In this section:

1. 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

2. 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.

3. Why It’s Important Becoming familiar with modern management principles will help you understand how businesses function in today’s environment.

4. Key Terms • Theory X •Decentralization • Theory Y • Total quality management (TQM) • Centralization • Theory Z

5. 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.

6. 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. .

7. Management in a Japanese Type Organization

8. Management in an American Type Organization

9. Fig 2-1 • Management in a Theory Z Type Organization

10. 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.