Many service firms have found that management styles that are consistent with McGregor's Theory Y are helpful in dealing with on-the-spot problems.

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McGregor's Theory Y suggests that individuals are motivated by higher level needs such as achievement and growth, and that management strategies should focus on empowering and trusting employees to make decisions. In situations where on-the-spot problem-solving is required, a Theory Y management style can be more effective in allowing employees to take ownership and responsibility for finding solutions.

Many Service Firms Have Found That Management Styles That Are