Theory Z & Productivity
Introduction
American pr
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Theory Z suggests that involved workers are the key to an increase in productivity and it offers several ways to manage people so that they can work together more effectively. American workers work as hard as any, increased productivity does not come from working harder. Productivity is believed to be a problem of social or managerial organization. Employees need long-range incentives to coordinate efforts. Theory Z states that productivity and trust go hand in hand. Japanese workers trust that their sacrifices will be repaid in the future and equity will be restored. Theory Z also points to the notion of subtlety; relationships between workers need to be considered; teams based on seniority loose subtlety and productivity declines. Intimacy is a thread of Japanese life; it is also found in the work setting. In American life it is found in the family, friendships, and the church; it is threatened by industrial life. Theory Z states that productivity is dependent on trust, subtlety, and intimacy (Ouchi, 1981). Japanese organization includes lifetime employment; promotions are from within and employees remain until mandatory retirement age. Termination does not take place for anything less than a major criminal offense. Rapid turnover in American companies results in formality and distance which does not lead to collective work. Japanese management mechanisms of control are thorough, demanding, disciplined, flexible, and different from Western firms. Managemen
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der, however, they also rely on commitment and trust (Ouchi, 1981).
Type Z organizations challenge the concept that industrial organizations need to be structured as bureaucratic hierarchies. Two other methods of organizing people in a cooperative effort are markets where price is the controlling influence, and clans, where cooperation results from shared values. Type Z organizations include commonly shared values. Companies exhibiting Type Z characteristics are Kodak, Proctor & Gamble, Hewlett-Packard, IBM, and Cummins Engine Co. Type Z organizations have stopped the rapid movement and turnover that are common in other industrial organizations (Ouchi & Price, 1993).
Disadvantages of the Type Z company are also noted. A clan atmosphere tends to develop a fear of outsiders. Deviance in all forms is resisted and consistency of belief is the glue of the company. Changing people's behavior is difficult and can only be done by changing the culture. Values reach deeply and culture changes slowly. A Type Z company may run the risk of becoming an industrial dinosaur which cannot shift in the environment. A strong advantage of the Type Z company is its ability to quickly adopt changes in procedure without bureaucracy or wor
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Approximate Word count = 1426
Approximate Pages = 6 (250 words per page)
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