A General Policy Systems Theory is outlined and its application at a university in regard to governance in the face of retrenchment is described. The way that this model of nonrigorous but holistic research supports the Purpose, Target, Results (PTR) strategy and is in turn more useful than either operations research/management or science/systems analysis is addressed. Additionally, Ouchi's Theory Z is elaborated in a general systems theory model. Case material shows how the approach can be applied to problems of consultation between the president and the managerial executive and operating or contact level professionals. The following eight tasks important to problem-solving are identified: realize the problem in the situation, clarify goals, describe trends, analyze conditioning factors, project future development, invent and consider policy alternatives, implement new policies, and conduct ongoing evaluation research. These steps, which comprise the policy systems approach represent a more complete version of PTR, but without the targets. The six major components of Theory Z are as follows: long-range planning, collective decision making, a more equalitarian workplace, reciprocal employer-employee loyalty, collective responsibility, and long-range productivity and company effectiveness. The theory involves a holistic concern for the company and its employees as whole human beings and it attempts to promote holistic relationships among employees at all levels of the bureaucracy. The case study on retrenchment is diagramed in terms of the dynamics. Ways to encourage collective cooperation in university governance are also discussed. A bibliography is appended. (SW)