Nursing Leadership Theories

Early Leadership Theories:

• Trait theories

• Behavioral theories

• Contingency theories

• Situational theories

Trait Theories

• Focused on leadership traits

• Assumes that a person must have certain innate abilities or personality traits in order to be a leader

Trait theories:

• “Great Man” Theory

• Trait Theory

• Individual Character Theory

Great Man Theory

• Assumes that the capacity for leadership is inherent, great leaders are born, not made.

• Often portray great leaders as heroic, mythic and destined to rise to leadership when needed.

• The term Great Man was used because leadership was thought primarily as a male quality, especially in terms of military leadership

Trait theory

• Assume that people inherit extraordinary qualities and traits that make them better suited to leadership.

• Believe that leaders were born • Special traits: tireless ambition, zest for

life, great orator skills, irresistible good looks, extremely persuasive

• Ex. Pope John Paul II, Mother Teresa, Margaret Thatcher, Nelson Mandela

Common traits of a leader

• 2 common traits:

• Positive Traits

• Negative Traits

Positive Traits

• Leaders who have positive traits bring people to progress

• Cheerful, forgiving, intelligent, good looking men and women among others

• “Effective leaders build leaders while leading.” (anonymous)

Negative Traits

• Leaders who have negative traits take people to destruction. They destroy rather than build. They are not able to grow good leaders but followers who go after each other

• Bitter, aggressive, loud-mouthed, sullen and ugly people.

Traits and skills of leaders by Stogdill:

• Traits:• Adaptable to

situations• Alert to social

environment• Ambitious and

achievement oriented• Assertive• Cooperative

• Decisive• Dependable• Dominant• Energetic• Persistent• Self-confident• Tolerant of stress• Willing to assume

responsibility

Traits and skills of leaders by Stogdill:

• Skills:• Clever• Conceptually skilled• Creative• Diplomatic and tactful• Fluent in speaking• Knowledgeable about

group task• Organized

• Persuasive• Socially skilled

Traits of a leader (Reeves,2001)

• Emotional stability and composure – calm, confident, predictable, particularly when under stress

• Admitting error – owning up to mistakes, rather than putting energy into covering up

• Good interpersonal skills- able to communicate and persuade without resort to negative or coercive tactics

• Intellectual breadth – able to understand a wide range of areas, rather than having a narrow area of expertise

Traits of a leader (Gardner, 1993)

• Decisiveness• Trustworthiness• Self-confidence• Capacity to motivate

people• Skill in dealing with

people• Task competence

Individual Character Theory

• Traits determine whether or not a person can be an effective leader.

• Distinctive physical and psychological individual characteristics account for leadership effectiveness.

• Taller, attractive, intelligent, self-reliant, and creative

BEHAVIORAL THEORIES

• Concerned with what leaders did and act than who the leader is

• Based upon the belief that leaders are made not born, people can be taught to become leaders through experience and observation

Kurt Lewin (1890 – 1947)

• Psychologist

• Categorized leadership styles:– Authoritarian– Democratic– Laissez – faire

• “Field theory of human behavior”

Kurt Lewin (1890 – 1947)• a. Autocratic- leaders make decisions alone;

more concerned with task accomplishment than people; tends to promote hostility and aggression.

• b. Democratic- get their followers involved in decision making; are people oriented; leads to increased productivity and job satisfaction

• c. Laissez-faire- leaders are loose and permissive; foster freedom for everyone and want them to feel good; results in low productivity and employee frustration

Kurt Lewin (1890 – 1947)

• Field theory of human behavior (1951) – people act the way they do depending on self-perceptions & their environment; to understand the leader’s behavior or that of the follower, one must look at the totality of the individual’s experience.

Three stages: CHANGE• First stage: Unfreezing – involves overcoming

inertia and dismantling the existing “mind set”

• Second stage: Change Occurs – the period of confusion and transition

• Third stage: Re-freezing – the new mindset is crystallizing and one’s comfort level is returning to previous levels. Internalized new roles and can adapt to new environment and culture.

Rensis Likert (1903 – 1981)

• Likert scale – a 5 scale measurement tool to determine the level of agreement and disagreement of a respondent to a set of questions that could be objective or subjective in nature. The format of typical five-level Likert item is:– Strongly agree– Disagree– Neither agree nor disagree– Agree– Strongly agree

The Linking Pin Model

• A concept of the ideal work relationship of workers in an organization.

