Theory Z: (Emerging Approach in Management Thought): William Ouchi

Theory Z: (Emerging Approach in Management Thought): William Ouchi, a management expert, conducted research on both American (Theory X) and Japanese (Theory Y) and outlined a new theory called Theory Z. This theory combines the positive aspects of both the theories. The theory Z approach involves providing job security to employees to ensure their loyalty and long-term association with the company. It also involves job rotation of employees to develop their cross-functional skills. It also advocates the decision-making participation of the employees and emphasizes the use of formal control in the organization along with explicit performance measures. The organization shows concern to their employees’ well-being and lays emphasis on their training and development. The quality management is also the type of thought involves in this.