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 Y
Theory 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 47
Japanese 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?
AdvantagesWorking towards a
common goal
Quicker problem solving
Disadvantages
Team members lack
time to be highly
specialized
Smoother transitions as
team members leave or
are replaced
May not feel empowered
in a group
All lead to reducing costs
Lose sense of
independence
Personality conflicts
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 Z
Integrates Japanese and
American business
practices
Answer