Final answer:
Theory Y assumes that people inherently want to control their own destiny, contrasting with Theory X, which views people as needing to be coerced into working. Theory Y posits that employees can be self-motivated and responsible, and emphasizes the role of managers in developing employee potential.
Step-by-step explanation:
Theory Y assumes that people inherently want to control their own destiny. This motivational theory posits that employees are naturally responsible, creative, and able to work without direct supervision. It contrasts with Theory X, which takes a more pessimistic view of human behavior in the workplace, suggesting that people are inherently lazy and must be coerced into performing.
The basic assumption of Theory Y is that employees enjoy their labor if they are motivated and can find true satisfaction in their work. This theory aligns with the notion that individuals inherently seek to achieve, be engaged in, and take responsibility for their work. It also supports the idea that the role of managers is to develop the potential in employees and help them to release that potential towards common goals.
Understanding that people have different needs and desires, this theory acknowledges that while humans can be selfish, they also possess a desire for meaningful work and a need to contribute to something larger than themselves. Theory Y challenges managers to develop leadership styles that are transformational, encourage participation, and leverage the intrinsic motivations of employees.