INTRODUCTION

The theory x and theory y are the theories propounded by douglasMcgregor when he stated that some assumptions are made about man at work that retarded the development of the organization. The assumption he called theory x and theory y.for theory x the assumption are that the average man dislike work and must be coerced, directed and controlled inorder to do his work.He can be made to contribute to the achievement of organizational objective only by threatening the satisfaction of his physiological and security needs. He seeks security and wishes to avoid responsibility for decision. For theory y he states that the ordinary man enjoys work just as he enjoys play and Rest. He will assume responsibility quite freely, exercise self direction and self control, that organisations based uponthe assumptions of theory y would operate differently from organisations based on theory x. such organisations would readily distribute responsibility widely among its managers and would want an individual to be involved consciously in relation affecting what he does and what others are doing and would want the individual to participate in setting goals for himself and for the organization. In other words, the individual would under the new assumptions, want to assume responsibility and the challenge for performance criteria. So theory y applied to the function of planning would give what is called management by objective involving participatory management rather than management by control