Theory Z

by Hailey Ruderman

This theory reduces employee turnover, increases commitment, improves morale and job satisfaction, and drastically increases productivity.

This was thought of by William G. Ouchi

Pros of Theory Z

The employees feel respected and important because they can do their job within the company and they know that they will be rewarded for it. This creates a competitive work environment, which will end up increasing the work each employee produces.
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The Employee's Perpspective

The employees are usually very happy with this theory because it tends to give employees stable employment and they are trusted by their managers. This theory also assumes that workers will be participating in the decisions of the company to a great degree which will make the employees happy because they have a say towards what they are doing.

The Manager's perspective

The Management is usually content with its employees with the Theory Z Management method because it improves organizational performance for its employees, therefore increasing productivity for the business overall.


Some examples of this theory are: Google, Starbucks and Virgin Mobile.