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Theory Z is an approach to management based upon a combination of American and Japanese management philosophies. :
2 Theory Z is an approach to management based upon a combination of American and Japanese management philosophies.

Development of Theory z :
In the 1970s and 1980s, many United States industries lost market share to international competitors, particularly Japanese companies. Concerns about the competitiveness of U. S. companies led some to examine Japanese management practices for clues to the success enjoyed by many of their industries. This led to many articles and books purporting to explain the success of Japanese companies. It was in this atmosphere that Theory Z was introduced into the management lexicon. Development of Theory z

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Born 1943 Honolulu, Hawaii He learned a B.A. from Williams College (1965), an MBA from Stanford University (1967) and a Ph.D. in Business Administration from the University of Chicago (1972). An American professor and author in the field of business management. He was a pioneer in introducing interactional leadership theory in his application of Japanese-style management to corporate America. Studied the differences between Japanese and American companies and management styles His first book was Theory Z: How American Management Can Meet the Japanese Challenge. Theory Z was on the best seller list for five months, has been published in 14 foreign editions, and ranks as the seventh most widely held book of the twelve million titles held in 4,000 U.S. libraries. William G. Ouchi

Topics of Discussion :
The Japanese Management Approach, Called TYPE J The American Management Approach, Called TYPE A Ouchis Recommended A Hybrid Of Two Approaches , THEORY Z. 5 Topics of Discussion

The Japanese ManagementApproach, Called TYPE J :

Lifetime employment. Consensual decision making. Collective responsibility for the outcomes of decisions. Slow evaluation and promotion. Implied control mechanisms. No specialized career paths. Holistic concern for employees. 6 The Japanese ManagementApproach, Called TYPE J

The American Management Approach, Called TYPE A :

Short-term employment. Individual decision making. Individual responsibility for the outcomes of decisions. Rapid evaluation and promotion. Explicit control mechanism. Specialized career paths. Segmented concern for employees. 7 The American Management Approach, Called TYPE A

Ouchi Recommended A Hybrid Of The Two Approaches, THEORY Z. :

Ouchi Recommended A Hybrid Of The Two Approaches, THEORY Z.

Long-Term Employment :
Traditional U.S. organizations are plagued with short-term commitments by employees, but employers using more traditional management perspective may inadvertently encourage this by treating employees simply as replaceable cogs in the profit-making machinery. Type J organizations generally make life-long commitments to their employees and expect loyalty in return, but Type J organizations set the conditions to encourage this. This promotes stability in the organization and job security among employees. Long-Term Employment

Consensual Decision Making :

The Type Z organization emphasizes communication, collaboration, and consensus in decision making. This marks a contrast from the traditional Type An organization that emphasizes individual decision-making. 10 Consensual Decision Making

Individual Responsibility :
Type An organizations emphasize individual accountability and performance appraisal Traditionally, performance measures in Type J companies have been oriented to the group. Thus, Type Z organizations retain the emphasis on individual contributions that are characteristic of most American firms by recognizing individual achievements, albeit within the context of the wider group. 11 Individual Responsibility

Slow Evaluation And Promotion :

The Type An organization has generally been characterized by short-term evaluations of performance and rapid promotion of high achievers The Type J organization, conversely, adopts the Japanese model of slow evaluation and promotion. 12 Slow Evaluation And Promotion

Informal Control With Formalized Measures :

The Type Z organization relies on informal methods of control, but does measure performance through formal mechanisms This is an attempt to combine elements of both the Type A and Type J organizations. 13 Informal Control With Formalized Measures

Moderately Specialized Career Path :

Type An organizations have generally had quite specialized career paths, with employees avoiding jumps from functional area to another. Conversely, the Type J organization has generally had quite non-specialized career paths. The Type Z organization adopts a middle-ofthe-road posture, with career paths that are less specialized than the traditional U.S. model but more specialized than the traditional Japanese model. 14 Moderately Specialized Career Path

Holistic Concern :
The Type Z organization is characterized by concern for employees that goes beyond the workplace. This philosophy is more consistent with the Japanese model than the U.S. model. 15 Holistic Concern

Comparison & Contrast of Theories X, Y & Z :

Comparison & Contrast of Theories X, Y & Z

Comparison & Contrast of Theories X, Y & Z :

Comparison & Contrast of Theories X, Y & Z

Comparison & Contrast of Theories X, Y & Z :

Comparison & Contrast of Theories X, Y & Z

Comparison & Contrast of Theories X, Y & Z :

Comparison & Contrast of Theories X, Y & Z

CASE STUDY ON SAMSUNG :

Quite a few American firms have decided to experiment with Japanese management techniques and have had senior executives make several trips to Japanese plants in order to embody the Theory Z philosophy. But, it may actually be just as logical to visit Korean plants, because Korean management philosophy is also of Theory Z, as is shown with the conglomerate Samsung Group. CASE STUDY ON SAMSUNG 20

Samsung satisfies the following Theory Z management characteristics: :

The length of employment is neither short-termed nor lifetime; The organization culture values a collective approach, not individualization, regarding mode of decision making; Responsibility is assumed by the individual; The frequency of employee evaluation is low; The control depends on both implicit-informal and explicit-formal measures; The career path is moderately specialized; and There is holistic concern for employees. Samsung satisfies the following Theory Z management characteristics: 21

Evaluation of Theory z :
Management focused on increasing employee loyalty to the company by being concerned about the well-being of the employee, both on and off the job, offering life-long security of employment. Management emphasized stable employment, high employee morale & high satisfaction as keys to high productivity. Research into whether Theory Z organizations outperform others has yielded mixed results. Some studies suggest that Type Z organizations achieve benefits both in terms of employee satisfaction, motivation, and commitment as well as in terms of financial performance. Other studies conclude that Type Z organizations do not outperform other organizations. 22 Evaluation of Theory z

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THEORY Z COMPANIES

REFERENCES :
www.scribd.com www.referenceforbusiness.com Website: Enotes. http://www.enotes.com/management-encyclopedia/theory-z Website: Wikipedia. http://en.wikipedia.org/wiki/Theory_Z REFERENCE