The credit to propound ‘Z’ theory of motivation goes to American management practictioner Prof. William G. Ouchi. He wrote a book entitled “Theory Z : How American business can meet the Japanese challenge.” This theory was published in 1981. Theory Z refers to selected managerial practice adopted to the environment of United States as suggested by W. Ouchi. Theory Z is a hybrid management system which incorporates the strengths of Japanese and American Management.
Theory Z suggests strong bond between organisation and its employees by providing life-time employment avoiding retrenchment and lay-off.
- Slow Evolution and Promotion :
Ouchi has mentioned in his theory that the Japanese assume that productivity is the result of group efforts, and is not a one-man contribution. Therefore, in place of promoting a person on the basis of his achievements, promotion should be based on how that person motivates the working groups.
In Japan, no emphasis is given on specialisation of managers. Theory Z assumes that there should be non-specialised career paths, the career paths should involve multiple-functions experience, and for this, there should be job rotation.
- Emphasis on Humanity Concern for the People :
Theory Z suggests that there should be holistic concern for people. Such holistic concern should extend beyond the workplace and reflect genuine concern for the total employees’ personality and so on.
- Collective Decision-Making :
This theory emphasises on employee participation in decision-making. Employees should be consulted and their suggestions should be considered while making decisions.
- Human Resource Development :
According to this theory, managers should develop new skills among the employees. Mangers should, therefore, identify and recognise the potential of their subordinates.
Theory Z recommends that managers should pay more attention to informal control procedures. Managers should lay more emphasis on mutual trust and cooperation, rather than on formal authority in ensuring control.
Thus, Theory Z provides a new dimension of motivation to employees. It calls for mutual trust and cooperation between managers and workers.
