Theory Z

Merging Eastern and Western Management Styles

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Back in the '70s and '80s, Japanese organizations were arguably the most productive and efficient in the world, and they were making significant inroads into North American and European markets.

The secret to their success wasn't necessarily what they were producing. Rather, some argued, it was how they were managing their people – Japanese employees were engaged, empowered, and highly productive.

Management professor William Ouchi argued that Western organizations could learn from their Japanese counterparts. He created Theory Z – a model that, he said, blended the best of Eastern and Western management practices.

In this article, we'll explore this model and discuss if it's still relevant today. We'll also look at how you can apply its principles in your own organization.

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