eory Z is characterized by informal control of employees, an emphasis on quality and productivity, intensive socialization, consensus seeking, commitment to the work and slow evaluation and promotion. These principles are in direct conflict with Theory X, but incorporate the philosophy that individual and organizational goals should be brought together that Theory Y introduced. Theory Z encourages group decision making, relies on a wide array of motivational techniques that extend beyond meeting the lower level needs and requires that individuals be committed to the work and philosophy of the organization.
Informal control of employees is a revolutionary concept for many American managers, who are used to exerting formal control through their positions. However, informal control can be effective in that supervisors become coaches and
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