Theory Z

Theory Z is a name for various theories of human motivation built on Douglas McGregor's Theory X and Theory Y. Theories X, Y and various versions of Z have been used in human resource management, organizational behavior, organizational communication and organizational development.

McGregor's Theory X states that workers inherently dislike and avoid work and must be driven to it, in contrast to Theory Y which states that work is natural and can be a source of satisfaction when aimed at higher order human psychological needs.

One Theory Z was developed by Abraham Maslow[1] in his paper Theory Z[2] which was published in 1969 in the Journal of Transpersonal Psychology[3][4][5][6]. The second one is the 3D Theory which was developed by W. J. Reddin in his book "Managerial Effectiveness" (1970).

And the other is William Ouchi's so-called "Japanese Management" style which was explained in his book "Theory Z: How American Business Can Meet the Japanese Challenge" (1981); such style was popularized during the Asian economic boom of the 1980s.

For Ouchi, Theory Z focused on increasing employee loyalty to the company by providing a job for life with a strong focus on the well-being of the employee, both on and off the job. According to Ouchi, Theory Z management tends to promote stable employment, high productivity, and high employee morale and satisfaction.

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