Theory Z Organizations Business & Marketing Essay Paper (Essay Sample)

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Theory Z Organizations
The failure of American companies' adopting theory X and Theory Y in management in the 1980s resulted in a desperate need for a new management perspective. After American organizations lost their market share to Japanese companies, scholars sought to examine the factors behind the Japanese industry's success (Williams). For example, William Ouchi contrasted the American management approach to that of the Japanese and identified the differing approach to people's management. Ouchi's study birthed Theory Z of management, which combined the benefits of American Individualism with those of the Japanese rooted in collectiveness (Barnett). This paper seeks to critically analyze theory Z, its practices and uniqueness, importance, and impact. The paper will further discuss the futuristic proposal by Warren Bennis.
The Uniqueness of Theory Z Organization
A significant uniqueness of theory Z is its integration of both a formal approach and an informal approach to organization management (Ouchi). Theory Z organizations adopt a clan culture characterized by a family-like approach emphasizing nurturing, mentoring, and teamwork (Chand). Employees are also actively involved in decision making. Additionally, Theory Z organizations retain a formal bureaucratic hierarchy in specialization and employee performance appraisal. Therefore, leaders in type Z organizations use informal control to coordinate employees through communication and debate to create mutual trust and cooperation.