Theory Z

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'Theory Z' is used to describe a number of different developments of the Theory X and and Theory Y models identified by Douglas McGregor.


The best-known Theory Z was popularised by William Ouchi in his book, 'Theory Z: How American Management Can Meet the Japanese Challenge' (1981).

Theory Z's assumptions about employee motivation include:

  • A strong desire for affiliation.
  • An expectation of reciprocity and support from the employer.
  • Valuing a working environment in which values including family, culture, and traditions are considered to be just as important as the work itself.
  • Given the right management support, workers can be trusted to do their jobs to their utmost ability, and to look after for their own and others’ well-being.


See also