Y
B. Hawthorne studies
C. Organization as systems
D. Quality management
E. Follett's organizations as communities

Answer 1

Option (E), Follett's organizations as communities theory advocates for the employee ownership, profit-sharing, and gain-sharing plans, highlighting a partnership between employees and management.

Step-by-step explanation:

The management theory that advocates employee ownership, profit-sharing, and gain-sharing plans is Follett's organizations as communities. This philosophy emphasizes collaborative partnership amongst employees and management, aligning with the idea that employees should have a stake in the company.

This concept is part of a broader set of human-centered management theories that contrast with more traditional, top-down management styles represented by Theory X, which assumes employees are inherently lazy and in need of control. On the other hand, Theory Y aligns more with Follett's view, promoting employee participation and responsibility.