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The Theory Z Turnaround of a Public Agency

1982; Wiley; Volume: 42; Issue: 1 Linguagem: Inglês

10.2307/976093

1540-6210

Ronald Contino, Robert M. Lorusso,

Outsourcing and Supply Chain Management

How does a manager, recently given the charge of a public agency on the threshold of collapse, restore fiscal and operational health to that agency? This was the question confronting the new director of fleet maintenance and repair in New York City's Department of Sanitation in January of 1979. The answer, in part, has been to introduce a new set of public management initiatives which dramatically changes the way a public organization is traditionally managed. These initiatives, involving every employee in every level of the organization, have not only halted an almost daily procession of crises and emergencies, but have also transformed the department's fleet maintenance and repair system into one of the most reliable and consistent operations in New York City's government. The new approach is highlighted by a recently formulated management theory just beginning to be practically applied in private industry around the country. It is known as Z, named by its originator William Ouchi,1 and it calls for major innovations in the decisionmaking process in a large organization. Since the management of the department's Bureau of Motor Equipment (BME) has been utilizing this approach (subsequently called Z) along with other techniques previously thought useful only in the private sector, several encouraging implications take shape for those managers in all levels of government faced with a similar dilemma. The real effect Theory Z has had on this system cannot be fully appreciated until the extent of BME's present operations and past problems is revealed.