Reported by: Lea Jane D.

Buensalido, RN
 William G. Ouchi
• 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
• Born 1943
• Honolulu, Hawaii
• He earned 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).
 Development of Theory z
Has been called a sociological description of the humanistic
organizations advocated by management pioneers such as Elton
Mayo, Chris Argyris, Rensis Likert, and Douglas McGregor.
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.
• Theory Z: How
American Management
Can Meet the
Japanese Challenge –
His first book in 1981
summarized his
observations. It currently
ranks as the seventh
most widely held book of
the 12 million titles held
in 4000 U.S. libraries.
Differences between American and Japanese
Management Practices
American Organizations
Short-term employment
Rapid evaluation & promotion
Specialized career paths
Individual decision making
Individual responsibility
Explicit control mechanisms
Segmented concern for employee as
an employee
Japanese Organizations
Lifetime employment
Slow evaluation & promotion
Non specialized career paths
Collective decision making
Collective responsibility
Implicit control mechanisms
Holistic concern for
employee as a person
 Characteristics of Theory Z

• consensus decision making

• guarantee of lifetime employment
• job security
• slower promotions
• quality circles
• establishment of strong bonds of responsibility
between superiors and subordinates fitting
employees to their jobs
• a holistic concern for the workers
THEORY Z COMPANIES
 SEVEN “S”OF MANAGEMENT

HARD “S”:
1. Strategy-plan of action
2. Structure-the organization
3. Systems-formal and informal procedures that
support the strategy and structure
 SEVEN “S”OF MANAGEMENT

SOFT “S”
4. Superordinate goals-guiding concepts
5. Staff-the people/human resource
6. Skills-the distinctive competences
7. Style-the cultural style of the organization or how
managers achieve goals
 Comparison & Contrast of Theories X, Y & Z

Management Douglas McGregor William Ouchi

Concept (Theory X & Y) (Theory Z)
Either being unwilling or
unmotivated to work, or
being self motivated towards
Believes that people are
work. Threats and
innately self motivated to not
disciplinary action are
only do their work, but also are
Motivation thought to be used more
loyal towards the company, and
effectively in this situation,
want to make the company
although monetary rewards
succeed.
can also be a prime
motivator to make Theory X
workers produce more.
 Comparison & Contrast of Theories X, Y & Z

Management Douglas McGregor William Ouchi

Concept (Theory X & Y) (Theory Z)

Theory X leaders would

Theory Z managers would
be more authoritarian,
have to have a great deal of
while Theory Y leaders
trust that their workers could
would be more
make sound decisions.
Leadership participative. But in both
Therefore, this type of leader
cases it seems that the
is more likely to act as
managers would still
"coach", and let the workers
retain a great deal of
make most of the decisions.
control.
 Comparison & Contrast of Theories X, Y & Z

Management Douglas McGregor William Ouchi

Concept (Theory X & Y) (Theory Z)
As mentioned above,
The manager's ability to
McGregor's managers, in
exercise power and authority
both cases, would seem to
comes from the worker's
keep most of the power
trusting management to take
Power & and authority. In the case
care of them, and allow them
Authority of Theory Y, the manager
to do their jobs. The workers
would take suggestions
have a great deal of input
from workers, but would
and weight in the decision
keep the power to
making process.
implement the decision.
 Comparison & Contrast of Theories X, Y & Z
Management Douglas McGregor
Concept (Theory X & Y)
This type of manager might
be more likely to exercise a
great deal of "Power" based
conflict resolution style,
especially with the Theory
Conflict
X workers. Theory Y
workers might be given the
opportunity to exert
"Negotiating" strategies to
solve their own differences.
William Ouchi
(Theory Z)
Conflict in the Theory Z
arena would involve a great
deal of discussion,
collaboration, and
negotiation. The workers
would be the ones solving
the conflicts, while the
managers would play more
of a "third party arbitrator"
role.
“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.”
 REFERENCES
• Website: Wikipedia. http://en.wikipedia.org/wiki/Theory_Z
• Website: Enotes. http://www.enotes.com/management-
encyclopedia/theory-z
• Marquis, Bessie and Carol Houston. (2006) Leadership Roles and
Management Functions In Nursing Theory and Application. 6th Edition.
Hongkong: Lippincott Williams and Wilkins.
• Tomey, Ann M. (2004) Guide to Nursing Management and Leadership. 7th
Edition. Singapore: Mosby Inc.
 THANK YOU!
Have a nice day.
GOD BLESS!