Association of Chartered Certified Accountants (ACCA) Certification Practice Test

According to McGregor’s theory, what type of manager uses an autocratic approach?

1. Theory Z

2. Theory X

3. Theory Y

4. Transformational

The correct answer is: Theory X

In McGregor’s theory, the type of manager that employs an autocratic approach is associated with Theory X. This theory is predicated on a pessimistic view of human nature, suggesting that people inherently dislike work and will avoid it if possible. As a result, managers who subscribe to Theory X believe that employees need to be closely supervised and directed. They often resort to an autocratic leadership style, making decisions unilaterally and expecting compliance without input from their subordinates. This approach is characterized by a lack of trust in the workforce, emphasizing control and strict discipline to ensure productivity. On the other hand, Theory Y presents a more optimistic view of human behavior, suggesting that employees are self-motivated and thrive in environments where they can participate in decision-making, which does not align with an autocratic approach. Theory Z focuses on developing a strong sense of team dynamics and employee involvement, further deviating from autocracy. Transformational leadership, which emphasizes inspiring and motivating employees towards a common vision, also starkly contrasts with the command-and-control style associated with Theory X.