• The model hopes to achieve a regularity of practice which would reinforce the organizational structure laid down by the organization. The competence and synergy of the workers would lead to the achievement of common purposes and goals.

4 types of management systems/4 leadership styles:

• 1. Exploitative – authoritative– Least effective performance– Managers show little confidence in staff

associates and ignore their ideas– Staff associates do not feel free to discuss

their jobs with the manager– Responsibility of organization’s goal is at the

top; goals are established through orders

4 types of management systems/4 leadership styles:

• 2. Benevolent – Authoritative– The manager is condescending to staff associates– Staff associates ideas are sometimes sought but they

do not feel very free to discuss their jobs with the manager

– Top management and middle management are responsible for setting goals

– Decisions are made at the top with some delegation– Staff associates are occasionally consulted for

problem solving

4 types of management systems/4 leadership styles:

• 3. Consultative– The manager has substantial confidence in

staff associates– Their ideas are usually sought and they feel

free to discuss their work with the manager– Responsibility for setting goals is fairly

general– Managers are quite familiar with the problem

faced by their staff associates

4 types of management systems/4 leadership styles:

• 4. Participative– Associated with the most effective performance

– Managers have complete confidence in their staff associates

– Ideas are always sought

– Managers are very well informed about the problems faced by their staff associate and decision making is well integrated throughout the organization with full involvement of staff associates

Robert R. Blake (1918-2004) & Jane Mouton (-1987)

• Developed the MANAGERIAL GRID MODEL (1964; 1978) – attempts to conceptualize management in terms of relations and leadership style.

• The grid consists of two behavioral dimensions: Concern for task or production & Concern for people

Blake and MoutonManagerial Grid

THE NURSE ADMINISTRATOR GRID

The 9,1 nurse administrator

is primarily concerned with hospital services accomplishment and has little, if any, concern for staff members. This person wants to meet all schedules and get the job done at all cost.

THE NURSE ADMINISTRATOR GRID

The 1,9 nurse administrator reflects a minimal concern for hospital services coupled with a maximal concern for staff members;

the 1,1 style reflects a moderate concern for both.

The 9,9 style is considered as the ideal approached for integrating a maximum concern for staff members.

SITUATIONAL or CONTINGENCY THEORIES

• Different situations demand different types of leadership.

• SITUATION – a set of values and attitudes with which the individual or group has to deal in a process of activity and with regard to which this activity is planned and its result appreciated.

SITUATIONAL or CONTINGENCY THEORIES

• It is also called contingency theories because the leadership style would be dependent on the situation that the leader is faced at the moment

Paul Hersey & Kenneth Blanchard

• Leaders should adapt their style to follower development style (or maturity), based on how willing the follower is to perform required tasks. Their readiness depends on their competence and motivation.

Paul Hersey & Kenneth Blanchard

• Four leadership styles (S1 to S4) that match the development levels (D1 to D4) of the followers – suggests that leaders should put greater or less focus on the task in question and / or the relationship between the leader and the follower, depending on the development level of the follower.

S1: Directing / telling leaders

• Leader defines the roles and tasks of the “follower”, and supervises them closely

• Decisions are made by the leader and announced, so communication is largely one-way

S2: Coaching / selling leaders

• Leader defines roles and tasks, but seeks ideas and suggestions from the follower

• Decisions remain the leader’s prerogative, but communication is much more two - way

S3: Supporting / participating leaders

• Leader passes day to day decisions, such as task allocation and processes to the follower

• The leader facilitates and takes part in decisions, but control is with the follower

S4: Delegating leaders

• Leaders are still involved in decisions and problem – solving, but control is with the follower

• The follower decides when and how the leader will be involved.

• Of these, there is no one leadership style that is considered optimal or desired for all leaders to possess.

• Effective leaders need to be flexible, and must adapt themselves according to the situation.

• Each leader must know his/her intrinsic style.

Fred Fiedler (1922-)

• Developed his theory around the premise that leaders’ personal characteristics are stable and therefore is the leadership style

• FIEDLER CONTINGENCY MODEL is a leadership theory that moved from the research of traits and personal characteristics of the leaders to leadership styles and behaviors

FIEDLER CONTINGENCY MODEL

• This model is focused on the personality & relationship between the leader and group members, programming of group’s assignment & positional power of the leader.

