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 QualityDeming
W. Edwards Management
came up with a mathematically
based approach to quality control that became known as total
W. Edwards
quality management Deming came up
(or TQM). TQMwithisaamathematically
system of based approach
to quality control
management basedthat
onbecame known
involving as total quality
all employees management (or
in a constant
TQM).
process TQM is a system
of improving of management
quality basedbyonimproving
and productivity involving all
employees in a constant
how they work. . 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 and Idea Review

1. Identify five of Deming’s Fourteen Points.

2. 1.Describe
Identifythe difference
five between
of Deming’s Theory
Fourteen X and Theory Y.
Points.
3. 2.List three ways
Describe in which Japanese
the difference betweenbusiness
Theory Xpractices differY.from
and Theory
traditional American practices.
3. List three ways in which Japanese business practices
differ from traditional American practices.

Copyright © Glencoe/McGraw-Hill Slide 10 of 10