APPROACHES TO

DESCRIBING
ORGANIZATIONAL
CULTURE
 THE OUCHI FRAMEWORK

• One of the first researchers on focus explicity on analyzing the culture of a limited group
of firms was William G. Ouchi analysed the organizational culture of three groups of firms
he characterised as (1) typical U.S. firms, (2) typical Japanese firms, and (3) Type Z U.S.
firms.
COMMITMENT TO EMPLOYEE

• According to ouchi typical Japanese and type Z US firm share the cultural value of keeping
employees.
• A person who working in a Japanese firm usually has a virtual guarantee that he or she will
not be fired
• In type Z U.S. companies this cultural value is manifested in a committed so called bu ouchi
“long-term employment”
• Under the japanese system of lifetime employment- Employees usually cannot be fired.
• Under the US system employee and manager can be fired, but only if they are not performing
acceptably
EVALUATION

• Appropriate evaluation of worker and management is thought to take a very long time up
to ten years and requires a qualitative and quantitive information about performance
• Promotion in these firms is relatively slow and promotion decision are made only after
the interview with many people who had contact with.
CAREERS

• Ouchi next observe that the careers are most valued in japanese and type Z US firm
span multiple functions.
• In Japan- this value had lead to very broad careers paths which may lead to employees
gaining experience in sox or seven distinct business functions
• In US – is considerably narrower
CONTROL

• Most Japanese and type Z firms assume that control is execercised through informal,
implicit mechanism
DECISION MAKING

• Japanese and type Z U.S firms have a strong cultural expectation that decision making
occurs in group and is based in principles of full information sharing and consensus
RESPONSIBILITY

• In Japan strong cultural norms support collective responsibility; that is the group as a
whole rather than a single person
• In Type Z US firms individually take the responsibility
CONCERN FOR PEOPLE

• In japanese firms and type Z firms the cultural value that dominates is holistic concern
for workers and manager
• Holistic Concern- extend concern for a person simply to workers or manager like there
hobbies & etc.
THEORY Z AND PERFORMANCE

• Ouchi argued that the cultures of Japanese and Type Z firms help them outperform
typical U.S firms.
• Example: Toyota imported and management styles.