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

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.