Which of the following is NOT a benefit of employing Theory Z in organizations?

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Theory Z, developed by William Ouchi, emphasizes a collaborative management style that fosters employee involvement, long-term employment, and strong organizational culture. The benefits associated with the implementation of Theory Z are closely tied to enhancing employee morale, loyalty, and overall satisfaction within the workplace.

When looking at the benefits typically associated with this theory, options A, B, and D align well with its core principles. Reduction in employee turnover is achieved because Theory Z promotes a stable work environment where employees feel secure and valued. There is also a significant increase in employee commitment, as the model encourages participation in decision-making and acknowledges employee contributions. Furthermore, job satisfaction is notably improved as employees typically experience a greater sense of belonging and fulfillment in their roles.

In contrast, the enhancement of formal control measures does not fit within the framework of Theory Z. This approach is more centered on trust and collaboration rather than relying on strict hierarchies and formal controls, which can create an atmosphere of rigidity and constrain creativity. Therefore, unlike the other benefits, enhancing formal control measures does not reflect the objectives or positive outcomes sought through the application of Theory Z in organizations.

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