1. 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.

2. 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.

3. 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

4. Which company uses Theory X or Y?

5. 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?

6. 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!

7. 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.

8. 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

9. W. Edwards Deming Used math to help solve problems of quality control
What is quality control?

10. 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.

11. 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

12. 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

13. Theory Z

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

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

17. Answer