Blog | 07.05.2012

Enhancing Organizational Productivity By Transforming Work Culture: The Ouchi ‘Z’ Theory

Organization culture is critical to businesses. Work culture emulates organization productivity as a whole; this essentially became the grounds for William Ouchi study. During his studies Ouchi closely observed the Japanese and Americans Management styles. With extreme diversity in two styles, while the Japanese believed in rewarding employees not as individuals but as part of a team, they prefer individuals to strictly conform to the team they are working in, and do not expect employees to take their individual stand.

On the contrary Americans usually value their employees for their individual efforts. Americans admire if someone can go out of the way, doing things in their own defined manner and bring out good results.

His theory Z advocates a combination of both Japanese and American culture ensuring a stable organizational environment. Ouchi places more reliance on facilitating people work as a part of a team but along with this, individual achievement should not be neglected and awarded at regular intervals. There is so much where an individual can do all by himself, but to have a bigger impact; working with a team makes a huge difference. One of the most critical tenets of theory is that the management must have confidence in its teams in order for the proposed participative management to work.

The upside of this work culture is it helps in engagement and retentions in long term along with contributing to the overall organizational effectiveness. And as it is always said, longevity is always valuable, especially when the team is highly skilled.

The balance between team & individual contribution can easily be identified with Sapience. Sapience provides the ‘big picture’ about work patterns at every level of the business. Managers can set improvement goals and teams and individuals can then work towards attaining those objectives.
The automated work reports generated help managers to assess the Team Hygiene in terms of capacity utilisation and individual contribution too. For more details please contact us at sales@sapienceanalytics.com