FIEDLER CONTINGENCY MODEL

• A task oriented leadership style. The leader has great influence or power over group members

• 3 Aspects of the situation that needs to be considered:– Leader – member relation: refers to how well the

managers and the workers get along– Task structure : refers to how the nature of the job to

be done is highly structured or fairly unstructured or somewhere in between

– Position power : refers to how much legitimate authority does the leader – manager possess

VICTOR HAROLD VROOM AND YETTON

• Suggested that the selection of a leadership style will determine – decision making.

• Aspects of the situation:– Importance of the decision quality and acceptance– Amount of relevant information possessed by the

leader and subordinates– Likelihood that subordinates will accept an autocratic

decision or cooperate in trying to make a good decision if allowed to participate

– Amount of disagreement among subordinates with respect to their preferred alternatives

Vrooms participative model

• Provides a set of rules or norms that determine how participatory a leader should be when making decisions

• After weighing up various contingencies a leader can choose to:

• 1. decide on their own and if necessary sell their decision

• 2. consult some staff members individually, gathering some informal ideas and then make the decision themselves

• 3. consult the staff as a group, gathering their suggestions but still making the decision themselves

• 4. facilitate a meeting where they define the problem and set the limits within which a decision needs to be made, and then uses a consensus approach to make a decision

• 5. delegate the decision-making process either to the team or individual responsible for enacting the decision

ROBERT HOUSE

• PATH – GOAL THEORY of Leadership – the leader can affect the performance, satisfaction, and motivation of a group through rewards, clarification of paths to goals and removal of obstacles in work performance.

LEADERSHIP STYLES:

• Directive leadership: specific advice is given to the group and ground rules and structure are established.

• Supportive leadership: good relations are promoted with the group and sensitivity to subordinates’ needs is shown

• Participative leadership: decision making is based on consultation with the group and information is shared with the group

• Achievement – oriented leadership: challenging goals are set and high performance is encouraged while confidence is shown in the groups’ ability

Contemporary leadership theories:

• Transactional

• Transformational

• Servant leadership

• Relational leadership

• Shared leadership

• Quantum leadership

• Charismatic leadership

1.Transactional Leadership Style

• The leader motivates the followers by appealing to their own self – interest

• Its principles are to motivate by means of the exchange process

• It is a contract for mutual benefit that has contingent rewards

• Uses management by exception- it is a competitive, task-focused approach that takes place in a hierarchy

4 types of behavior

• 1. Contingent reward – to influence behavior, the leader clarifies the work needed to be accomplished. The leader uses rewards or incentives to achieve results when expectations are met.

2. Management by Exception

• To influence behavior, the leader uses correction or punishment as a response to unacceptable performance or deviation from the accepted standards.

• A conservative approach whereby additional resources are applied in response to any event falling outside of established parameters.

• It seeks to minimize the opportunity for exceptions by enforcing defensive management processes

3. Active Management by Exception

• To influence behavior, the leader actively monitors the work performed and uses corrective methods to ensure the work is completed to meet accepted standards.

4.Laissez-faire leadership

• The leader is indifferent and has a “hands-off” approach towards the workers and their performance.

• The leader ignores the needs of others, does not respond the problems and does not monitor performances

2.Transformational Leadership

• The most effective and beneficial leadership behavior to achieve long-term success and improved performance– Promotes employee development– Attends to needs and motives of followers– Inspires through optimism, influences changes in

perception– Provides intellectual stimulation and encourages

follower creativity– Uses role modeling– Provides sense of direction and encourages self

management

• Transformational leaders are highly visible, and spend a lot of time communicating

• A person with this leadership style is a true leader who inspires her team constantly with a shared vision of the future.

Transactional vs. Transformational• Transactional

-Hierarchy- competitive- task focus- exchange posture- identify needs of followers- provide rewards to meet needs- exchange for expected performance- contract for manual benefits- contingent rewards- caretaker-set goals for employees- focus on day to day operations- management by exception

• Transformational– Networking– Cooperative– Process focus– Promote employee

development– Attend to needs and motives

of followers– Inspire through optimism– Influence change in perception– Provide intellectual stimulation– Encouragement of intellectual

creativity– Role model– Individualize consideration– Provide sense of direction– Encouragement of self -

management

Servant leadership

• Servant-leadership emphasizes the leader's role as steward of the resources (human, financial and otherwise) provided by the organization. It encourages leaders to serve others while staying focused on achieving results in line with the organization's values and integrity..

