Which theory assumes that workers are extrinsically motivated by money and require direction from management?

The theory that assumes workers are extrinsically motivated by money and require direction from management is Theory X. This concept, developed by Douglas McGregor in the 1960s, suggests that management's view of employees significantly influences the way they manage them.

In Theory X, it is believed that workers inherently dislike work and will avoid it if possible. As such, they require clear direction and control from management to fulfill their responsibilities. This perspective emphasizes the need for supervision and the use of monetary incentives to motivate employees, as it assumes that without these motivators, individuals would not be productive.

This approach contrasts with Theory Y, which posits that employees are intrinsically motivated, will seek responsibility, and can self-direct. Scientific Management focuses on optimizing work processes and efficiency rather than employee motivation, while Maslow's Hierarchy of Needs prioritizes psychological and physiological needs over monetary incentives. Hence, the characteristics outlined in Theory X distinctly highlight the reliance on extrinsic motivation and management oversight.