The objective of Theory Z, is to achieve productivity, by developing the ability to coordinate people, not technology.
The following steps are suggested for the successful development of an effective organisation:
HELP UNDERSTANDING OF THE TYPE Z ORGANISATION
Manager involved should be made familiar with the underlying ideas of Theory Z. Ask them to do reading on the subject. Invite discussions of ideas. Resist interpreting scepticism as lack of cooperation. Develop trust. Trust consists of the understanding, that you and I share fundamentally compatible goals, desire a more effective working relationship together, and that neither desires to harm the other.
AUDIT THE COMPANY’S PHILOSOPHY
Ask yourself and your group: What are the Company’s objectives – its philosophy? Many different techniques can be used to carry out this audit. Some may employ an outside consultant, others may hold a series of discussions among a team, drawn from within. A simple questionnaire, may be used or personal interview.
ESTABLISH AN APPROPRIATE PHILOSOPHY
Here, the role of the formal leader or Chief Executive is most critical. The top Manager has an incentive to develop, over time, a trusting relationship, that permits a sharing of the decision-making authority, with subordinates – for the more decisions are shared, the greater will be the benefits of cooperation produced in the Management team.
CREATE STRUCTURES AND INCENTIVES
If the goal of structural variations is to produce cooperation, then their form must force individuals to work together. These forms must move away from most Company reporting relationships, which are often crutches to prop up lapses in cooperativeness.
DEVELOP INTERPERSONAL SKILLS
Acquire the skill of recognising patterns of interaction, in decision-making and problem solving groups. Does the group move too quickly to a solution, in order to avoid discussing the real problem? Do some members interfere in subtle ways, with open discussion? When does the group drift off-course & why? Another skill is to provide Leadership, in such a way that the group can quickly identify the important issues, get to the bottom of conflicts and arrive at high quality creative solutions.
TEST YOURSELF AND THE SYSTEM
A personal test is when Managers, begin to feel less harried and less pleased. Less harried, because there should be fewer occasions, when subordinates need help. But also less pleased, because Managers will feel unsure. In the short run, a Manager in an autocratic Company, has more pleasures. In type Z organisation, subordinates regularly challenge superiors. If this is happening regularly, proceed with confidence. Imagine the response of your newly awakened subordinates, when their subordinates give them the same treatment.
INVOLVE THE EMPLOYEES
In a healthy setting, the employees provide the Company, with a ready-made conduit, through which to communicate with them. Bureaucratised employees and Companies, will go out of business. Unless, all the staff members internally engage in a thorough debate on vital progressive issues, no amount of changing by Management will bridge the gap. The discussions process will go on, until both the employees and the Management are ready to take the kind of steps outlined below.
STABLISE EMPLOYMENT
High voluntary termination can be overcome, by providing employees with a work environment, that offers equity, challenge and participation in discussions about their work.
SLOW EVALUATION AND PROMOTION
Slowing down the process of evaluation and promotion, underscores to employees the importance of long – run performance.
Superior performance, need not always be acknowledged with higher pay. A system of non-monetary evaluation, such as frequent involvement with superiors on projects, must also be provided. These communicate, the expectation of greater income, in the future. It is also recognised, that the cooperative atmosphere in Z type organisations, provide many opportunities for employees, to participate in challenging assignments.
BROADEN CAREER PATHS
Managers who continue to circulate across jobs within a Company, even without hierarchical promotion, tend to retain their enthusiasm and effectiveness. For the process of career circulation, to succeed, top level Manager need to set an example.
IMPLEMENTATION AT LOWER LEVELS
With theory Z, the reason for starting at the top, boils down to the central issue, that a lower level employee cannot participate, unless those above provide the invitation to do so. Only after results, due to top level changes have emerged, should implementation, at the first level of employees be contemplated. The scepticism of employees at the bottom of the pyramid, can be overcome, only through great effort and only with the most consistent signals from above. Company policies and decisions must consistently express openness, trust and emphasis on the long run.
DOWN TO BRASS TACKS
Most of the poor productivity, attributed by Managers to their subordinates is, in fact the result of inputs not received, machinery not repaired, poor coordination, etc. Solicit suggestions from subordinates as a group, rather than from a few anonymous suggestion boxes. And don’t be fearful of implementing them.
HOLISTIC RELATIONSHIPS
Holistic relationships are a consequence, rather than a cause of organisational integration. It cannot be developed, but once the Z changes are under way, it has a change to grow. Regular question-answer sessions help. Be prepared to ask, as well as answer some tough questions. These work related issues, hold the key to holistic relations and they keep them free of Company paternalism.
These steps are intended as a guide, rather than a cookbook for management development. As a rough guide, allow approximately 2 years for percolation through the rank of Managers. By then, evidence of smoother coordination, faster reaction and more effective planning, should begin to appear. However, a complete shift from A to Z organization takes perhaps 10-15 years. But the Z process once begun, is largely self-sustaining, because it appeals to the basic values of all employees. The process should flourish, unless intentionally stopped by a disenchanted or threatened Top Management.