Ten critical characteristics of a servant leader:

• Listening

• Empathy

• Healing

• Awareness

• Persuasion

• Conceptualization

• Foresight

• Stewardship

• Commitment to the growth of people

• Building community

• 1.How is “successful” and “effective” leadership defined in the context of the Philippines?

• 2.What are the defining characteristics of successful and effective Filipino leaders in either or both public as well as private institutions?

• 3.How are such leaders formed or trained? Are successful leaders born – not made, or vice-versa?

• 4.Can successful leaders of NGO organizations be successful leaders of government or public organizations, and vice-versa?

Quantum Leadership

• Porter O’Grady and Malloch (2003) as new leadership for new age.

• They think most leaders are neither fully prepared nor equipped to change outmoded models because the foundation of their relationship concepts are based in the past.

Quantum Leadership

• Control is not the issue, rather change dominates the climate.

• The leader recognizes continual movement and change occur in reality and creativity and innovation area at the core of good work performance.

• Based on the concepts of Chaos theory

Quantum Leadership

• It matters little what you did; it only matters what outcome you produced.

• Employees become directly involved in decision making as equitable and accountable partners and managers assume more of an influential facilitative role, rather than one of control.

Charismatic Leadership

• Based on personal qualities such as charm, persuasiveness, personal power, self-confidence, extraordinary ideas, and strong (often unconventional) convictions.

• The leader’s personality arouses great affection and emotional commitment, first to the leader and secondarily to the beliefs and causes of the leaders espouses.

Relational Leadership

• Also known as Relationship – oriented leadership or Connective leadership.

• Recognizes that today we are all connected and that relationships form the cornerstone of contemporary leadership

• Purpose – to better coordinate and integrate patient care services in a caring, noncompetitive manner.

• Focus – link voluntary agencies, communities, governing groups to improve patient-centered care.

Relational leadership

• The process of developing relationships and creating connections requires the leader to:– Identify actual & potential collaborators– Communicate & sell a potential shared vision

to those in varied settings & under disparate conditions

– Describe the value each collaborator could bring to the endeavor, both to the individual & others

– Facilitate communication by sharing information, preparing for interactions & following up on communication exchanges

– Build & maintain social interaction & comfort– Define & sell roles & assignments– Track & reward contributions– Formalize an integrated effort at the right time

Shared Leadership

• Based on the empowerment principles of participative & transformational leadership

• Assumes that a well- educated, highly professional, dedicated workforce is comprised of many leaders.

• Different issues call for different leaders, or experts to guide the problem – solving process.

Shared Leadership

• Elements:– Relationships– Dialogues– Partnerships– Understanding boundaries

Shared Leadership

• Examples:– Self-directed work teams: work groups manage their

own planning, organizing, scheduling, and day-to-day work activities

– Shared governance: the nursing staff are formally organized at the service area and organizational levels to make key decisions about clinical practice standards, quality assurance & improvement, staff development, professional development, aspects of unit operations & research.

– Co – leadership : two people work together to execute a leadership role. The development of co-leadership depends on the flexibility & maturity of both individuals & such arrangements usually require a third party to provide ongoing consultation & guidance to the pair.

5 FORMS OF POWERby French and Raven’s

1. Coercive power

2. Reward power

3. Legitimate power

4. Referent power

5. Expert power

FORMS OF POWER

• ( Ability to impose the will of one person or group to bring about certain behaviors in other persons or group)

• A. Legitimate power- given to the manager by the organization because of the manager’position in the hierarchy.

• Ex: director of Nursing services, supervisor, head nurse

B. Reward power- based on the ability of the manager to control and administer rewards (e.g. promotion) to other for compliance with the leader’s orders or request.

c. Coercive power- founded on the manager’s ability to use punishment on others (e.g. reprimands) for non-compliance with the manager’s orders

D. Expert power- derived from some special ability, skill or knowledge (e.g. dialysis nurse) demonstrated by the individual.

E. Referent power- maybe based on a certain attractiveness or appeal of one person to another (e.g. the nurse who is consistently supportive or helpful). May also be based on a person’s connection or relationship with another powerful individual.

COMPONENTS OF EFFECTIVE LEADERSHIP AND

MANAGEMENT

• A. Understanding of individual strengths, weakness and potential.

• B. Knowledge of basic ingredients for leadership and management

• C. Systematic use of self to get the right things done at the right time.

