Theory Z

William Ouchi (1981) used characteristics of both Theory X and Theory Y in contrasting the management styles of American and Japanese organizations. Ouchi claimed taht U.S. organizations could learn much from the Japanese model of management, which he called Theory Z. Like Teory Y, Theory Z cites employee participation and individual development as important components of organizational growth. interpersonal relations between workers and managers are sressed in Theory X, in that management makes the key decisions in an organization, and a strong sense of authority must be maintained.

A common criticism of Theory Z is that it fails to recognize cultural diffrences between U.S and Japanese firm and how these diffrences are manifested in business organizations and management efforts. Nevertheless, aspects of Theory Z can be found in many electronic media organizations in such areas as employee training, various types of fringe benefits programs, and lines of communication with managers (which tend to be more direct)