Hierarchies, clans, and theory Z: A new perspective on organization development

The notion that industrial organizations must, of necessity, be structured as bureaucratic hierarchies is challenged. There are at least 2 other ways to organize people into a cooperative effort: 1. markets, in which price becomes the controlling influence, and 2. clans, in which cooperation results from commonly shared values. The latter concept gives rise to "Type Z organizations." Companies that exhibit Type Z characteristics include Kodak, Proctor & Gamble, Hewlett-Packard, IBM, and Cummins Engine Co. Type Z organizations have managed to stop the rapid movement and turnover that apparently characterizes many other industrial organizations.