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It was first described by William Ouchi in his book Theory ZHow Man merican !usiness "an Meet the #apanese "hallenge. Theory Z incorporates many elements associated with the #apanese approach to management$ such as trust and intimacy$ but #apanese ideas ha%e been adapted for use in the &nited 'tates. In Theory Z organi(ations$ managers and workers share responsibilities) the management style is participati%e) and employment is long term and often lifelong. Theory Z results in employees feeling organi(ational ownership. *ecent research has found that such feelings or ownership may produce positi%e attitudinal and beha%ioral effects or employees. +,-. In a Theory / organi(ation$ mangers focus on assumptions about the nature of the worker. Theory Z has been adapted and modified for use in a number of &.'. companies. One adaptation in%ol%es workers in decisions through 0uality circles. 1uality circles +also called 0uality-assurance teams. are small$ usually ha%ing 2 to 3 members who discuss ways to reduce waste$ eliminate problems$ and impro%e 0uality$ communication$ and work satisfaction. 'uch 0uality teams are a common techni0ue for harnessing the knowledge and creati%ity of hourly employees to sol%e problems in companies. 4%en more in%ol%ed than 0uality circles are programs that operate under names such as participating management$ employee in%ol%ement$ or self-directed work teams. *egardless of the term used to describe such programs$ they stri%e to gi%e employees more control o%er their 5obs while making them more responsible for the outcome of their efforts. 'uch programs often organi(e employees into work teams 2 to 62 members who are responsible for producing an entire product item. Team members are cross-trained and can therefore mo%e from 5ob to 5ob within the team. 4ach team essentially manages itself and is responsible for its 0uality$ scheduling$ ordering and use of materials$ and problem sol%ing. Many firms ha%e successfully employed work teams to boost morale$ producti%ity$ 0uality$ and competiti%eness. ccording to the e0uity theory$ how much people are willing to contribute to an organi(ation depends on their assessment of the fairness$ or e0uity$ of the rewards they will recei%e in e7change. In a fair situation$ a person recei%es rewards proportional to the contribution he or she makes to the organi(ation. Howe%er$ in practice$ e0uity is sub5ecti%e notion. 4ach worker regularly de%elops a personal input-output ratio by taking stock of his or her contribution +inputs. to the organi(ation in time$ effort$ skills$ and e7perience and assessing rewards +outputs. offered by the organi(ation in pay$ benefits$ recognition$ and promotions. The worker compares his or her ratio to the input-output ratio of some other person- a 8comparison other$8 who may be a co-worker$ a friend working in another organi(ation$ or an
8a%erage8 of se%eral people working in the organi(ation. If the two ratios are close$ the indi%idual will feel that he or she is being treated e0uitably. "onsider a woman who has a high-school education and earns 9,-$--- a year. When she compares her input-output ratio to that of a co-worker who has a college degree and makes 9:-$---$ she will probably feel that she is being paid fairly. Howe%er$ is she percei%es that her personal input-output ratio is lower than that of the college graduate$ she will probably feel that she is being treated unfairly and will be moti%ated to seek change. ;urther$ if she learns that the co-worker who earns 9:-$--- has only a high-school diploma$ she may belie%e she is being cheated by the organi(ation. To achie%e e0uity$ the woman could try to increase her outputs by asking for a raise or promotion. 'he could also try to ha%e the inputs of the 8comparison other8 increased or the outputs of the 8comparison other8 decreased. ;ailing to achie%e e0uity$ the woman may decide to lea%e the organi(ation. !ecause almost all the issues in%ol%ed in e0uity theory are sub5ecti%e$ they can be problematic. Managers should try to a%oid e0uity problems by ensuring that rewards are distributed on the basis of performance and that all employees clearly understand the basis for their pay and benefits. <sychologist =ictor =room described e7pectancy theory$ which states that moti%ation depends not only on how much a person wants something but also on the person>s perception of how likely he or she is to get it. person who wants something and has a reason to be optimistic will be strongly moti%ated. ;or e7ample$ say you really want a promotion. nd$ let>s say because you ha%e taken some night classes to impro%e your skills$ and moreo%er$ ha%e 5ust made a large$ significant sale$ you feel confident that you are 0ualified and able to handle the new position. Therefore$ you are moti%ated to try to get the promotion. In contrast$ if you do not belie%e you are likely to get what you want$ you may not be moti%ated to try to get it$ e%en though you really want it.