The Ouchi Theory Z management theory states that:

The Ouchi Theory Z management theory emphasizes the importance of employee involvement as crucial to enhancing productivity within an organization. According to this theory, when employees are actively involved in decision-making processes and feel a sense of ownership over their work, they are more likely to be motivated, committed, and productive.

This concept is based on the idea that fostering a strong sense of community, supporting teamwork, and encouraging participative management can lead to a more satisfied and effective workforce. The focus on collaboration and shared responsibility aligns with the broader principles of Theory Z, which advocates for holistic approaches to management that prioritize employee well-being and fulfillment.

In contrast, centralized decision-making would limit the input and engagement of employees, adversely affecting morale and motivation. The notion of only partially utilizing employee potential undermines the foundational premise of Theory Z, which is to harness and maximize that potential through full involvement. Thus, while involvement fosters productivity, other choices do not align with the core principles of Theory Z management.