Theory Z of Ouchi

William Ouchi developed Theory Z after making a comparative study of Japanese and American management practices.Theory Z is an integrated model of motivation.It focusses attention on organisational and behavioural aspects of management.Theory Z suggests that large complex organisations are human systems and their effectiveness depends on the quality of humanism used. A type Z organisation has three major features- trust, subtlety and intimacy. According to Ouchi,trust,integrity and openness are essential ingredients of an effective organisation. Theory Z suggests that involvement of employees in related matters improves their commitment and performance.Involvement implies meaningful participation of employees in the decision-making process.The leader's role should be to co-ordinate the efforts of human beings in order to develop common culture and class feeling in the organisation. Organisation control system should be made informal.For this purpose emphasis should be made on mutual trust and co-operation rather than on superior-subordinate relationships.However, the theory is based on the Japanese management practices.These practices have evolved from Japan's unique culture and may not be relevant for organisations in different types of culture and may not be relevant for organisations in different types of culture. Critics also point out that there is lack of empirical research to confirm the practical utility of this theory.