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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?

  1. Creating detailed hourly task checklists and requiring status updates every two hours.
  2. Letting the team choose how to accomplish the sprint goal and estimate their work within agreed constraints.
  3. Linking attendance to penalties to ensure on-time delivery.
  4. 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.

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