Final answer:
Human relations theory, particularly Douglas McGregor's Theory Y, contrasts the classical approach by emphasizing the psychological and social aspects of employees, encouraging participative decision-making, responsibility, and intrinsic motivation.
Step-by-step explanation:
The management theory that recognizes psychological attributes of individual workers and the social forces within work groups, as opposed to the classical approach, is known as human relations theory. This theory is represented by Douglas McGregor's Theory Y, which contrasts the Theory X approach. Theory Y posits that employees are intrinsically motivated to work and can be self-directed and creative if given the right work environment.
Moreover, it emphasizes the importance of participative decision-making, responsibility, and the opportunity for employees to contribute to organizational goals. These attributes of Theory Y management are in stark contrast to the Theory X approach, which views employees as inherently lazy and solely motivated by rewards and punishments.