Companies that choose to use Theory Z for leadership attempt to balance the cultures of American business concepts with that of Japanese business culture. Businesses today often struggle to find the perfect balance, but in many cases, companies successfully using Theory Z have gained tremendously in profits, as well as employee retention. Theory Z allows the company to offer incentives to help with employee retention, but at a limited cost since the Japanese culture implemented in Theory Z focuses on building intimate and devoted relationships with employees. colleagues and management to develop lifelong commitments to an organization (Sullivan, 1983). .Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get an original essay Theory Z also focuses on the concept and theory that the employee will “do the right thing.” This is accomplished by ensuring that there are detailed policies and work process flows. In this type of environment, employees feel like they are not being micromanaged and can accomplish their work with minimal supervision. This type of leadership style has been shown to provide a higher level of productivity than companies that have used other leadership styles (England, 1983). Many people wonder if one form of leadership is better than another for ensuring business success. Many forms of leadership have been tested over the years, and several styles have found success. Studies have shown that Theory Z is the management style that has been used in the creation of many large, highly successful companies that have large profit margins, but also have the best employee retention rates and the highest employee loyalty. their employees (D'Andrade, 1986).In America, the concept of leadership based on Theory Z is used successfully, but it is not as widely accepted here as in Japanese culture. There are several reasons for this, but the concept of “involved workers” is essential. This goes against what many American leaders have been taught. The Theory Z culture focuses on unspecialized career paths, slow assessments, and slow promotion strategies. This is not how American leaders were taught and it is an adjustment they must make to succeed in this type of management structure. American managers must examine this approach and begin to integrate it into their management style for success if their company is to fully utilize and reap the benefits of Theory Z (England, 1983). In the United States, large companies too often tend to use the bureaucratic hierarchy that has become more prevalent in recent years, and as Theory Z has been introduced, this hierarchy is becoming more and more unnecessary. (Ouchi, 1993). Leaders learn to leverage the success of Japanese companies that have used this leadership style for years and embrace the success it can bring. The final key point of the Theory Z leadership style is that it requires the company to move from a people-centered technology approach, to a people-centered culture (Ouchi, 1981). Without this, Theory Z is not used to its full potential. It is believed that productivity gains are achieved by focusing on the people in a company, not through strict leadership where decisions are based on the opinion of one person in senior management, and surely not because technology pushed it. Theory Z focuses on the fact that, 1992).