THEORY Z: HOW AMERICAN BUSINESS CAN MEET THE JAPANESE CHALLENGE

BY WILLIAM OUCHI

KEY CONCEPTS

INVOLVED WORKERS ARE THE KEY TO INCREASED PRODUCTIVITY

MUST FIND A WAY TO WORK TOGETHER MORE EFFECTIVELY

KEY IS TRUST. PRODUCTIVITY AND TRUST GO HAND IN HAND

KEY CONCEPT--SUBTLETY.

RELATIONSHIPS HAVE TO BE FLEXIBLE

HUMANISM--LEADS TO LOWER STRESS, SOCIAL PROBLEMS

PERSONAL FEELINGS ARE PART OF WORK

PLANTS IN JAPAN--ALL RUN JAPANESE STYLE

IMPORTANT CHARACTERISTICS OF JAPANESE INDUSTRY

LIFETIME EMPLOYMENT

VENDORS--TOTAL COOPERATION

EMPLOYEES PAID A LARGE SUM IN THE FORM OF BONUSES

LARGE FIRMS CARRY A LARGE NUMBER OF TEMPORARY WORKERS--USUALLY WOMEN

DO SHOW FLEXABILITY TO MEET THEIR SCHEDULES

SMALL FIRMS ABLE TO GROW ONLY IN NEW MZRKETS

EVALUATION AND PROMOTION

USUALLY VERY SLOW--DISCOURAGES SHORT TERM CORPORATE GAMES

NO REASON TO ADVANCE AT SOMEONE ELSES EXPENSE

WORK SPACE ONE BIG ROOM--NO PARTITIONS

FORCES VALUES TO CONFORM EVERYONE WAITS THEIR TURN

GROUP MEMBERSHIP

CARE MOST WHAT PEERS THINK

COMPARED TO MARINES

NON-SPECIALIZED CAREER PATHS

NO DETAILED EXPERTISE--RATHER EXPERIENE IN MANY AREAS

CAN BE A WEAKNESS

LEADS TO ORGANIZATIONAL POINT OF VIEW

WORKERS LONG TERM MORE SATISFIED WHEN FACE NEW JOBS

CAREER DIFFERENCE:

US: BETWEEN ORGANIZATIONS, SAME SPECIALTY

JAPAN: BETWEEN SPECIALTIES, ONE ORGANIZATION

THREE CHARACTERISTICS LEAD TO HIGH PRODUCTIVITY

DECISION MAKING

PARTICIPATIVE

EVERYONE WHO WILL FEEL AN THE IMPACT A DECISION IS INVOLVED IN MAKING IT

GROUPS OF PEOPLE HAVE JOINT RESPONSIBILTY

COLLECTIVE VALUES

COLLECTIVE RESPONSIBILITY

TEAM PHILOSOPHY

SHORT TERM ASSESSMENT OF PERSONAL PERFORMANCE NOT WANTED

WHOLISTIC CONCERN FOR PEOPLE

INDUCTED INTO COMPANY WITH FORMAL CEREMONY

ECONOMIC AND SOCIAL LIFE INTEGRATED INTO WHOLE

TYPE Z COMPANIES

THOSE AMERICAN WHICH EMULATE JAPANESE COMPANIES WITH CERTAIN DIFFERENCES

--PROMOTION

EXAMPLES OF COMPANIES

HEWLETT PACKARD

IBM

INTEL

ROCKWELL INTERNATIONAL

DAYTON-HUDSON

ALL HAVE THEIR OWN STYLE

PROFITS--NOT AN END IN THEMSELVES BUT, REWARD TO

-GIVE VALUE TO CUSTOMERS

-HELP EMPLOYEES GROW

-CIVIC RESPONSIBILITY

ORGANIZATIONAL LIFE--RELY ON OTHERS

INTERPRESONAL RELATIONSHIPS TEND TO BE INFORMAL WITH NATURAL HUMAN CONCERNS

STRONG EGALITARIAN ATMOSPHERE

PEOPLE CAN BE TRUSTED AND WORK INDEPENDANTLY

HIGH COMMITMENT-HIGH PRODUCTIVITY

ORGANIZATIONAL TYPE--CLANS

THEY ARE INTIMATE ASSOCIATIONS

PEOPLE ENGAGED IN ECONOMIC ACTIVITY BUT TIED TOGETHER WITH A NUMBER OF BONDS

SUCCEED WITH TEAMWORK

INDIVIDUALS TEND TO WORK TOWARD COMMON GOOD

CLOSE INTERCHANGE BETWEEN WORK AND SOCIAL LIFE

PROBLEMS--TEND TO DEVELOP XENOPHOBIA

LOSS OF PROFESSIONALISM

TEND TO BE SEXIST AND RACIST

--HOMOGENEOUS

"PROBABLY NO FORM OF ORGANIATION

IS MORE SEXIST AND RACIST THAN

THE JAPANESE CORPORATION"

MAKING THEORY Z WORK

THIRTEEN STEPS TO MOVE FROM TRADITIONAL TO Z

1-UNDERSTAND THE TYPE Z ORGANIZATION AND YOUR ROLE

2-AUDIT YOUR COMPANY'S PHILOSPPHY

3-DEFINE THE DESIRED MANAGEMENT PHILOSOPHY AND INVOLVE THE COMPANY LEADER

4-IMPLEMENT THE PHILOSOPHY BY CREATING BOTH STRUCTURES AND INCENTIVES

5-DEVELOP INTERPERSONAL SKILLS

6-TEST YOURSELF AND THE SYSTEM

7-INVOLVE THE UNION

8-STABALIZE EMPLOYMENT

9-DECIDE ON A SYSTEM FOR SLOW EVALUATION AND PROMOTION

10-BROADEN CAREER PATH DEVELOPMENT

11-PREPARE FOR IMPLEMENTATION AT THE FIRST LEVEL

12-SEEK OUT AREAS TO IMPLEMENT PARTICIPATION

13-PERMIT THE DEVELOPMENT OF WHOLISTIC RELATIONSHIPS

THEORY Z ORGANIZATIONS HAVE UNIQUE PHILOSOPHIES

HP:

A-TO SERVE AS THE CONSUMERS' PURCHASING AGENT IN FULFILLING THEIR NEEDS AND EXPECTATIONS FOR MERCHANDISE AND SERVICES

B-TO CONTRIBUTE TO THE PERSONAL AND ROFESSIONAL DEVELOPMENT OF OUR EMPLOYEES

C-TO PROVIDE AN ATTRACTIVE FINANCIAL RETURN TO OUR SHAREHOLDERS

D-TO SERVE THE COMMUNITY IN WHICH WE OPERATE