Which theory describes managers as being more democratic and trusting?

The correct choice, McGregor's Theory Y, describes a management style that is democratic and trusting. This theory posits that managers who adopt a Theory Y approach view their employees as responsible and self-motivated individuals who want to contribute to the organization. As a result, these managers encourage participation in decision-making processes and foster an environment where employees feel valued and empowered. This contrasts sharply with Theory X, where managers see employees as inherently unmotivated and needing direct supervision.

By focusing on collaboration and trust, Theory Y promotes a positive workplace culture, leading to higher morale and productivity. This theory aligns with modern management practices that emphasize employee engagement and the importance of fostering a supportive environment for growth and creativity.

Understanding Theory Y helps in recognizing the effectiveness of participative management styles that enhance employee satisfaction and performance, contributing to overall organizational success.