After comparing American and Japanese management styles, William Ouchi created Theory Z. Theory Z is an integrated motivational model. According to Theory Z, huge, complex organizations are human systems, and the degree of humanism employed affects how effective they are. Trust, subtlety, and intimacy are the three main characteristics of a type Z organization.
Mutual trust among employees of a company decreases friction and promotes teamwork. Subtlety requires empathy for others and increases output. Intimacy entails care, encouragement, and self-controlled generosity.
The distinguishing features are as follows:
- Mutual Trust
- Strong Bond between Organisation and Employees
- Employee Involvement
- Integrated Organisation
- Coordination
- Informal Control System
- Human Resource Development
Thus, this theory is a hybrid management system that combines the best elements of Japanese and American management approaches, including job security, group decision-making, social cohesiveness, a comprehensive focus on employees, and individual freedom and risk-taking.
Japanese businesses that do business in the US have had success with Theory Z. Following partnerships between Japanese and Indian businesses, several experts have urged that this theory be applied in India. In Maruti Udyog, a partnership between Suzuki Motors of Japan and India, an attempt has been made to apply Theory Z. The same could be used for school management.
The workplace was created with an open office layout similar to the Japanese style. Regardless of their designation, all staff now wear the same uniform. Similar to that, there is a shared canteen for everyone. These procedures are anticipated to prevent status differences and feelings of class among employees, which will facilitate teamwork inside the organization.
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