Goals Chapter 2.2

Explain the principles of total quality management.

Identify the principles of Theory X and Theory Y management styles.

Describe Japanese management concepts and the ideas behind Theory Z.

The Main Idea

As organizations grew in size and complexity, new styles and methods of management began to emerge. Different philosophies developed oh how best to manage people.

Theory X and Theory YTheory X Assumes:

People are lazy

Will avoid working if possible

Strict rules need to be imposed

Theory Y Assumes:

People find satisfaction in their work

Right environment = people will be productive

Encouragement = creative and great ideas

Which company uses Theory X or Y?

Does management have to be just Theory X or Theory Y? Can we have an Theory XY?

Partner up!

Develop a skit where you and your partner are using Theory X, Theory Y, or Theory XY

Class will guess which you are using

Be creative! Have fun!

Centralization vs. Decentralization

• Companies using centralization often ran into problems

• Henry Ford almost destroyed the company!

• Hired secret police agents to spy on his senior aides

Centralization The concentration of power among a few key decision makers.

Centralization vs. Decentralization

• Allows a company to make better use of resources

• Gives managers more freedom to make important decisions

Decentralization Decisions are made by managers at various levels w/in an organization

W. Edwards Deming

Used math to help solve problems of quality control

What is quality control?

Total Quality Management • Widely adopted by

many American businesses

• Focuses on totally satisfying both customers and employees

Total Quality Control (TQM)Involves all employees in a constant process of improving quality and productivity by improving how they work.

Japanese Management Practices pg 47Japanese managers encourage more employee participation in decision making

Japanese managers showed deeper concern for the workers

Traditional assembly-line plant, workers are organized by function.

Honda workers are organized by teams, thus skilled in various aspects of production

What are some advantages and disadvantages of employees working in teams?Advantages-

Working towards a common goal

Quicker problem solving

Smoother transitions as team members leave or are replaced

All lead to reducing costs

DisadvantagesTeam members lack time to be highly specialized

May not feel empowered in a group

Personality conflicts

Lose sense of independence

Group think

Theory Z

Theory Z Type Organization

1. Long term employment

2. Group decision making

3. Individual responsibility

4. Slow evaluation and promotion

5. Holistic concern, including family

Theory Z

• Developed by William Ouchi in the 1980s

Theory ZIntegrates Japanese and American business practices

Answer