Theory Z was identified by William Ouchi in his book,
“Theory Z: How American management can Meet the Japanese Challenge” in
1981. Theory Z is a Japanese-American
based management style comprised of five assumptions which are:
1.
Employees want close, cooperative relationships
with their employers and coworkers.
2.
Employees value their social life, culture,
traditions, and family as much as they value material success.
3.
Employees need a lot of support from their job
in the form of secure employment, good wages, and career advancement
opportunities.
4.
Employees are able to make good decisions
through compromises.
5.
Employees are dedicated to their work, and have
moral obligations as well as good self discipline.
With these five assumptions, it is easy to say that theory
Z essentially states that employees want to work, they want a secure
environment, they want to know their coworkers and bosses, they are dedicated
to their families just as much as work, and overall they enjoy job
satisfaction.
The theory itself came from a culmination of the best
known organizational structure of the Japanese and deep rooted American culture
and traditions. This theory is a
humanistic theory in that is focuses on social interactions between humans and
suggests essentially that a happy work is a productive worker. Professor Ouchi’s idea is that when a team
works well together, they fend together – much like a clan would fend for their
members. The idea behind this is that
the employees are close to their coworkers and bosses and have a deep sense of
loyalty to the firm/business because of this.
Instead of simply being self-interested, this management theory focuses
on group goals as a whole system. Commitment
and loyalty is the overall tone of the management style proposed by Ouchi, and
it is not necessarily an approach for every single company in America.
The main goals that are set forth in theory Z are long
term employment, consensual decision making, slow evaluation and promotion,
individual responsibility, informal control with formalized measures, holistic
concern, and specialized career paths.
With instruction in these areas, the theory is meant to increase overall
job satisfaction as well as more profits for the organization/business.
Reference:
"Theory Z: Encyclopedia of Management." eNotes
- Literature Study Guides, Lesson Plans, and More.. N.p., n.d. Web. 30 Aug. 2011.
<http://www.enotes.com/management-encyclopedia/theory-z>.
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