Theory Y
A leadership view that people are intrinsically motivated, can direct their own work, and want to take on greater responsibility; managers who hold this view use an empowering, participative style.
Key Points
- Assumes employees are self-motivated and seek responsibility.
- Favors participative decision-making, coaching, and empowerment.
- Builds trust, autonomy, and psychological safety to enable high performance.
- Aligns well with agile, self-organizing teams and knowledge work.
Example
A project manager working with a Scrum team invites developers to select and estimate their own work for the sprint, sets a clear outcome (Sprint Goal), removes impediments, and supports learning rather than dictating tasks or micromanaging.
PMP Example Question
Which action best reflects a Theory Y leadership approach on an agile project?
- Creating detailed hourly task checklists and requiring status updates every two hours.
- Letting the team choose how to accomplish the sprint goal and estimate their work within agreed constraints.
- Linking attendance to penalties to ensure on-time delivery.
- Mandating overtime and assigning tasks based on the manager's assessment.
Correct Answer: B — Empowering, participative leadership that assumes intrinsic motivation
Explanation: Theory Y emphasizes trust, autonomy, and participation. Allowing the team to decide how to meet goals and to estimate their work aligns directly with Theory Y.
HKSM