Z, theory
DESCRIPTION
An approach to human resource management that emphasizes the adoption and integration of a ‘Japanese’ style of management and associated management practices.
An approach to human resource management that emphasizes the adoption and integration of a ‘Japanese’ style of management and associated management practices.
KEY INSIGHTS
Developed by Ouchi (1981), who builds upon concepts developed and subsequently published by Deming (1986), theory Z is based on the premise that employees consider work as something that is natural and can be satisfying to the extent it meets their work-related psychological needs. In adopting a theory Z perspective, organizations therefore strive to develop employee loyalty through total concern for the person. Employment security and stable career prospects are key characteristics of theory Z organizations. A theory Z management approach emphasizes employee involvement in decision making, seeks to develop employee team spirit, recognizes employee contributions, and aims to develop mutual employee–management respect. In addition, while control systems may be implicit and informal, there is also an emphasis on the use of explicit and formal measures for evaluation.
Developed by Ouchi (1981), who builds upon concepts developed and subsequently published by Deming (1986), theory Z is based on the premise that employees consider work as something that is natural and can be satisfying to the extent it meets their work-related psychological needs. In adopting a theory Z perspective, organizations therefore strive to develop employee loyalty through total concern for the person. Employment security and stable career prospects are key characteristics of theory Z organizations. A theory Z management approach emphasizes employee involvement in decision making, seeks to develop employee team spirit, recognizes employee contributions, and aims to develop mutual employee–management respect. In addition, while control systems may be implicit and informal, there is also an emphasis on the use of explicit and formal measures for evaluation.
KEYWORDS Employee motivation, management practice
IMPLICATIONS
While many organizations may find it challenging to adopt fully a management style based on theory Z, knowledge of the theory and its supporting concepts can be invaluable to marketing managers seeking to understand the many possible benefits as well as costs stemming from its implementation. At the very least, understanding better the theory and its principles can provide marketing managers with a basis of comparison for alternative managerial approaches as well as guidance for gradually transforming their organizations in ways that enable greater long-term effectiveness.
While many organizations may find it challenging to adopt fully a management style based on theory Z, knowledge of the theory and its supporting concepts can be invaluable to marketing managers seeking to understand the many possible benefits as well as costs stemming from its implementation. At the very least, understanding better the theory and its principles can provide marketing managers with a basis of comparison for alternative managerial approaches as well as guidance for gradually transforming their organizations in ways that enable greater long-term effectiveness.
APPLICATION AREAS AND FURTHER READINGS
Marketing Strategy
Kotler, P., and Fahy, L. (1985). The New Competition: What Theory Z Didn’t Tell You about Marketing. Englewood Cliffs, NJ: Prentice-Hall.
Kotler, P., and Fahy, L. (1985). The New Competition: What Theory Z Didn’t Tell You about Marketing. Englewood Cliffs, NJ: Prentice-Hall.
Marketing Management
England, G. W. (1983). ‘Japanese and American Management: Theory Z and beyond,’ Journal of International Business Studies, 14, Fall, 131–141.
England, G. W. (1983). ‘Japanese and American Management: Theory Z and beyond,’ Journal of International Business Studies, 14, Fall, 131–141.
Lazer, William, Murata, Shoji, and Kosaka, Hiroshi (1985). ‘Japanese Marketing: Towards a Better Understanding,’ Journal of Marketing, 49(2), Spring, 69–81.
Sullivan, J. J. (1983). ‘A Critique of Theory Z,’ Academy of Management Review, 8, 132– 142.
BIBLIOGRAPHY
Ouchi, William G. (1981). Theory Z: How American Business Can Meet the Japanese Challenge. Reading, Mass.: Addison-Wesley.
Ouchi, William G. (1981). Theory Z: How American Business Can Meet the Japanese Challenge. Reading, Mass.: Addison-Wesley.
Deming, W. Edwards (1986). Out of the Crisis. Cambridge, Mass.: MIT Press.
Z-generation see generational marketing
zero-sum game see game theory
zone pricing see pricing strategies
zero-sum game see game theory
zone pricing see pricing strategies