Theory of Z
During studies involving the relationship between management processes and productivity, some negative attitudes within human nature were observed by psychologists, which placed a limit on the potential growth and development of many employees across all sectors.
Psychologists presented an alternative theory which was referred to as Theory Y which portrayed some positive aspects of human nature relating to employees which if carried out by management would lead to greater productivity.
During the 1980’s the USA was noticeably losing its share in the marketplace especially due to the expanding industrial policies of Japan. The methods being utilized by Japanese managers were closely studied by American industrialists and psychologists, and much literature was produced pertaining to styles of Japanese management.
It was at this time that Theory Z was developed as fresh approach to management styles in the US. Commonplace styles in the US were associated with individualism, while in Japan a more collective style of operation was being practiced.
It was proposed by a certain Professor William Ouchi that American management styles be modified to include the Japanese collective, and more humanistic approach, and put to work, while still preserving aspects of the more American style of individualism. It was suggested that the following overall benefits in terms of management approach and employee relationships would result. –
- A higher degree of job satisfaction.
- Much lower rates of employee absenteeism.
- A lesser degree of employee turnover, and thus reduce necessary re- training programs.
- A much more reliable and higher quality product.
- A far greater overall financial performance and profitability for companies adopting the Theory Z style of approach.
Some Aspects of Theory Z.
- Decision Making. Theory Z encourages the decision making process to be one which involves decision by consensus and collaboration, rather than an individual decision.
- Individualism. Companies practicing Theory Z still recognize individual accountability and achievement, and bases performance appraisals on such attributes.
- Evaluation. In US industry where traditionally, high performers received quick promotions, it is now recognized that the ‘Z’ approach of dealing slowly with employee performance evaluation and promotion, are more beneficial in the long term.
More recent studies of Theory Z have revealed that while some US companies do benefit from its approach, others do not show any considerable improvement in performance. During the 1990’s the Japanese economy tended to falter, and some degree of blame was attached to the theory for this.
But by focusing attention on a more corporate approach to management rather than individual decision, the thinking within Theory Z has now largely been adopted by American industry.
Written by admin on July 19, 2011 under Miscellaneous.
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