What was the primary purpose of Theory Z developed by William Ouchi?

What was the primary purpose of Theory Z developed by William Ouchi?

• A. To improve employee turnover
• B. To make American companies more competitive
• C. To emphasize individual achievement
• D. To establish strict management hierarchies

Answer: (B)

The primary purpose of Theory Z, developed by William Ouchi, was to make American companies more competitive. This management philosophy integrates aspects of both Japanese and American business practices, advocating for a strong focus on employee participation, collective decision-making, and long-term employment. By fostering a culture that encourages cooperation and commitment among employees, Theory Z aims to enhance productivity and improve organizational effectiveness. This approach contrasts with more traditional management styles that emphasize individual performance or strict hierarchies, prioritizing a more collaborative workplace which can ultimately lead to a competitive advantage in the marketplace.

The primary purpose of Theory Z, developed by William Ouchi, was to make American companies more competitive. This management philosophy integrates aspects of both Japanese and American business practices, advocating for a strong focus on employee participation, collective decision-making, and long-term employment. By fostering a culture that encourages cooperation and commitment among employees, Theory Z aims to enhance productivity and improve organizational effectiveness. This approach contrasts with more traditional management styles that emphasize individual performance or strict hierarchies, prioritizing a more collaborative workplace which can ultimately lead to a competitive advantage in the marketplace.