The following steps are suggested for the successful development of an effective organisation:
HELP UNDERSTANDING OF THE TYPE Z ORGANISATION
Manager involved should be made familiar with the underlying ideas of Theory Z. Ask them to do reading on the subject. Invite discussions of ideas. Resist interpreting scepticism as lack of cooperation. Develop trust. Trust consists of the understanding, that you and I share fundamentally compatible goals, desire a more effective working relationship together, and that neither desires to harm the other.
AUDIT THE COMPANY’S PHILOSOPHY
Ask yourself and your group: What are the Company’s objectives – its philosophy? Many different techniques can be used to carry out this audit. Some may employ an outside consultant, others may hold a series of discussions among a team, drawn from within. A simple questionnaire, may be used or personal interview.
ESTABLISH AN APPROPRIATE PHILOSOPHY
Here, the role of the formal leader or Chief Executive is most critical. The top Manager has an incentive to develop, over time, a trusting relationship, that permits a sharing of the decision-making authority, with subordinates – for the more decisions are shared, the greater will be the benefits of cooperation produced in the Management team.
CREATE STRUCTURES AND INCENTIVES
If the goal of structural variations is to produce cooperation, then their form must force individuals to work together. These forms must move away from most Company reporting relationships, which are often crutches to prop up lapses in cooperativeness.
DEVELOP INTERPERSONAL SKILLS
Acquire the skill of recognising patterns of interaction, in decision-making and problem solving groups. Does the group move too quickly to a solution, in order to avoid discussing the real problem? Do some members interfere in subtle ways, with open discussion? When does the group drift off-course & why? Another skill is to provide Leadership, in such a way that the group can quickly identify the important issues, get to the bottom of conflicts and arrive at high quality creative solutions.
TEST YOURSELF AND THE SYSTEM
A personal test is when Managers, begin to feel less harried and less pleased. Less harried, because there should be fewer occasions, when subordinates need help. But also less pleased, because Managers will feel unsure. In the short run, a Manager in an autocratic Company, has more pleasures. In type Z organisation, subordinates regularly challenge superiors. If this is happening regularly, proceed with confidence. Imagine the response of your newly awakened subordinates, when their subordinates give them the same treatment.
INVOLVE THE EMPLOYEES
In a healthy setting, the employees provide the Company, with a ready-made conduit, through which to communicate with them. Bureaucratised employees and Companies, will go out of business. Unless, all the staff members internally engage in a thorough debate on vital progressive issues, no amount of changing by Management will bridge the gap. The discussions process will go on, until both the employees and the Management are ready to take the kind of steps outlined below.
STABLISE EMPLOYMENT
High voluntary termination can be overcome, by providing employees with a work environment, that offers equity, challenge and participation in discussions about their work.
SLOW EVALUATION AND PROMOTION
Slowing down the process of evaluation and promotion, underscores to employees the importance of long – run performance.
Superior performance, need not always be acknowledged with higher pay. A system of non-monetary evaluation, such as frequent involvement with superiors on projects, must also be provided. These communicate, the expectation of greater income, in the future. It is also recognised, that the cooperative atmosphere in Z type organisations, provide many opportunities for employees, to participate in challenging assignments.
BROADEN CAREER PATHS
Managers who continue to circulate across jobs within a Company, even without hierarchical promotion, tend to retain their enthusiasm and effectiveness. For the process of career circulation, to succeed, top level Manager need to set an example.
IMPLEMENTATION AT LOWER LEVELS
With theory Z, the reason for starting at the top, boils down to the central issue, that a lower level employee cannot participate, unless those above provide the invitation to do so. Only after results, due to top level changes have emerged, should implementation, at the first level of employees be contemplated. The scepticism of employees at the bottom of the pyramid, can be overcome, only through great effort and only with the most consistent signals from above. Company policies and decisions must consistently express openness, trust and emphasis on the long run.
DOWN TO BRASS TACKS
Most of the poor productivity, attributed by Managers to their subordinates is, in fact the result of inputs not received, machinery not repaired, poor coordination, etc. Solicit suggestions from subordinates as a group, rather than from a few anonymous suggestion boxes. And don’t be fearful of implementing them.
HOLISTIC RELATIONSHIPS
Holistic relationships are a consequence, rather than a cause of organisational integration. It cannot be developed, but once the Z changes are under way, it has a change to grow. Regular question-answer sessions help. Be prepared to ask, as well as answer some tough questions. These work related issues, hold the key to holistic relations and they keep them free of Company paternalism.
These steps are intended as a guide, rather than a cookbook for management development. As a rough guide, allow approximately 2 years for percolation through the rank of Managers. By then, evidence of smoother coordination, faster reaction and more effective planning, should begin to appear. However, a complete shift from A to Z organization takes perhaps 10-15 years. But the Z process once begun, is largely self-sustaining, because it appeals to the basic values of all employees. The process should flourish, unless intentionally stopped by a disenchanted or threatened Top Management.
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