The fundamental assumption of ________ is that full advantage of employee potential can be utilized by motivating them to accept organizational objectives.

McGregor gave the assumptions, which he believed could lead to more effective management of people in the organization, under the rubric of Theory Y. The fundamental implication of Theory Y is that full advantage of the personal and professional potential of employees can be taken by motivating them to accept organisational objectives, more particularly when their physiological and safety needs are well satisfied.