Theory Z
and
What a Principal Needs to Know
Diane W. Davis
What is Theory Z and who designed it?
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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.
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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.
Major Components of Theory Z
as applied to Schools
Trust
Subtlety
Intimacy
Shared
Control
and
Decision Making
Motivation
Through
Self-Interest
Theory Z
in
Schools
Equitable
Reward
System
Skills
Training
Quality
Education
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
•http://vectorstudy.com/management_theories/theory_Z.htm
Principals need to know that:
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Theory Z recommends the organization be
committed to its people rather than
demand commitment from its people.
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Focuses on employee loyalty.
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It recommends assigning more authority to
frontline workers namely teachers.
Theory Z requires:

teamwork, training, and extensive collection and analysis of data.
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can foster such things in education as team teaching, site based
management, cooperative learning, and outcome based education.
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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.
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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