A Critique of Theory Z

Abstract

Ouchi's Theory Z prescribes how employees should be motivated for increased productivity. Based on the theoretical work of Emile Durkheim, it views the modern large corporation as a communal alternative to the shortcomings of other institutions in industrial mass society. Ouchi's assertion that Japan is the industrial society in which Theory Z has flourished receives limited support from research findings. Moreover, Ouchi's grounding of the theory in humanistic management seem unwarranted.