Chapter 2: The Management Movement Section 2.2: The Development of Modern Management

Empowering Employees As organizations grew in size and complexity, new styles and methods of management began to emerge As organizations grew in size and complexity, new styles and methods of management began to emerge Different philosophies developed on how best to manage employees Different philosophies developed on how best to manage employees

Theory X Assumes that people are basically lazy and will avoid working if they can Assumes that people are basically lazy and will avoid working if they can Managers impose strict rules and make sure that all important decision are make only by them Managers impose strict rules and make sure that all important decision are make only by them

Theory Y Assumes that people find satisfaction in their work Assumes that people find satisfaction in their work Managers believe that people will work productively if put in the right environment Managers believe that people will work productively if put in the right environment People are creative and will come up with good ideas if encouraged to do so People are creative and will come up with good ideas if encouraged to do so Employees given more freedom and allowed to make mistakes Employees given more freedom and allowed to make mistakes

Centralization vs. Decentralization Centralization Centralization The concentration of power among a few key decision makers The concentration of power among a few key decision makers Decentralization Decentralization Process by which decisions are made by managers at various levels within an organization Process by which decisions are made by managers at various levels within an organization

Total Quality Management W. Edwards Deming used mathematics to help solve problems of quality control W. Edwards Deming used mathematics to help solve problems of quality control Studied how companies ensure that the products they produce are not defective Studied how companies ensure that the products they produce are not defective Came up with a mathematically based approach to quality control Came up with a mathematically based approach to quality control Total quality management (TQM) Total quality management (TQM)

Total Quality Management TQM is a system of management based on involving all employees in a constant process of improving quality and productivity by improving how the work TQM is a system of management based on involving all employees in a constant process of improving quality and productivity by improving how the work Focuses on totally satisfying both customers and employees Focuses on totally satisfying both customers and employees Demings 14 points Demings 14 points

Applying TQM Examples: Examples: A large Silicon Valley computer company A large Silicon Valley computer company Motorola Motorola General Electric General Electric Burger King Burger King

Japanese Management Practices Managers... Managers... encouraged more employee participation in decision making encouraged more employee participation in decision making showed deeper concern for the personal well-being of their employees showed deeper concern for the personal well-being of their employees tended to facilitate decision making by teams of workers tended to facilitate decision making by teams of workers

Theory Z William Ouchi, management researcher William Ouchi, management researcher Integrates Japanese and American business practices Integrates Japanese and American business practices Japanese emphasis on collective decision making and concern for employees Japanese emphasis on collective decision making and concern for employees American emphasis on individual responsibility American emphasis on individual responsibility Johnsonville Foods Johnsonville Foods

Japanese, American, and Theory Z Organizations