Lesson notes, exercises, downloads, and recommended reading are below the video. On mobile, the video will rescale when you play it.

William Ouchi: Theory Z Organizations and Motivation

One of our most popular videos is the one about Douglas McGregor’s Theory X and Theory Y. As a result, people have asked me about Theory Z.

Theory Z, which was developed by William Ouchi, to describe the adoption of Japanese ideas of management in the United States.

Watching this video is worth 2 Management Courses CPD Points*.
(See below for more details)

This video is part of course module number 3.7.2
Program 3: Managing and Leading Individuals
Course 7: Motivation
Section 2: Process Models of Motivation

Check out our full Motivation playlist at https://www.youtube.com/playlist?list=PL6vWkk9L7LeE7ly5r-rFBoi0gt1o3yKhH

Check out our full Organizations playlist at https://www.youtube.com/playlist?list=PL6vWkk9L7LeGF14eUwmzg6rcqj8T_6W9U

Videos you may also like:
🎬 Douglas McGregor and Theory X & Theory Y: Process of Model of Motivation https://youtu.be/fS5iqEf1Azs
🎬 Organizations as Structures: Understanding an Organization as a Structure https://youtu.be/LLnoTLkapjo
🎬 Robin Fincham: Three Levels of Organizational Power https://youtu.be/Qcd_UcHGCe8
🎬 Henry Mintzberg’s 4 plus 2 Organizational Types https://youtu.be/JmvYcskjh3E
🎬 Edgar Schein’s Two Organizational Cultures https://youtu.be/9C64CXJw83E

Theory X assumes …
‘I hate my work, I only do it for the money, i don’t want to think for myself, indeed, I’d rather just do as little as I can.’
So my boss will favour carrot and stick incentives, presuming I need to be compelled to do the job I’m paid for.

Theory Y assumes …
‘I like to work, it’s part of my life, i want to do well, and I will work hard if given the responsibility and recognition I deserve.’
So my boss will give me the responsibility I earn and reward me with the recognition I deserve.

William Ouchi developed McGregor’s work.
William Ouchi’s 1981 Theory Z assumes …
‘I want a long term career, I want to believe in what I do, I need to be led with a clear sense of purpose.’
So, my boss will work hard to convince me of the benefits of my endeavors and enroll me as a committed employee. In return, I see my career as a long-game. I will develop my skills but expect slow and steady promotion, rather than a stellar rise.

Theory Z follows Japanese management and employment practices of the 1970s. Japanese manufacturing won superiority over competitors in Europe and the US.

Some US and European businesses tried to emulate Theory Z companies. They largely failed. Motivation works in the context of culture. Traditional Japanese culture is different from European and US culture.

Now, many Japanese companies have abandoned a Theory Z approach.

1. What elements of Theory Z can you see in the culture of your organization? (1 MC CPD Point)
2. What elements of Theory Z can you see in the way your managers and supervisors lead their teams? (1 MC CPD Point)
3. What are the pros and cons of a more Theory Z approach within your own culture? (2 MC CPD Points)

Free Resources
– CPD Tools – https://gum.co/MC-CPD
Paid resources
– Management Courses Onboarding Kit – https://gum.co/MC-ObK ($3)

For a solid introduction to motivation:
– HBR Guide to Motivating People https://geni.us/sO2IKgn

The best of modern thinking on motivation, in accessible business books. These are all modern classics:
– Drive: The Surprising Truth About What Motivates Us https://geni.us/uq3EBO
– Start With Why: How Great Leaders Inspire Everyone To Take Action https://geni.us/vjErAN
– Lead, Motivate, Engage: How to INSPIRE Your Team to Win at Work https://geni.us/ABkZEx
– Multipliers, Revised and Updated: How the Best Leaders Make Everyone Smart https://geni.us/E39I
– Payoff: The Hidden Logic That Shapes Our Motivations https://geni.us/uMaP
– The Progress Principle: Using Small Wins to Ignite Joy, Engagement, and Creativity at Work https://geni.us/tiEkeH

Management Courses Continuing Professional Development (CPD) Points
You can record your Management Courses CPD points on our free, downloadable CPD record log.
Download it here: https://gum.co/MC-CPD

Each video has two levels of MC CPD points. For this video:
– If you simply watched the video, record 2 MC CPD points
– If you also carried out all of the recommended exercises, score a total of 6 MC CPD points

Links to our book recommendations are affiliated through Amazon

#Management #ManagementCourses #TheoryZ


Expectancy Theories of Motivation: Vroom and Beyond [Compilation]
How Do We Motivate People? Top Process Models of Motivation [Compilation]
What Motivates People? The Top Motivation Models [Compilation]
What is Software as a Service, SaaS? …and PaaS …and IaaS
Sollution Selling: Neil Rackham’s SPIN Selling
What is the Triple Bottom Line?
What is the Sales Funnel?
NLP Time Line Therapy: What are Time Lines?
Social Awareness: What is it and How to Build it
Self Motivation: What is it and How to Build it
Self Regulation: What is it and How to Build It
Self Awareness: What is it and How to Build it
What is a USP? A Unique Selling Proposition
Seth Godin: What are Tribes?
What is 360-Degree Feedback? And a 4-step Process.
What is the Starfish Model for Giving Feedback?
Porter & Lawler: Expectancy Theory on Steroids
Edward Lawler: Vroom Enhanced with Two Types of Expectancy
French and Raven: Social Power Bases in Organizations
Charles Handy’s Triple-I Company
Charles Handy’s Shamrock Organization
Accelerate Team Development with Swift Trust
The Tuckman Model – Tuckman Team Development Model
What is a Team?
The Psychology of Motivation: Understand the Basics
Basics of Motivation: Building Morale in your Team
Basics of Motivation: Incentives – do they work?
Hackman and Oldham: Job Characteristics Model of Motivation
Work Orientation Theory: John Goldthorpe and How Attitudes affect Motivation
Edwin Locke: Goal-Setting Theory of Motivation
Daniel Pink and Motivation 3.0 – Content Models of Motivation
Ryan & Deci: Self Determination Theory (SDT) – Content Models of Motivation
Chris Argyris and the Immaturity-Maturity Model of Motivation: Treat People as Adults
Rensis Likert and High Producing Managers – Process Models of Motivation
David McClelland and Three Motivational Needs – Content Theories of Motivation
Clayton Alderfer and ERG Theory – Content Models of Motivation
Frederick Herzberg and the Two-factor Theory – Content Models of Motivation
Abraham Maslow and the Hierarchy of Needs – Content Model of Motivation
Douglas McGregor and Theory X & Theory Y: Process of Model of Motivation
John Stacy Adams and Equity Theory: Process of Model of Motivation
Victor Vroom and Expectancy Theory: Process of Model of Motivation
Elton Mayo and the Hawthorne Experiment: Process of Model of Motivation
The Trust Equation – Gravitas needs Trust
The Fundamentals of Motivation – Motives, Drives, and being Blocked
Introduction to Motivation: Key Questions Answered

Mike Clayton

About Mike Clayton 

Dr Mike Clayton is a (former) Project Manager and now a management educator. Having trained thousands of people at live workshops, seminars, and conferences, he now delivers training mainly via video. He has 14 books with international publishers and runs two successful YouTube channels. He is also the founder of OnlinePMCourses.com

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