Prisons are labor intensive public service organizations. In prisons, four general types of labor or work are performed: custody/control functions, treatment/rehabilitation functions, organizational support functions, and administrative management functions. The labor intensive perspective brings into focus the linkage between the work climate created throughout the prison organization and its influence on worker productivity and efficiency, regardless of whether the worker is a paid employee, a volunteer, an inmate, or contract personnel. Prisons, like other social service organizations, are faced with the challenge of increasing productivity with fewer workers and reduced budgets. Traditional bureaucratic means of reward -pay increases, promotions, travel, and conference selections -- are not available to prison managers as worker motivators. Noneconomic alternative incentives have to be developed to motivate increased worker productiveness. Managment Theory Z provides a framework within which managers and administrators can develop an effective and efficient work climate for line correctional employees to deliver custody, treatment, and support services to inmates and ultimately to the public. In turn, line employees create a climate within which inmate labor is expended in activities ranging from laundry to medical technical services. Management Theory Z addresses the labor intensive nature of prison work, and its assumptions are adaptable to prison management. The theory is based on management's concern about productivity, management's concern for workers as people, and concern for the work organization as a total social and cultural system. The wholistic element of the theory is characterized as an informal employer-employee social contract, emphasizing shared decisionmaking. Thirteen footnotes are provided. (Author summary modified)