2. William G. Ouchi
American professor and author in the field of
business management.
Ouchi first came to prominence for his studies of
the differences between Japanese and American
companies and management styles.
Theory Z of Ouchi is Dr. William Ouchi's so-called
"Japanese Management" style popularized during
the Asian economic boom of the 1980s.
3. First book in 1981 -“Theory Z: How
American Management Can Meet the
Japanese Challenge.
Built on Douglas McGregor's Theory X
and Theory Y
4. What is theory z??????
Theory Z is an approach to management
based upon a combination of American
and Japanese management philosophies
and characterized by, among other things,
long-term job security, consensual
decision making, slow evaluation and
promotion procedures, and individual
responsibility within a group.
5. Differencesb/w American& Japanese
Management Practices
American Organizations
Short-term employment
Individual decision making
Individual responsibility
Rapid advancement
Explicit control mechanisms
Specialized career paths
Japanese Organizations
Lifetime employment
Collective decision making
Collective responsibility
Slow evaluation & promotion
Implicit control mechanisms
Non-specialized career paths
6. FEATURES of theory z
LONG-TERM EMPLOYMENT
COLLECTIVE DECISION MAKING
INDIVIDUAL RESPONSIBILITY
SLOW EVALUATION AND PROMOTION
INFORMAL CONTROL WITH FORMALIZED MEASURES
MODERATELY SPECIALIZED CAREER PATH
HOLISTIC CONCERN
7. LONG TERM EMPOLYMENT
Type Z organizations set the conditions to
encourage their employees to make life long
commitments to the organizations. Which promotes
stability in the organization and job security among
employees.
8. COLLECTIVE DECISION MAKING
This type of organization helps in effective
communication which helps in effective decision making.
9. INDIVIDUAL RESPONSIBILITY
Type Z organizations retain the
emphasises on individual contribution
that are characteristic of most American
firms by recognizing individual
achievements.
10. SLOW EVALUATION AND
PROMOTION
The Type A organization has generally
been characterized by short-term
evaluations of performance and rapid
promotion of high achievers. The Type J
organization, conversely, adopts the
Japanese model of slow evaluation and
promotion.
11. INFORMAL CONTROL WITH FORMALIZED
MEASURES
The Type Z organization relies on informal
methods of control, but does measure
performance through formal mechanisms.
12. MODERATELY SPECIALIZED CAREER
PATH
The Type Z organization adopts a
middle-of-the-road posture, with career
paths that are less specialized than the
traditional U.S. model but more
specialized than the traditional Japanese.
13. HOLISTIC CONCERN ( like
family)
The Type Z organization is characterized
by concern for employees that goes
beyond the workplace. This philosophy is
more consistent with the Japanese model
than the U.S. model.