GLENCOE
BUSINESS MANAGEMENT
Real-World Applications & Connections
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
Copyright © Glencoe/McGraw-Hill
Slide 1 of 10
GLENCOE
BUSINESS MANAGEMENT
Real-World Applications & Connections
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.
Copyright © Glencoe/McGraw-Hill
Slide 2 of 10
GLENCOE
BUSINESS MANAGEMENT
Real-World Applications & Connections
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.
Copyright © Glencoe/McGraw-Hill
Slide 3 of 10
GLENCOE
BUSINESS MANAGEMENT
Real-World Applications & Connections
Section
2.2
The Development of Modern Management
Key Terms
• Theory X
•Decentralization
• Theory Y
• Total quality management (TQM)
• Centralization
• Theory Z
Copyright © Glencoe/McGraw-Hill
Slide 4 of 10
GLENCOE
BUSINESS MANAGEMENT
Real-World Applications & Connections
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.
Copyright © Glencoe/McGraw-Hill
Slide 5 of 10
GLENCOE
BUSINESS MANAGEMENT
Real-World Applications & Connections
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. .
Copyright © Glencoe/McGraw-Hill
Slide 6 of 10
GLENCOE
BUSINESS MANAGEMENT
Real-World Applications & Connections
Section
2.2
The Development of Modern Management
Management in a Japanese Type Organization
Copyright © Glencoe/McGraw-Hill
Slide 7 of 10
GLENCOE
BUSINESS MANAGEMENT
Real-World Applications & Connections
Section
2.2
The Development of Modern Management
Management in an American Type Organization
Copyright © Glencoe/McGraw-Hill
Slide 8 of 10
GLENCOE
BUSINESS MANAGEMENT
Real-World Applications & Connections
Section
2.2
The Development of Modern Management
Management in a Theory Z Type Organization
Fig 2-1
Copyright © Glencoe/McGraw-Hill
Slide 9 of 10
GLENCOE
BUSINESS MANAGEMENT
Real-World Applications & Connections
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.
Copyright © Glencoe/McGraw-Hill
Slide 10 of 10