Theory Z of Motivation
Theory Z was developed by Prof. William Ouchi after making a comparative study of
Japanese and American management practices. Theory Z is an integrated model of
motivation which combines the best features of Japanese and American
management styles. Theory Z suggests a kind of give and take relationship between
the organization and the employees. It suggests that an employee will feel motivated
and give his best to the organisation if his human needs & social, personal &
professional needs are realized and fulfilled by the organisation. Theory Z is a
participative management style, for it to be a success, it is important that
management must have a high degree of confidence in its workers.
DEVELOPMENT OF THEORY Z
Theory Z was introduced into the management jargon by Prof. Ouchi. In the 1970s
and 1980s, many United States companies were underperforming and losing market
share while Japanese companies were outperforming the world.
This led to the concerns about the productivity & competitiveness of U. S. companies
which led may researchers to examine the reasons for success enjoyed by the
Japanese.
Ouchi found the Japanese work culture and management style to be different.
Japanese work in groups rather than as individuals & always come to a solution via
teamwork. Japanese work culture is characterized by job security, social cohesion and
holistic concern for employees. Japanese show a high level enthusiasm to work.
American management style and work culture is characterized by individualism, , risk
taking, quick decision-making. Difference between the Japanese and American
organisation management style has been shown in the table below:
Table 1: Difference between the Japanese and American management style
, According to Ouchi, The secret to Japanese success is not technology, but the
way they manage people and organisation. “This is a managing style that focuses on a
strong company philosophy, a distinct corporate culture, long-range staff
development, and consensus decision-making” (Ouchi, 1981).
William Ouchi didn’t advocate the use of Japanese culture for American business as
such. Instead, he came up with hybrid management approach combining Japanese
management philosophies with U.S. culture.
This hybrid management style that evolved out of the best practices of the US and the
Japanese culture is Theory Z. Theory Z capitalize on the best characteristics of
Japanese organizations while retaining aspects of management that are deeply rooted
in U.S. traditions of individualism. Ouchi proposed that a Theory Z management
approach could lead to:
• High employee morale.
• Greater employee commitment & job satisfaction.
• Lower rates of absenteeism and turnover.
• Higher quality products & high productivity.
• Better overall financial performance.
• Strong work force.
ASSUMPTIONS of THEORY Z.
Theory Z is based on certain assumptions. These assumptions actually form the basis
of the theory. The assumptions on which Theory Z is based are:
Theory Z was developed by Prof. William Ouchi after making a comparative study of
Japanese and American management practices. Theory Z is an integrated model of
motivation which combines the best features of Japanese and American
management styles. Theory Z suggests a kind of give and take relationship between
the organization and the employees. It suggests that an employee will feel motivated
and give his best to the organisation if his human needs & social, personal &
professional needs are realized and fulfilled by the organisation. Theory Z is a
participative management style, for it to be a success, it is important that
management must have a high degree of confidence in its workers.
DEVELOPMENT OF THEORY Z
Theory Z was introduced into the management jargon by Prof. Ouchi. In the 1970s
and 1980s, many United States companies were underperforming and losing market
share while Japanese companies were outperforming the world.
This led to the concerns about the productivity & competitiveness of U. S. companies
which led may researchers to examine the reasons for success enjoyed by the
Japanese.
Ouchi found the Japanese work culture and management style to be different.
Japanese work in groups rather than as individuals & always come to a solution via
teamwork. Japanese work culture is characterized by job security, social cohesion and
holistic concern for employees. Japanese show a high level enthusiasm to work.
American management style and work culture is characterized by individualism, , risk
taking, quick decision-making. Difference between the Japanese and American
organisation management style has been shown in the table below:
Table 1: Difference between the Japanese and American management style
, According to Ouchi, The secret to Japanese success is not technology, but the
way they manage people and organisation. “This is a managing style that focuses on a
strong company philosophy, a distinct corporate culture, long-range staff
development, and consensus decision-making” (Ouchi, 1981).
William Ouchi didn’t advocate the use of Japanese culture for American business as
such. Instead, he came up with hybrid management approach combining Japanese
management philosophies with U.S. culture.
This hybrid management style that evolved out of the best practices of the US and the
Japanese culture is Theory Z. Theory Z capitalize on the best characteristics of
Japanese organizations while retaining aspects of management that are deeply rooted
in U.S. traditions of individualism. Ouchi proposed that a Theory Z management
approach could lead to:
• High employee morale.
• Greater employee commitment & job satisfaction.
• Lower rates of absenteeism and turnover.
• Higher quality products & high productivity.
• Better overall financial performance.
• Strong work force.
ASSUMPTIONS of THEORY Z.
Theory Z is based on certain assumptions. These assumptions actually form the basis
of the theory. The assumptions on which Theory Z is based are:
