<P> For McGregor, Theory X and Y are not opposite ends of the same continuum, but rather two different continua in themselves . In order to achieve the most efficient production, a combination of both theories may be appropriate . This approach is derived from Fred Fiedler's research over various leadership styles known as the contingency theory . This theory is based on 3 dimensions: Leader - member relationship, degree of task structure, and the leader's position power . </P> <P> According to the contingency theory, it is likely that a manager will need to adopt both approaches depending on the evolving circumstances, and internal and external locus of control throughout their workforce . </P> <P> People with a strong internal locus of control (personality) believe outcomes in their life develop primarily from their own actions and abilities, as a result they are task - oriented and spend little time building relationships among peers (Theory X). People with strong external locus of control believe outside factors are the primary influence on the outcomes in their life, therefore, they are relationship - oriented and focus on building relationships among peers (Theory Y). </P> <P> For example, when completing a project, an internal locus of control manager may use their rank as a factor to lead a workforce and focus on the group's ability and skills to achieve the best outcome, however, an external locus of control manager will use their relationship formed with a workforce to lead the group and focus on the workforce's morale and self - satisfaction to achieve the best result . </P>

Managers who accept the assumptions of theory x have the following characteristics except