W G Ouchi

Introduction:

Ouchi believes that in American business great inefficiencies are mainly due to an acute specialization problem. Ouchi is famous for his work on ‘theory Z’ and has researched the impact of Japanese management philosophy on American businesses.

Ouchi’s approach of quality:

• Ouchi is famous for his work on ‘theory Z’ and has researched the impact of Japanese management philosophy on American businesses.
• Ouchi came to the conclusion that the success of Japanese businesses is mainly due to their commitment to quality and their participative style of management.
• Ouchi believes that in American business great inefficiencies are mainly due to an acute specialisation problem.

He concludes that: ’In the United States we conduct our careers between organisations but within a single specialty. In Japan people conduct careers between specialties but within a single organization.

Ouchi’s 13 steps in theory Z:

1 Understand the type Z organization and your role.

2 Audit your company’s philosophy.

3 Define the desired management philosophy and involve the company leader.

4 Implement the philosophy by creating both structures and incentives.

5 Develop interpersonal skills.

6 Test yourself and the system.

7 Involve the union.

8Stabilize employment. Avoid layoffs and share the misfortune.

9Decide on a system for slow evaluation and promotion.

10 Broaden career path development.

11Prepare for implementation at the first (bottom) level.

12Seek out areas to implement participation.

13Permit the development of relationships (for example, promote good communication).

Ouchi proposes these guidelines for the implementation of Japanese management philosophy based on high commitment to quality and a participative style of management.

There is no doubt that further TQM ideas and concepts will be developed in the future to facilitate meeting the requirements of a business market which is ever changing.