Explain Theory 'Y'.

This theory is place forward by Douglas McGregor. It is based upon the management thinking containing certain assumptions regarding human nature and human behaviour.

This is a positive approach to human relations wherein a supervisor integrates the requirements of his subordinates with the requirements of Department. This emphasises on satisfying the needs therefore the employees willingly commit to the goals of the organisation. These assumptions are:-

 (a) Average human being does not hate work; specified meaningful work, he will try hard to attain.

(b) Work is as natural to him as rest or play.

(c) External threats and punishments are not the only means. Pleased persons will themselves exert self-control in seeking to achieve organisational goals.

(d) Average man learns, under appropriate conditions not only to accept but also to seek job.

 (e) Commitment to organisational goals depends on rewards related with his self achievement.

(f) The capacity to exercise a relatively high degree of imaginations, ingenuity and creativity and solution of organisational problems is extensively distributed between people.