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Chapter 2: The Management Movement

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 Different philosophies developed on how best to manage employees. Theory X.

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Chapter 2: The Management Movement

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

  2. Empowering Employees • 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

  3. Theory X • 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

  4. Theory Y • Assumes that people find satisfaction in their work • 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 • Employees given more freedom and allowed to make mistakes

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

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

  7. 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 • Focuses on totally satisfying both customers and employees • Deming’s 14 points

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

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

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

  11. Japanese, American, and Theory Z Organizations

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