According to Theory Y, how can leadership apply principles of management to improve employee motivation?

• A. By minimizing communication between management and staff to reduce distractions
• B. By encouraging employee participation in decision-making and fostering a supportive work environment
• C. By offering only financial incentives and ignoring personal growth needs
• D. By closely supervising employees and using strict rules to control behavior

Answer: (B)

Verified step by step guidance

1. Understand that Theory Y is a management theory which assumes that employees are self-motivated, seek responsibility, and can be creative in solving organizational problems.
2. Recognize that according to Theory Y, effective leadership involves creating an environment where employees feel valued and empowered rather than controlled or micromanaged.
3. Identify that encouraging employee participation in decision-making aligns with Theory Y because it taps into employees' intrinsic motivation and desire for responsibility.
4. Note that fostering a supportive work environment helps meet employees' higher-level psychological needs, such as belongingness and self-actualization, which enhances motivation.
5. Conclude that leadership applying Theory Y principles improves motivation by promoting collaboration, trust, and opportunities for personal growth rather than relying solely on control or financial incentives.