2. Copyright © Glencoe/McGraw-Hill Slide 1 of 10 BUSINESS MANAGEMENT Real-World Applications & Connections GLENCOE Section 2.2 The Development of Modern Management In this section: In the later 1900s, new ways of managing workers emerged. This section discusses : Empowering Employees The Emphasis on Quality and Teamwork Japanese Management Practices

3. Copyright © Glencoe/McGraw-Hill Slide 2 of 10 BUSINESS MANAGEMENT Real-World Applications & Connections GLENCOE Section 2.2 The Development of Modern Management What You’ll Learn The principles of total quality management. The principles of Theory X and Theory Y. Japanese management concepts and the ideas behind Theory Z.

4. Copyright © Glencoe/McGraw-Hill Slide 3 of 10 BUSINESS MANAGEMENT Real-World Applications & Connections GLENCOE Section 2.2 The Development of Modern Management Why It’s Important Becoming familiar with modern management principles will help you understand how businesses function in today’s environment.

5. Copyright © Glencoe/McGraw-Hill Slide 4 of 10 BUSINESS MANAGEMENT Real-World Applications & Connections GLENCOE Section 2.2 The Development of Modern Management Key Terms Theory XDecentralization Theory Y Total quality management (TQM) Centralization Theory Z

6. Copyright © Glencoe/McGraw-Hill Slide 5 of 10 BUSINESS MANAGEMENT Real-World Applications & Connections GLENCOE Section 2.2 The Development of Modern Management Theory X and Theory Y Theory X—Assumes workers will avoid working. Managers must impose strict rules and make all important decisions. Theory Y—Assumes that people find satisfaction in their work given the proper working environment. Managers give employees quite a bit of freedom and let workers make mistakes. Theories X and Y—Most companies combine elements of both theories.

7. Copyright © Glencoe/McGraw-Hill Slide 6 of 10 BUSINESS MANAGEMENT Real-World Applications & Connections GLENCOE Section 2.2 The Development of Modern Management Total Quality Management W. Edwards Deming came up with a mathematically based approach to quality control that became known as total quality management (or TQM). TQM is a system of management based on involving all employees in a constant process of improving quality and productivity by improving how they work..

8. Copyright © Glencoe/McGraw-Hill Slide 7 of 10 BUSINESS MANAGEMENT Real-World Applications & Connections GLENCOE Section 2.2 The Development of Modern Management Management in a Japanese Type Organization

9. Copyright © Glencoe/McGraw-Hill Slide 8 of 10 BUSINESS MANAGEMENT Real-World Applications & Connections GLENCOE Section 2.2 The Development of Modern Management Management in an American Type Organization

10. Copyright © Glencoe/McGraw-Hill Slide 9 of 10 BUSINESS MANAGEMENT Real-World Applications & Connections GLENCOE Section 2.2 The Development of Modern Management Fig 2-1 Management in a Theory Z Type Organization

11. Copyright © Glencoe/McGraw-Hill Slide 10 of 10 BUSINESS MANAGEMENT Real-World Applications & Connections GLENCOE Section 2.2 The Development of Modern Management Fact Idea and Review 1.Identify five of Deming’s Fourteen Points. 2.Describe the difference between Theory X and Theory Y. 3.List three ways in which Japanese business practices differ from traditional American practices.