COSERE | 17 William Ouchi - added Theory Z. Theory Z stresses the need to help workers become generalists, rather than specialists. It views job rotations and continual training as a means of increasing employees’ knowledge of the company and its processes while building a variety of skills and abilities. The employees have the opportunity to fully develop their careers at one company. When employees rise to a higher level of management, it is expected that they will use Theory Z to “bring up,” train, and develop other employees in a similar fashion. Theory Z also makes assumptions about company culture: The company philosophy and culture need to be understood and embodied by all employees, and employees need to believe in the work they’re doing. The organization and management team need to have measures and programs in place to develop employees. Employment is usually long-term, and promotion is steady and measured. This leads to loyalty from team members. Employees are encouraged and expected to take part in organizational decisions. Because employees have a greater responsibility in making decisions and understand all aspects of the organization, they ought to be generalists. However, employees are still expected to have specialized career responsibilities, etc.
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