Disengaged people exist in all types of
businesses. They don't care about the
company, they probably don't like their jobs, and they send negative signals
everywhere they go. Disengaged people
are like poison. They don't perform
their own jobs well. They have a bad
influence on your other staff. It's
typically a process that happens over time, as employee and employer
expectations grow further and further apart.
Back in the '70s and '80s, Japanese
organizations were arguably the most productive and efficient in the
world. The secret to their success was
how they were managing their people. Japanese
employees were engaged, empowered, and highly productive. Management professor William Ouchi argued that
Western organizations could learn from their Japanese counterparts. He created
Theory Z – a model that, he said, blended the best of Eastern and Western management
practices. Ouchi first wrote about
Theory Z in his 1981 book, "Theory Z: How American Management Can Meet the
Japanese Challenge”.
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. According to Ouchi, Theory Z management tends
to promote stable employment, high productivity, and high employee morale and
satisfaction. William Ouchi doesn't say
that the Japanese culture for business is necessarily the best strategy for the
American companies. He takes Japanese
business techniques and adapts them to the American corporate environment.
The most important pieces of this theory
is:
·
management must have a high degree of
confidence in its workers
·
assumes that workers will be
participating in the decisions of the company to a great degree
·
employees must be very knowledgeable
about the various issues of the company
·
employees possessing the competence to
make those decisions
·
the need for the workers to become
generalists, rather than specialists
·
to increase their knowledge of the
company and its processes through job rotations and constant training
·
develop a work force, which has more of
a loyalty towards staying with the company for an entire career
DIFFERENCES
BETWEEN AMERICAN AND JAPENESE MANAGEMENT PRACTICES
|
AMERICAN
ORGANIZATIONS
|
JAPENESE
ORGANIZATION
|
Short-term
employment
|
Lifetime employment
|
Rapid
evaluation and promotion
|
Slow evaluation and promotion
|
Specialized
career path
|
Non specialized career path
|
Individual
decision making
|
Collective decision making
|
Individual
responsibility
|
Collective responsibility
|
Explicit
control mechanism
|
Implicit control mechanism
|
Segmented
concern for employee as employee
|
Holistic concern for employee as a person
|
Theory Z of Ouchi believes that people
are innately self-motivated to do their work, loyal towards the company and
want to make the company succeed. The
theory Z managers would have to have a great deal of trust that their workers could
make sound decisions. This type of
leader is more likely to act as ‘coach’ and let the workers make most of the
decision.
The manager’s ability to exercise power
and authority comes from the worker’s trusting the management to take care of
them and allow them to do their jobs.
The workers have a great deal of input and weight in the decision making
process. Conflict in the Theory Z would
involve a great deal of discussion, collaboration, and negotiation. The workers would be the ones solving the conflicts,
while the managers would play more of a third party arbitrator role.