Monday, August 29, 2011

Quick Information Regarding Theory Z

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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