Theory z

Motivational theory that attempts to reconcile US academic Douglas McGregor's Theory x and Theory y. At the time of his death McGregor was working on a Theory z. Academic William Ouchi developed Theory z with reference to Japanese industry which at the time, in the 1980s, proved a fertile testing ground. His Theory Z: How American Management Can Meet the Japanese Challenge (1981) described Japanese corporate culture, arguing that Japanese Theory z employees are likely to be more motivated than Western theory x and y workers.

Aspects of Japanese working culture highlighted by Ouchi include: concern for the employee as a whole; lifetime employment; long-term development; moderate specialization; decision-making by consensus; individual sense of responsibility; and informal control.