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Mcgregor's Theory Z Definition

Mcgregor's Theory Z Definition. This has, implications for management. During the 1970s, william ouchi began to expound its principles by comparing and contrasting japanese (type j) and american (type a) organisations.

McGregor Theory x & y
McGregor Theory x & y from www.slideshare.net

To start off with, here’s a brief definition of mcgregor’s theory x and theory y. For mcgregor, theory x and theory y are not opposite ends of the same continuum, but rather two different continua in themselves. Theory z the work on theory z which mcgregor began was not completely forgotten.

Theory z stresses the need to help workers become generalists, rather than specialists.


To start off with, here’s a brief definition of mcgregor’s theory x and theory y. Theory z is a management philosophy that deals with organizational culture, quality that shows how employees view their management their set of beliefs, values and principles. Unlike theories x and y, theory z recognizes a transcendent dimension to work and worker motivation.

Each assumes that the manager’s role is to organize resources, including people, to best benefit the company.


Theory z is used in organizations for development of organizational communication, manage organizational behavior and for human resource management, and the theory focuses on team work & group decision making. In his 1960 book, the human side of enterprise, mcgregor proposed two theories by which managers perceive and address employee motivation. For mcgregor, theory x and theory y are not opposite ends of the same continuum, but rather two different continua in themselves.

If a company wants to realize the benefits described above, it need to have the following:


Theory z • theory z has been called a sociological description of the humanistic organizations • “theory z is an approach to management based upon a combination of american and japanese management philosophies”. Theory z expounds a management style blending japanese and us organisational values. 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 most important one is theory z by william ouchi ('81), also called japanese management , having following characteristics:


Theory z is a name used for various combinations of mcgregor's theory x and y of employee motivation and organizational development. Theory x starts from the assumption that people are naturally lazy, want to avoid work as much as possible, do not wish. In theory x, douglas mcgregor summarizes the traditional view of management in a number of characteristic assumptions in which autocratic leadership style, close supervision and the hierarchical principle are the key elements.

Douglas mcgregor has developed a theory of motivation of the basis of hypotheses relating to human behaviour.


Mcgregor observes that if employees are lazy, indifferent, unwilling to take responsibility, stubborn, noncreative and no cooperative, the cause lies with management’s methods of control. During the 1970s, william ouchi began to expound its principles by comparing and contrasting japanese (type j) and american (type a) organisations. Theory z also makes assumptions about company culture.

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