Maslow's Theory Z

First, There was Theory X and Theory Y

Maslow on Management pictureMaslow's Theory Z , presented in Maslow on Management, presupposes that people, once having reached a level of economic security, strive for a life steeped in values, a work life where the person would be able to create and produce.

Management / Motivation Theories X and Y were developed by Douglas Mcgregor.  Theory Z is not a McGregor idea and as such is not Mcgregor's extension of his XY theory.

Theory Z places more reliance on the attitude and responsibilities of the workers, whereas Mcgregor's XY theory is mainly focused on management and motivation from the manager's and organisation's perspective. While Theory Z offers excellent ideas, it's quite a pity that most organizations could benefit even through the application and understanding of Theory Y.

The March 1998 cover story in FORTUNE magazine is but one example of Maslow's Theory Z in action. Entitled Yo, Corporate America - I'm the New Organization Man, the article depicted the wants and needs of the new "gold collar worker." Expecting to be well paid, this generation also believes they are entitled to a job "that fun, a job that's cool, a job that lets them discover who they really are." Work is not about paying the rent anymore - it's about self-fulfillment.

"Work is not work. It's a hobby you happen to get paid for."

Theory Z - William Ouchi

Maslow's Theory Z should not be confused with the book by William Ouchi bearing the same name.

Another, competing, Theory Z, was presented by William Ouchi, in his 1981 book 'Theory Z: How American management can Meet the Japanese Challenge'. William Ouchi is professor of management at UCLA, Los Angeles, and a board member of several large US organisations.

Ouchi's Theory Z is often referred to as the 'Japanese' management style. Ouchi's Theory Z advocates a combination of the best of theory Y and modern Japanese management, placing a large amount of freedom and trust with workers, and assumes that workers have a strong loyalty and interest in team-working and the organization.

The commonalities between Ouchi's Theory Z, and Maslow's is not surprising, since Maslow's treatises on management and motivation shaped the worlds of Deming and Drucker, who in turn rebuilt Japan after WWII, and whose subsequent success in managing their people and the resulting rise to global power is the subject of Ouchi's book.

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