Explanation:

Option 1 is correct. According to McGregor, there are two opposing approaches to implementing Theory X: the "hard" approach and the "soft" approach. The hard approach depends on close supervision, intimidation, and imminent punishment. This approach can potentially yield a hostile, minimally cooperative work force that could harbour resentment towards management. The soft approach is the literal opposite, characterized by leniency and less strictly regulated rules in hopes for high workplace morale and therefore cooperative employees. Implementing a system that is too soft could result in an entitled, low-output workforce. McGregor believes both ends of the spectrum are too extreme for efficient real world application.Instead, McGregor feels that somewhere between the two approaches would be the most effective implementation of Theory X.