Which management theory assumes that people have a psychological need to work and seek achievement?

The correct answer reflects the essence of Theory Y, which is a management theory developed by Douglas McGregor. This theory posits that employees inherently desire to work, take responsibility, and seek opportunities for achievement. It emphasizes a positive view of human nature, suggesting that when given the necessary conditions, individuals will be motivated to perform well and contribute meaningfully to the organization.

Theory Y contrasts sharply with Theory X, which assumes that people inherently dislike work and must be coerced or controlled to perform. By focusing on the psychological needs for achievement, Theory Y encourages management practices that promote employee engagement, creativity, and self-actualization. This understanding has significant implications for how managers can foster a more productive and satisfying work environment, leading to organizational success.

Other theories mentioned, like Theory Z and Human Resource Theory, also touch on motivation and management styles but do not specifically emphasize the inherent psychological needs for work and achievement as defined in Theory Y.