Theory X/Y assumptions as predictors of managers' propensity for participative decision making

Purpose – This study aims to explore whether McGregor's theory X/Y assumptions are determinants of managers' propensity for participative decision making (PDM). Design/methodology/approach – Surveys measuring theory X/Y assumptions and propensity for PDM were administered to 144 full‐time managers from divergent industries across the USA. The hypotheses were tested using linear regressions. Findings – Results generally support McGregor's assertion that managers' theory X/Y assumptions are linked to PDM. Findings suggest that theory X managers perceive that PDM negatively impacts their power while theory Y managers perceive a positive consequence of soliciting employee participation on their supervisory power and organizational effectiveness. Research limitations/implications – Although respondents represented diverse industries and organizations, the use of convenience sampling may temper generalizability of the findings. Also, the use of self‐reports may have elicited socially desirable responses. Greater attention is needed from researchers and practitioners to understand how managers' assumptions influence the adoption or avoidance of PDM. Practical implications – Findings suggest that managers' predisposition for PDM is predicted to a large extent by their theory X/Y assumptions. These results provide a compelling case for managers to continuously question their assumptions about employees and critically examine whether their biases influence their decision‐making practices. Originality/value – This study expands the landscape of PDM literature, adding further evidence that individual‐difference variables, in this case theory X/Y assumptions, greatly influence supervisors' biases about employee participation.