Theory z
William G. Ouchi
What is Theory Z?
We reduce employee turnover, increase commitment, improve morale and job satisfaction, and increase productivity severely.
Organizations tend to be decentralized with fewer levels of management
Pros Of Theory Z
Employees tend to feel more significant due to being a huge part of the company and with being very well respected. A competitive work environment is created because employees can be rewarded for their hard work, this increases productivity between workers.
Cons of Theory Z
Performance levels withing the employees decrease once the rewards stop. Conflict sometimes occurs with having a competitive conflict.
Employees generally have a great experience working within a theory z company
Managers Perspective
Managers tend to be more satisfied with their employees because of Theory Z uses a method of management that improves organizational performances for employees; resulting in higher productivity for the business overall.
Employee Perspective
Employees admire this theory because it allows them to have steady employment.
Theory Z also assumes workers will be participating in the decisions of the company to a great degree.
Example of Theory Z
Google. Google only hires people on a term of five things: Ability to learn, leadership, humility, ownership and expertise. Rarely ever having to keep hiring new employees for the job, having a stable management and workers.