Theory Z and What a Principal Needs to Know Diane W. Davis

What is Theory Z and who designed it? Chief Architect - Dr. William Ouchi (with some of McGregor's X and Y theories entwined) Japanese Model developed during the economic boom of the 80's A management/leadership theory It is concerned with the culture of the whole school and not just the leadership of the school. More interested in how the school organization is put together and how it is managed.

Theory Z  Theory Z is a managerial design of a humanistic approach of employee/employer relationships. Its culture exhibits values, beliefs, and objectives that emphasis the complete socialization of members to achieve group goals. The following are example of factors that might be included in the development of the Theory Z approach to school dynamics.  The chart below provides a list of foundational principles and concepts of Theory Z that principals might find helpful in managing their organization.  Dr. Ouchi lists these six items as major components of Theory Z as applied to schools.

Theory Z in Schools Trust Subtlety Intimacy Motivation Through Self-Interest Equitable Reward System Quality Education Skills Training Shared Control and Decision Making Major Components of Theory Z as applied to Schools

Summary of Characteristics of the Theory Z * Long-term employment and job security * Collective responsibility * Implicit, informal control with explicit, formalized measures * Collective decision-making * Slow evaluation and promotion * Moderately specialized careers Concern for a total person, including their family

Principals need to know that:  Theory Z recommends the organization be committed to its people rather than demand commitment from its people.  Focuses on employee loyalty.  It recommends assigning more authority to frontline workers namely teachers.

Theory Z requires:  teamwork, training, and extensive collection and analysis of data.  can foster such things in education as team teaching, site based management, cooperative learning, and outcome based education.  focused on increasing employee loyalty to the company by providing a job for life with a strong focus on the well-being of the employee, both on and off the job.  According to Dr. William Ouchi, its leading proponent, Theory Z management tends to promote stable employment, high productivity, and high employee morale and satisfaction.

References Lunenburg, F.C., Ornstein, A.C. (2008). Education Administration: Concepts and Practices.Thomson and Wadsworth