The benefits of Theory Z, Ouchi claimed, would be reduced employee turnover, increased commitment, improved morale and job satisfaction, and drastic increases in productivity. Theory Z stresses the need to help workers become generalists, rather than specialists. The rationale for the drawn-out time frame is that it helps develop a more dedicated, loyal, and permanent workforce, which benefits the company; the employees, meanwhile, have the opportunity to fully develop their careers at one company.
One assumption is that they seek to build cooperative and intimate working relationships with their coworkers. In other words, employees have a strong desire for affiliation. Another assumption is that workers expect reciprocity and support from the company. Employees have a strong desire for connection. This requires a high level of support from the manager and the organisation in the form of a safe working environment and the right facilities.
The possibility for development and training can also be included on this list. Another assumption is that employees expect reciprocity and support from their organisation. Employees find a work-life balance important and want to maintain this.
Family, culture and traditions are therefore just as important as working conditions. The theory Z also assumes that employees trust that they can carry out their work properly with the right support from management.
The X theory states that employees are naturally lazy and only motivated to work because of the salary they receive. The X theory suggests that it is prudent to use autocratic and directive leadership and leave nothing to chance. The idea that employees may have their own initiative is unthinkable. On the other hand, McGregor wrote his Y-theory, in which he indicated that employees get satisfaction from their work and greatly appreciate being able to brainstorm and play a role in decision-making.
These higher psychological needs must be taken seriously and are the key to motivated employees. Abraham Maslow previously developed a pre Z theory in , based on three assumptions. Firstly, he indicated that human needs are never completely satisfied. Secondly, human behaviour is purposeful and motivates people when their needs are fulfilled.
Thirdly, these needs can be classified according to a hierarchical structure. The next step in the pyramid is the secondary safety need; everyone is looking for security and, for example, a permanent job can fulfil this because there is the security of a monthly salary. The next step to climb is the need to be socially accepted by your community.
The theory Z is a continuation of this last style, which makes it an even more participative style than the Y theory. Close Privacy Overview This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website.
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Informal Control System An organizational control system should be informal. On the other hand, employees also may fear involvement in decision making due to the fear of criticism.
It is certain that employees often do not understand the bigger issues, hence being a part of the decision-making meeting may not turn out to be fruitful. Besides, if all the employees start taking interest in decision making, the process may seem lengthy and slow. Theory Z emphasizes an unstructured organization, which can lead to chaos and nobody in the organization will choose to take responsibility for any action. Employees may not be interested in the lifetime employment scheme; as it is possible that the employees are ambitious.
Although it is aimed to build a strong rapport and loyalty among the superiors and subordinates, it just aids in job security. Besides, job security fabricates lazy employees. Engendering a common culture may not always be practical since an organization constitutes of employees from different regional, linguistic and religious backgrounds with people varying in practices, behaviors, and habits. After all, Theory Z emerged from the Japanese principles, which may not seem beneficial for the rest of the world.
Since all the economies differ in structure, form, and culture, the theory may not seem to work for all of them.
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