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: Theory Y Assumes: People are lazy Will avoid working if possible Strict rules need to be imposed 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 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 encouraged 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? Team members lack time to be highly specialized May not feel empowered in a group Personality conflicts Lose sense of independence Group think Working towards a common goal Quicker problem solving Smoother transitions as team members leave or are replaced All lead to reducing costs

Theory Z

Theory Z Type Organization Long term employment Group decision making Individual responsibility Slow evaluation and promotion Holistic concern, including family

Theory Z Developed by William Ouchi in the 1980s Theory Z Integrates Japanese and American business practices

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