Theory Z of leadership and the need to know each employee

Theory Z of leadership was coined in the 1980s, coinciding with the economic boom of many Asian companies. It was Professor William Ouchi, an American of Japanese origin, who developed this theory with a very specific idea. He wanted to emphasize the need to create a new company culture in which the employee felt fulfilled in the organization itself.

This personal fulfillment always started from good relations between the workers themselves and the higher echelons. This basically involved creating another type of philosophy in which managers were participants in work dynamics. Working towards the same purposes and developing adequate training and promotion mechanisms would be some of those defining elements.

At the momentwe know that companies like IBM, Procter & Gamble, and Hewlett-Packard are Z organizations. The policies that define them are very different from the rest of the business market. They are work environments in which employees feel integrated, motivated and show very positive links between the entire human team that makes up these organizations.

In Theory Z, the leader must know and adapt to each individual employee. Understanding that not all people are the same is a priority.

What is Theory Z of leadership?

The first thing that may catch your attention about Theory Z of leadership is the letter that designates it. It has an explanation. It was in 1983 that Professor William Ouchi published a comparative study of American and Japanese management practices. He wanted to go a little further than the contributions given by businessman Douglas McGregor in the 1940s.

McGregor, key in human resource management, coined theories X and Y to define the two most common types of organization. Theory X assumes that the employee is pessimistic and shows an innate aversion to work. On the other hand, theory Y considers the worker as the most important asset of the company.

Well, William Ouchi established Theory Z to emphasize the idea that the quality of a company is defined by its humanism when treating employees. A good leader must promote permanent jobs and a philosophy that guarantees the well-being and motivation of the worker. And this requires taking care of and working on a series of very specific aspects. We go on to analyze them.

Collective decision making

To the extent possible, it is necessary to involve all figures in an organization when making relevant decisions. In this case, the classic vertical company in which the manager and directors are at the top holding power, changes. Communication mechanisms are established so that a good part of the actions and changes are consensual.

Continuous training

The company is in charge of providing continuous training to all people (employees and managers included) with the aim of improving the innate talent of each figure. This constant training mechanism is a priority element.

Stable and long-term employment

Another factor of Theory Z is that every employee has the perception and security that their work is decisive for business objectives. This implies that his contract must be fixed. Only in this way can a true commitment to one’s own organization be developed.

Job rotation

This element is highly interesting and practical. Theory Z of leadership states that Each worker must have the opportunity to discover and train in all the company’s tasks. This way you have a broader awareness of how that work environment works. Plus, you gain valuable skills.

Job rotations are a very common variable in this type of philosophy.

The importance of conciliation

Already in the 80s, Professor William Ouchi highlighted the relevance of addressing work-life balance.. The company has the obligation to provide measures and strategies so that each employee can satisfy their particular needs. Adjusting schedules, offering permits and attending to each particularity is essential.

Interpersonal trust

We pointed it out at the beginning. An essential pillar of Theory Z of leadership is to promote coexistence, respect and trust between all members of a work setting.. Humanism is understood as the ability to create healthy and harmonious relationships.

However, William Ouchi insisted on the need for these links to go beyond the merely formal. For this reason, he proposed organizing activities outside of work time, such as sports and leisure events, etc.

Theory Z of leadership and the need to know each employee

The good leader must know how to address each worker. Not only is it necessary for him to know his name, You must understand what each person is like, discover their history, their needs and frustrations. By making contact with the personal universe of each employee, you can not only improve their situation, but also know what deficiencies the company has and enhance their commitment to it.

Bosses and employees must be committed and motivated to meet the same objectives.

An inspiring theory

William Ouchi’s Theory Z sought to shape a workforce that was highly engaged and loyal to the company. He insisted that if the right conditions and business philosophy were created, the worker would always give his best and would remain in that organization throughout his life.

Well, as we can assume, These precepts are difficult to comply with and develop in the 21st century. In such a fluid and unstable labor market, it is not easy for an employee to commit themselves body, talent and soul to a company. Thus, and although in practice this approach is not always fulfilled, the theory is liked and inspiring.

In fact, there are North American companies that follow this trend and that are well positioned in the market. Perhaps, we need to reformulate many policies and mentalities.

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