Question

ABC Inc. is well known as a company that uses a human relations approach; the company emphasizes nurtures creativity and self-control in its employees. This company was following

a. Theory X.
b. Theory Z.
c. Theory Y.
d. Theory T.
e. Theory Q.

Answer 1

ABC Inc. aligns with Theory Y management, which encourages employee participation, creativity, and self-regulation, in contrast to the controlling and punitive nature of Theory X.

Step-by-step explanation:

ABC Inc., known for its practice of nurturing creativity and self-control among its employees, can be identified as following Theory Y. Developed by Douglas McGregor, Theory Y posits that employees are inherently motivated, enjoy their work, and seek out responsibility. This management approach contrasts sharply with Theory X, which assumes that employees are inherently lazy and require constant supervision and control. In a Theory Y organization, employees are often included in the decision-making process and their suggestions for improvements are welcomed, enabling them to work towards common goals through creativity and collaboration.

Examples of Theory Y practices include telecommuting with the flexibility to set one's own hours, inviting input on efficiency and safety, and a leadership style that is more transformational, aiming to inspire and motivate employees. This approach aligns with the human relations approach of fostering a more involved and self-regulating workforce.