Future Business Leaders of America (FBLA) Business Management Practice Test

Which of the following best represents the idea expressed in Theory Z?

1. Management should be hands-off with little employee input.

2. Employees should share in decision-making and responsibilities.

3. Strict rules are necessary to enhance performance.

4. Efficiency is the only focus.

The correct answer is: Employees should share in decision-making and responsibilities.

Theory Z, developed by William Ouchi, emphasizes the importance of employee involvement in the decision-making process and shared responsibilities within the workplace. This approach fosters a sense of ownership and belonging among employees, leading to increased job satisfaction and productivity. By promoting collaboration and collective responsibility, organizations can create a more cohesive and motivated workforce, which aligns well with the principles of Theory Z. This perspective contrasts sharply with the notion of a management style that is hands-off with minimal employee input, which can lead to disconnection and disengagement. The idea that strict rules are necessary may instill compliance, but it does not nurture the innovation or engagement that Theory Z champions. Efficiency alone fails to consider the human elements that drive a successful and sustainable work environment, which is central to the collaborative ethos of Theory Z.