Motivation theories. William Ouchi’s theory Z.

William Ouchi, the professor of the University of California, developed in 1981 the Theory Z, which combines the features of American and Japanese management styles. In the company Z, workers participate in the decision-making process and are able to perform many different productive tasks. Such an approach, similar to the Japanese company culture, serves as an important driving force for increasing productivity with simultaneous reductions in absence and staff turnover. Theory Z underlines the importance of such aspects as work rotation, the expansion of staff skills, the advantage of specialists with wide profile compared to narrow specialisation and  the need for permanent development and staff training. 

In William Ouchi’s opinion, workers want to build friendly relationship based on cooperation with colleagues and employers. In the borders of his theory, workers need the company’s support and highly appreciate the work environment, in which family, culture, traditions and social institutes are no less important than the work itself. These workers have highly developed sense of order, discipline and moral commitment to work hard. Lastly, in the borders of Theory Z it is expected that workers will work with maxim output if management will support them and care for their well-being.

The important presumption of this theory is that management must be sure in its employees. Theory Z suggests the importance of development such as work force that would ensure loyalty to their company and a will to work there for life. In that case, when an employee has risen up to the high management level, he will have a thorough knowledge of the company and its activities and he will be able to effectively use Theory Z for new employees.