Theory Z is an approach to management that advocates matching the organization’s culture to that of the larger society and assumes that involved workers are the key to increased productivity.
In other words, the values of certain cultures affect the way the employees work, and therefore, those values should be taken into concideration when managing employees of a certain business.
Another part of the theory is that, theory Z workers can be trusted to do their jobs to their utmost ability so long as the management can be trusted to support them.
Interpreter of theory Z
Theory Z was created by Dr. William Ouchi Professor Ouchi spent years researching Japanese companies and examining American companies using the Theory Z management styles. By the 1980s, Japan was known for the highest productivity anywhere in the world, while America had fallen drastically. The word "Wa" in Japanese can be applied to Theory Z because they both deal with promoting partnerships and group work. The word "Wa" means a perfect circle or harmony, which influences Japanese society to always be in teams and to come to a solution together. Promoting Theory Z and the Japanese word "Wa" is how the Japanese economy became so powerful. And also because the Japanese show a high level enthusiasm to work,some of the researchers claim that 'Z ' in the theory Z stands for 'Zeal '.
Ouchi wrote a book called Theory Z How American Business Can Meet the Japanese Challenge (1981), in this book; Ouchi shows how American corporations can meet the Japanese challenges with a highly effective management style that promises to transform business in the 1980s. The secret to Japanese success, according to Ouchi, is not technology, but a special way of managing people. "This is a managing style that focuses on a strong company philosophy, a distinct corporate culture, long-range staff development, and consensus decision-making"(Ouchi, 1981). Ouchi shows that the results show lower turn-over,