The theory Z It is a type of organized activity that was developed by the American William Ouchi of Japanese parents in 1981. It is a theory that forms a new humanistic business philosophy where the company is in commitment to its employees.
It is a theory, also known as the japanese method, where the way is sought not to separate the human condition of the employee, since according to this theory the humanization of the relationship between boss - worker allows the increase of the productivity.
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The theory Z applied in a company, comprises a number of common characteristics that apply in the Japanese business system. It is a participatory system that is based on human relationships, on the understanding of the employee as an integral being who cannot separate his personal life from his work life.
In this sense, this theory proposes special conditions focused on trust, close personal relationships, teamwork, decision-making. collective decisions and employment for life, which are applied in order to acquire a better performance of the human resource and a greater production business.
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In this article you will find:
Characteristics of the Z theory
William Ouchi evaluated the characteristics of Japanese culture that are put into practice in business management and determined that the theory Z it is a system based on motivation. It indicates that large companies are human systems that are effective according to the human quality used. In conclusion, he determined the following characteristics:
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Evaluation and promotion
Within this model, an efficient staff is sought, which is why Japanese companies believe that large organizations are comprised of normal people, therefore, the advancement of promotions is a little slower.
Informal control
The idea of control is based on the search for guilt and the guilty. Japanese organizations have decentralized controls, this is because the same employee is the one who assumes the self-control, except when a certain problem arises that you cannot solve and you have to go to a supervisor.
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Definitive work
This factor is very important due to the high commitment that workers have with their company, which is very common in large organizations.
Total vision
Both the manager and the worker must have the totality of a business vision. Each employee has to value his own mistakes and worry about the results in general. For this, it is important that the company rotates in the different departments.
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Decision making allowed
When facing an important decision, it is necessary to consult the steering group, so that an agreement is reached and the decision made is put into practice.
Outstanding Values of Theory Z
Within this theory there are three core values as the following:
- Confidence: When people are expected to behave appropriately, trust in workers is promoted, therefore, control is not as demanding and self-control is promoted among employees.
- Close social relationships: The relationship that exists between the boss and the employee must include the person in general and not just a certain relationship, that is, the relationship must encompass greater intimacy.
- Subtlety in relationships: The treatment between bosses and employees must be adapted particularly to each employee, this is because each person is different, therefore, each person must have a specific treatment.
How to develop the Z culture in a company
To modify the corporate culture and adapt it to the theory Z To make changes to its structure, it is necessary to follow the following steps:
- A complete understanding of the Z theory of a firm and know what the role of all the participants is.
- Analyze the philosophy established in the organization and the results obtained so far.
- Incorporate new structures and incentives.
- Create close personal relationships between the company and the employees.
- Define in detail new business forms and promote the participation of the work team, as well as the understanding of the new organizational culture.
- Make progress evaluations of the above and check the results when the changes are carried out.
- Increase professional horizons of workers and delegate responsibilities.
- Reassess the progressive progress of the changes.
- Promote the integration and personal performance of the worker, as well as his participation in the company.
- Evaluate all the results that have been obtained.
The Z theory by William Ouchi, is undoubtedly a position that is assumed between personal and work life in an integral way that helps the employee to feel a better personal level that allows the fulfillment of their responsibilities and the objectives that improve the functioning business.
