To understand Theory Z, it will be helpful to know something about the characteristics of large Japanese firms.

Ultimately, Theory Z promotes common structure and commitment to the organization, as well as constant improvement of work efficacy.

Theory Z therefore argues that:

The word "Wa" in Japanese can be applied to Theory Z because they both deal with promoting partnerships and group work.

Much like McGregor's theories, Ouchi's Theory Z makes certain assumptions about workers.

Promoting Theory Z and the Japanese word "Wa" is how the Japanese economy became so powerful.

According to Ouchi, Theory Z management tends to promote stable employment, high productivity, and high employee morale and satisfaction.

Professor Ouchi spent years researching Japanese companies and examining American companies using the Theory Z management styles.

This also ties into his affiliation with Theory Z as well as recognizing the dimensions of Theory Y managers.

William Ouchi introduced Theory Z, a hybrid management approach consisting of both Japanese and American philosophies and cultures.

Theory Z: How American Management Can Meet the Japanese Challenge and was a New York Times best-seller for over five months.

Ironically, "Japanese Management" and Theory Z itself were based on Dr. W. Edwards Deming's famous "14 points".

And also because the Japanese show a high level of enthusiasm to work, some of the researchers claim that 'Z' in the theory Z stands for 'Zeal'.

Theory Z of Ouchi is Dr. William Ouchi's so-called "Japanese Management" style popularized during the Asian economic boom of the 1980s.

But for this reason, Theory Z stresses the need for the workers to become generalists, rather than specialists, and to increase their knowledge of the company and its processes through job rotations and constant training.

Through this, Reddin advances towards another theory, Theory Z put forward by Abraham Maslow in his paper on Theory Z in 1970.

Theory Z is thus an extension of Theory Y, with the participative approach to decision-making emphasised as a need for consensus, and with an emphasis on personal commitment and the humanisation of work activities.

For Ouchi, Theory Z focused on increasing employee loyalty to the company by providing a job for life with a strong focus on the well-being of the employee, both on and off the job.

Theory Z is based on the belief that it is the spirit of co-operation, and the consensus approach to decision-making, that gives Japanese firms the advantages of higher employee motivation, better productivity and higher output quality.

S has the important property that all axioms of Zermelo set theory Z, except the axiom of Extensionality and the axiom of Choice, are theorems of S or a slight modification thereof.

Also, Theory Z workers have a high need to be supported by the company, and highly value a working environment in which such things as family, cultures and traditions, and social institutions are regarded as equally important as the work itself.

In particular, Dr. Ouchi, author of the best-selling "Theory Z: How American Business Can Meet the Japanese Challenge," shows how schools could have the funds they need to improve if they controlled their own budgets.

Finally, Theory Z workers, it is assumed, can be trusted to do their jobs to their utmost ability, so long as management can be trusted to support them and look out for their well being (Massie & Douglas, 1992).

To meet them I propose a dynamic, proactive reinvention of the organization to empower the teams using 60-second skills to address for success the strategic planning requirements in light of the Theory Z competitive strategy in time to produce a win-win-win situation."

Among the many people management strategies that companies employ are a "soft" approach that regards employees as a source of creative energy and participants in workplace decision making, a "hard" version explicitly focused on control and Theory Z that emphasizes philosophy, culture and consensus.