Theory Z is a motivation theory invented by the American economist and management professor William Ouchi. The theory is followed by the X and Y theory, invented by Douglas McGregor in the 1960s. The Z theory was introduced in the 1980s by William Ouchi in the Japanese style. He stated that western organizations could learn from their Japanese counterparts. In 1981, William Ouchi, who has a Japanese background, wrote a book called Theory Z: How American Business can meet the Japanese Challenge’. According to him, the Z theory promotes high productivity, stable employment, high morality and employee satisfaction. This theory boosts employees’ loyalty by offering them a job for life with a strong focus on employee well-being. The theory revolved around the assumption that employees want a partnership with their employer or colleagues. They desire a connection and a high level of support from the manager and organization regarding the right facilities and safe working environment. In this theory, the development and training of employees are also included, and employees expect support from their organization.