THE LEVELS OF LEADERSHIP

LEVEL 1 – POSITIONPeople follow – because they have to, this is

the basic entry level of leadership. The only influence you have is that which comes with a title.

LEVEL 2 – PERMISSIONPeople follow because they want to. People

don’t care how much you know until they know how much you care.

LEVEL 3 – PRODUCTIONPeople follow because of what you have

done for the organizationLEVEL 4 – PEOPLE DEVELOPMENTPeople follow because of what you have

done for them.LEVEL 5 – PERSONHOOD People follow because of who you are and

what you represent.

DEFINITION OF MANAGEMENT

• Management can be defined as a process of coordinating actions and allocating resources to achieve organizational goals.

• An art of accomplishing things through people.

Accdg to Gulick and Urwick , management process is being served through the seven principles :

• Planning • Organizing• Staffing• Directing• Coordinating• Reporting• Budgetting

Henry Mintzberg taxonomy of Managerial Roles

1. Information Processing roles – Ex. Monitor, Disseminator and spokesperson

and are used to manage people’s information needs.

2. Interpersonal roles – Ex. Figurehead, leader and liaison and each of this is used to manage relationships with people.

3. Decision Making RolesEx. Entrepreneurs, disturbance handlers, allocator resources and negotiator. Managers take this role to make decision.

Levels of Managers

1. Low level Manager - 1st line Managers such as the Nurse manager

• they supervise others as they deliver care as well as supervising the quality of care given.

• Time is mostly spent in planning with other responsibilities such as coordinating, evaluating , negotiating and serving as a generalist

2. Middle level Manager – Often called the Director. Ex. Director of CCU

• spend less time in the supervising but still focuses in the planning and in the coordinating

3. High level Manager – Or the Executive Level. Ex. Chief Nurse Executive

• Does the planning and being the generalist are greatly expanded role function

The Changing nature of Managerial Work

• Current trends indicate that the numbers of managers, especially in the middle management in an organization suffers from downsizing.

• Those left in the management positions after a reorganization are fewer number and have taken on more responsibility over more areas. As individual nurses become more involved in managing consumers relations and consumer care, managers become managers of system rather than managers of nurses per se.

• The system they will manage include clinical systems, cost information systems and data systems on consumer satisfaction and feedback.

• This is where Leadership responsibilities will be integrated among all organizational participants who function as knowledge workers and provide their professional expertise.

• Among nurses, specialized knowledge is the practice and science of nursing used to serve patients and families.

MANAGEMENT THEORIES

The classical perspective includes three subfields of Management :

• Scientific Method

• Bureaucratic Theory

• Administrative Principles

SCIENTIFIC METHOD

Frederick Taylor, author of Principles of Scientific Management :

• focuses on the productivity• an organization is a machine to be run efficiently to

increase production• Study time and motion that emphasized efficiency and

culminated in one best way of carrying out work.• Frank Gilbreth revolutionized surgical efficiency in the

OR resulting in shorter duration that substantially reduced risks from surgery for patients at that time.

BUREAUCRATIC THEORY

• Max Weber efficiency is achieved through IMPERSONAL relations within a formal structure. Competence should be the basis for hiring and promoting an employee, and decisions should be made in an orderly and rational way based on rules and regulations.

• It is a hierarchy with clear superior-subordinate communication and relations, based on positional authority, in which orders from the top were transmitted down through the organization via clear chain of command.

ADMINISTRATIVE PRINCIPLES

• Are general principles of management that are relevant to any organization. In addition to some of the principles described as the management process.

• Added unity of command and direction . It means that a worker would get orders from only one supervisor and related work would be grouped under one manager.

• Concept of INFORMAL organization. Ex. Marketing Arm

Human Relations School of Thought

• In contrast to the science of exact procedures, rules and regulations and formal authority that characterized scientific method, the human relations espoused the individual worker as the source of control, motivation and productivity in organization.

• 1930s labor unions became stronger in advocating for the human needs of employees.

• HAWTHRONE EFFECT – Ex. The study of lightings in Hawthrone Plant :. Increased production did not only answer the study that lighting effects increased the production but also concluded the effects of being watched and receiving special attention could alter a person’s behaviour.

• The phenomena of being observed or studied could result to a change of behaviour is called the Hawthrone effect.

MOTIVATION THEORIES

• Workers output is greater when treated humanistically.

• Motivation is whatever influences our choices and creates direction, intensity and persistence in our behaviour.

