I'd advise you to have a look at the library Moment.js.
You can parse the input string with it as it is explain in the library doc.
Add the library to your <head>
like: <script type="text/javascript" src="[If not in the folder containing your html file, specifiy your path beneath the folder containing it + "/"]moment-with-locales.min.js"></script>
Then in your <body>
try:
<script type="text/javascript">
var test = moment("2016-10-01T16:00:00Z").format('DD/MM/YYYY hh:mm:ss A');
alert("test: " + test);
</script>
It will display: "Test: 01/10/2016 06:00:00 PM"
It shows 6pm because I am located at UTC+2 hours.