Theories

of Management

Dr. mouzna mardini

2016-2017
 Chapter Seven

Total Quality Management

McGraw-Hill/Irwin
Contemporary Management, 5/e
Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved.
The Evolution of Management Theory
 Theory Z

William Ouchi, a management researcher

developed this new theory of
management in the 1980s
Theory Z is a business management
theory that integrates Japanese and
American business practices. The
Japanese business emphasis is on
collective decision making, whereas the
American emphasis is on individual
responsibility.
 Japanese Type Organization

1. Lifetime employment
2. Collective decision making
3. Collective responsibility
4. Slow evaluation and promotion
5. Implicit (understood, implied) control
mechanisms
6. Non-specialized career path
7. Holistic concern for employee as a
person
 American Type Organization

1. Short-term employment
2. Individual decision –making
3. Individual responsibility
4. Rapid evaluation and promotion
5. Explicit (clear, precise, unambiguous) control
mechanisms
6. Specialized career path
7. Segmented concern for employee as an
employee.
 Theory Z Type Organization

1. Long-term employment
2. Consentual, participative decision-
making
3. Individual responsibility
4. Slow evaluation and promotion
5. Implicit, informal control with explicit,
formalized measures
6. Moderately specialized career path
7. Holistic concern, including family
 TQM—Total Quality Management

• Result of study conducted in the 1950s by W.

Edwards Deming who began studying how
companies ensure that the products they
produce are not defective. He came up with a
mathematically based approach to quality control
that became known as Total Quality
Management, which is a system of management
based on involving all employees in a constant
process of improving quality and productivity by
improving how they work. This approach
focuses on totally satisfying both customers and
employees.
 TQM
Deming’s Fourteen Points
1. Create consistent purpose for improving
products and services in order to remain
competitive.
2. Adopt a new philosophy. We are now living
in a new economic age.
3. Stop depending on mass inspection.
Require instead that quality is built in.
4. Consider quality as well as price in
awarding business.
5. Constantly improve the system of
production and service.
6. Institute a vigorous program of job training.
 Deming’s 14 points cont’d

7. Adopt and implement leadership. Focus on

quality, not productivity.
8. Drive out fear so that everyone may work
effectively.
9. Break down barriers between departments.
10. Eliminate numerical goals, posters, slogans,
for the work force that ask for new levels of
productivity without providing new methods.
11. Eliminate work standards that prescribe
numerical quotas.
 Deming’s 14 points cont’d

12. Remove barriers that stand between the hourly

worker and his or her right to pride of
workmanship.
13. Encourage education and self-improvement for
everyone.
14. Create a structure in top management that will
work every day to achieve the above 13 points.
Most companies that have adopted TQM found that
the performance of their companies improved.
 International Management

Thailand
• The social culture of Thailand has given
rise to highly centralized corporations with
strict lines of authority. Self-managed
teams would not be a viable management
style because workers are used to taking
direction from leaders whose authority is
absolute and based on status.
 Japanese Management Practices

Japanese managers encourage more

employee participation in decision making.
Japanese managers show deeper concern for
the personal well-being of their employees.
Rather than present their workers with
demands, Japanese managers tend to
facilitate decision making by teams of
workers.
Japanese Business Practices cont’d

Japanese business practices have been

successfully exported to the United
States at Honda’s plant in Marysville,
Ohio. Unlike most American plants,
where there is a clear distinction
between workers and managers, all
Honda employees are empowered to
make decisions.
Japanese Business Practices cont’d

• As a result, Honda employees are energetic

and committed to producing high-quality
products. They turn out one Honda Accord
per minute. This high level of productivity
is attributed to several innovative (new,
original, groundbreaking) management
practices, where workers are organized by
teams rather than by function.

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