Theory Z

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Theory Z is a name for various theories of human motivation built on Douglas McGregor's Theory X and Theory Y. Theories X, Y and various versions of Z have been used in human resource management, organizational behavior, organizational communication and organizational development. McGregor's Theory X states that workers inherently dislike and avoid work and must be driven to it, in contrast to Theory Y which states that work is natural and can be a source of satisfaction when aimed at higher order human psychological needs. One Theory Z was developed by Abraham H. Maslow in his paper "Theory Z", which was published in 1969 in the Journal of Transpersonal Psychology. A second theory is the 3D theory which was developed by W. J. Reddin in his book Managerial Effectiveness (1970), and a third theory is William Ouchi's so-called "Japanese management" style, which was explained in his book Theory Z: How American Business Can Meet the Japanese Challenge (1981) responding to the Asian economic boom of the 1980s. 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.