Theory Y

Definition

Theory Y is a management concept that assumes employees are self-motivated, seek responsibility, and are creative problem solvers. It suggests that workers will give their best performance when they feel their needs are being considered and they have a stake in the company's success.

Related terms

Employee Empowerment: The practice of giving employees more responsibility and decision-making authority to increase their sense of ownership and involvement in business outcomes.

Self: Actualization - A concept in psychology referring to the realization or fulfillment of one's talents and potentialities, considered as a drive or need present in everyone.

Participative Management: A management approach where employees at all levels are encouraged to contribute ideas towards identifying and solving problems related to their work