The Z Theory in Management
The Z Theory is a type of management theory that focuses on motivating workers to perform well because they are loyal to the company. Z Theory is a response to two earlier theories, Theory X and Theory Y. The purpose of the Z Theory is to get workers in American companies to be as productive as workers in Japanese companies.
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Benefits
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In the 1980s, American companies, especially auto manufacturers, were concerned about competition from Japanese exporters. The management theorist William Ouichi argued that the Japanese companies had an advantage over American manufacturers because of their management style, and that an American manager who applies Z Theory can gain the efficiency advantages of the Japanese firms.
History
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The earliest management theory is Theory X. Under Theory X, an employee does not want to work hard and take directions from an employer, and the employee only wants to receive a paycheck. Theory Y came later, and stated that employees are willing to take the initiative to learn about their job and work harder if the manager praises them and gives them benefits other than money. Theory Z goes even farther than Theory Y and attempts to convince employees to stay motivated even if a manager does not give them a reward.
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Autonomy
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Theory Z changes the focus from the manager to the workers. According to Morgan State University, Theory Z allows workers to vote on changes to the work environment instead of having the manager make all work-related decisions. Because the workers can make some decisions about how to run the workplace, they don't feel like the manager is imposing rules on them.
Tools
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The management theorist Kaoru Ishikawa is known for two methods that Theory Z uses, quality circles and fishbone diagrams. When a business establishes quality circles, the workers periodically meet and suggest improvements that will improve the quality of its products. The fishbone diagram, or Ishikawa diagram, lists individual factors and connects them to their effects, producing a chart that looks like the skeleton of a fish.
Problems
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Theory Z can be difficult to implement because Japanese companies do not operate the same as companies in the United States and other nations. According to Ishikawa, in Japan one union represents all employees at the same company, and in the United States a union represents workers in a specific profession. Theory Z requires workers in different jobs, such as office workers and factory workers, to make decisions together. Under Theory Z management, a worker also stays longer in a job without receiving a promotion. A worker in another country who does not expect lifetime employment at the same firm may decide to switch employers.
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