• Motivation is a process that occurs internally to influence and direct our behaviour inorder to satisfy needs.

• Motivation Theories are not management Theories however they are frequently included along with management theories.

Selected content of Motivation Theories :

Maslow’s Heirarchy of Needs :

• Physiological Needs

• Safety Needs

• Social Needs

• Esteem Needs

• Self Actualization

• Accdg to Maslow, motivation begins when a need is not met

• The need for self actualization is the pinnacle of performance and achievement

TWO FACTOR THEORY

• Frederick Herzberg ( 1968) has two sets of factors associated with motivation. One set of motivation factor should be maintained to avoid dissatisfaction. Ex. Salary, Job security, working conditions, status, quality of supervision and relationships with others. Otherwise known as the MAINTENANCE OR HYGIENE FACTORS.

• The other factor is the INTRINSIC FACTOR .

Ex. Achievement, Recognition, advancement

THEORY X AND THEORY Y

• Is about two different ways to motivate or influence others based on the underlying attitudes about human nature. Each view reflects the different attitudes about the nature of humans.

Theory X :• Is that in the Bureaucratic organizations,

employees prefer security, direction and minimal responsibility. Coercion, threats or punishment are necessary because people do not like the work to be done. These employees are not able to offer creative solutions to help the organizations advance.

Theory Y

• The assumption is that in the context of the right conditions, people enjoy their work, can show self control and discipline, are able to contribute creatively and are motivated by ties to the group, the organization and the work itself.

THEORY Z

• William Ouchi based on his study of the organizations in Japan.

• Collective decision making is the hallmark of theory Z.

• Focus on long term employment that involves slower promotions and less direct supervision.

• The organization invests in its employees and addresses both home and work issues creating a path for career development.

BENNER’S 5 MODELS

1. Novice nurse. They are those practitioners who are task oriented and focused.

2. Advance beginners. They are nurses who are able to demonstrate marginally acceptable performance.

BENNER’S 5 MODELS

3. Competent nurses. They are nurses performing the same role for two to three years who have developed the ability to view their actions as part of the long-range goals set for their patients. Their conscious and deliberative planning skills promote efficiency and organization.

BENNER’S 5 MODELS

4. Proficient nurses. They are nurses who look at situations as wholes rather than a series of tasks. They have learned from their experiences the need to develop a plan of care for a patient to be guided from point A to point B and that in typical situations, a patient is expected to manifest specific behaviours to achieve specific goals.

BENNER’S 5 MODELS

5. Expert nurses. They are nurses who are expertise is so imbedded in their practice as they intuitively know what is happening with their patients.

A patient’s cardiac arrest may occur when the intuitive sense of an expert nurse is not immediately attended to. Expert Nurses strive for professional advancement who eventually become clinical specialists.

Motivational Theory

Maslow’s theory of motivation is one of the leadership in nursing.

- physiological needs

- safety needs

- belongingness needs

- esteem needs

- self-actualization/self-accomplishment

Interactional Theory

- signifies an interaction between the person and situation. It maintains that in simple reflex types of behavior the stimulus acts on the organism and elicits the response, and the organism plays no active part in the selection or interpretation of behavior.

McGregor’s Theory X and Y

• Developed by Douglas McGregor

• THEORY X – proposes that man:– lazy– Unmotivated– Irresponsible– Unintelligent and– Not interested to work

Theory X

• People will only work to fulfill the organizational goals when controlled and threatened

• People prefer to be directed, hope to avoid responsibility and are more interested in financial gain

• Presupposes that people naturally dislike work and will avoid it whenever possible

Theory Y

• Man is:– Responsible– Creative– Self – possessed– Self – directed– A problem solverThis theory encourages workers to develop

their potential as they are able to learn under proper conditions to seek and accept responsibility

dr. william ouchi

THEORY Z

• Theory Z 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.

Theory Z

• 7 basic criteria• Hard “S”• 1. superordinate goals – those which hold

the organization together• 2. strategy – method of doing things• 3. structure – concern with the physical

plant and facilities• 4. systems – coherence of all parts of the

organization for a common goal

Theory Z

• Soft “S”5. Staff – concern for the right people to do their

job

6. Skills – developing and training people

7. Style – the manner of handling peers, subordinates and superiors

Theory Z

• Important elements:

• - collective decision making

• - long term employment

• - slower but more predictable promotions

• - indirect supervision

• - holistic concern for employees