Principles of Hotel Management

participate in decision-making.
Theory Z suggests that there should be non-specialised
career paths. The career paths should involve multiple function
experience. For this emphasis should be laid on job rotation and
broad-based training. This, in turn, gives an employee a better
feel for the entire organisation.
Theory Z suggests that there should be holistic concern for
people. Such holistic concern should extend beyond the work-
place and reflect genuine concern for the total employee
personality including the employee’s family, hobbies, personal
ambition and so on.
Thus, theory Z provides a new dimension of motivation of
employees. It is not merely a motivational technique but it
provides a complete theory of management. It calls for mutual
trust and cooperation between managers and workers.
Theory Z has been successfully employed by the Japanese
companies operating in U.S.A. The process of implementing
Theory Z in India has already been started.
Maruti Udyog Ltd., a company with Japanese collaboration,
is one such company where theory Z is being applied. For this
purpose, work-place has been designed on the Japanese pattern.
A common canteen has been provided for all the employees
irrespective of their position in the company. Similar uniform has
been introduced for all. All this has been done to avoid class
or group feelings among the employees and to remove status
difference among the employees.
Theory Z is considered a comprehensive theory or philosophy
of management. It involves a complex amalgamation of

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Principles of Hotel Management
management principles and practices for obtaining cooperation
of the employees. It provides a complete transformation of
motivational aspect of employees. But it suffers from the following
limitations of drawbacks.
The provision for life-time employment seems to be difficult
for two reasons : (i) No employer would like to retain an employee
who is less productive. (ii) No employee will hesitate to an
organisation if there is a better chance of employment.
Theory Z emphasises on common culture in organisations
which is very difficult. People come from different backgrounds
and environments and with different religion, habits, languages
etc. All these create barriers in developing common culture.