Business Resources

Theory Z coined / invented by William Ouchi. This theory has already been implemented / executed on many companies in the United States and Japan. Theory Z emphasizes more on the role and position of the employee or employees in a company that can make workers into cozy, comfortable, happy and feel that they are an important part of the company. Thus, the employee will work more effectively and efficiently in doing their jobs.

The following are the terms and characteristics of companies that apply the theory of z:

1. Given the responsibility of individual or individuals.

2. Employees are free to work using the skills they have.

3. Employees are hired for life and if a company in crisis, then the employee will not be sacked or fired.

4. Decision-making is done by consensus or openly. Although it will take much longer but the degree to the successful implementation of the decision results obtained will be higher because it has the support of the majority of workers.

5. Promotions are done slowly from below, and the process of performance evaluation and promotion are done by day-care so as not to cause problems with employees.