Japanese style of management

1. Japanese style of management Prepared by Andrews

2. Snapshot of japanese culture Self-Awareness, the Group, and Conformity One of the most homogenous nations in the world Strongly aware and proud of their country High on fashion and technology “Islander” mentality Relationships take foremost priority, reflects in business too Hard work is a given, not a exception

3. japanese management?? Japanese companies, like Japanese society, are hierarchically organized with individuals knowing their position within a group and with regard to each other

4. japanese management features Life time employment Collective decision making 1] Ringi-sei - The circulation of consultative memorandums around a company in order to achieve consensus. 2]Information flow from the bottom of the company to the top. 3]Most policies originate at the mid-level management 4]Top Management plays only a “supervisory” and “encouraging” role. Collective responsibility Slow evaluation and promotion Implicit control mechanisms Non specialized career path High self disciplined Holistic concern for employee as a person

5. WHAT ARE THE KEY ELEMENTS Centralized management control Strong head office/subsidiary manager interpersonal relations Multiple locations Business strategy Single product focus Minimize costs of production Maintain consistently high quality output at all factories through standardization of best work practices & procedures Diversify market segments, geographic markets, & production location

6. STRENGTHS OF STRATEGY & STRUCTURE Qualified senior management Low costs of production Quality control Diversified & strong market positions in established & growing markets Good reputation – early leader in small motors Good fit between organization structure & competitive environment

7. WEAKNESSES OF STRATEGY & STRUCTURE Limited scope for continued expansion with existing managerial capacity Relative difficulty in transferring Japanese management style across cultures continued growth will be difficult; long term problem is new competitors allowed to establish themselves or if existing competitors were allowed to grow in strength

8. MODEL OF JAPANESE MANAGEMENT Hatvany and Pucik (1981) offer a model of Japanese management in which they define three interrelated strategies: The authors assert that these general strategies are translated into specific management techniques including Job rotation and slow promotion; Evaluation of attributes and behavior; Emphasis on work groups; Open communication; Consultative decision making; and concern for employee.

9. Philosophy of japanese management Fully satisfaction of customer ’s needs Achieve employee's fulfillment Slow and careful way of implementing Willingness to any activity if necessary Zero-defect theory “Rom was not built in a day” approach

10. COMMON BELIEF Belief: Japanese management system is so unique that it cannot be easily transferred overseas because these processes of management are culture bound

11. SWOT ANALYSIS STRENGHTS: Closer relationships Non-competition among employees C o nsensus decision making WEAKNESSES: Slow promotion syst e m High training costs No motivation OPPORTUNITIES: Prefering personality to education Challenge in time of crisis Tom Bata ’s rotating system THREATS: Scope of company Nature of work Cultural differences

12. HUMAN RESOURCE PRACTICES IN JAPAN FOR MANAGERS High wages based on seniority (including substantial bonuses) Structured managerial career paths Employment security (for regular employees) Company-sponsored welfare systems (I.e. subsidized housing, recreational facilities, etc.) Wide involvement of middle management in decision making

13. Lean management lean management is the development of the problem solving capabilities of the entire workforce allocating specific categories of problems to each layer of the organization. leader is less focused on problem solving, high focus on building problem solving muscle of the workforce

14. Ten Principles of Lean Management Eliminate waste Minimize inventory Maximize flow Pull production from customer demand Meet customer requirements Do it right the first time Empower workers Design for rapid changeover Partner with suppliers Create a culture of continuous improvement (Kaizen)

15. OPERATIONS/PRODUCTION MANAEMENT PRACTICES in Japan The operations or production management practices of Japans companies has some specific characteristics quite different from traditional or western management system. Just in time system Subcontracting Quality control Kaizen approach

16. just-in-time system an integrated set of activities designed to achieve high-volume production using minimal inventories of raw materials, finished goods & work in process. 1] Management philosophy : …Nothing produce until needed. 2] Encompasses the successful execution of all production activities required from design to delivery of products 3] Common sense based/simple techniques

17. subcontracting Large companies, particularly in manufacturing sector, rely heavily on a regular subcontracting system. To secure punctual and regular supply of quality parts and semi finished products from subcontractors at various levels, large companies provide smaller ones with technical, managerial and financial assistance in various forms. This way, the large and small companies need not compete and contract for every supply and purchase. Mutual trust is the basis of their long-term transactions.

18. tqm T TOTAL Q QUALITY M MANAGEMENT

19. “T” TOTAL ALL FUNCTIONS / AREAS / DEPTTS. ALL ACTIVITIES ALL EMPLOYEES ALWAYS AT ALL PLACES

20. “Q” QUALITY QUALITY DOES NOT MEAN MERELY QUALITY OF PRODUCT, SERVICE & WORK BUT QUALITY OF A COMPANY WHAT IS QUALITY OF A COMPANY ? CONSTANT AND CONTINUAL APPROPRIATE PROFIT GAIN EMPLOYEE SATISFACTION (INCLUDING SELF REALISATION) CUSTOMER SATISFACTION SHAREHOLDER SATISFACTION AFFILIATE COMPANY SATISFACTION, AND SOCIAL SATISFACTION

21. “M” MANAGEMENT MEANS MANAGEMENT WHICH ACTUALLY MEANS AN INTEGRATED AND CONTINUAL ACTIVITY TO RAISE QUALITY OF A COMPANY AT COMPANY-WIDE LEVEL.

22. what is total quality management?? TQM IS A COST EFFECTIVE SYSTEM FOR INTEGRATING THE CONTINUOUS QUALITY IMPROVEMENT EFFORTS OF PEOPLE AT ALL LEVELS IN THE ORGANISATION TO DELIVER PRODUCTS AND SERVICES WHICH ENSURE CONSUMER SATISFACTION

23. Kaizen approach [CONTINUOUS IMPROVEMENT] Policy of constantly introducing small incremental changes in a business in order improve quality It assumes that employees are the best people to identify room for improvement as they practically deals with operations Small improvements needs less capital investments

24. innovation kaizen Adaptability Teamwork (systems approach) Generalist-oriented Attention to details people-oriented Information: open, shared Cross-functional orientation Build on existing technology Cross-functional organization Comprehensive feedback Creativity Individualism Specialist-oriented Attention to great leaps Technology-oriented Information: closed, proprietary Functional (specialist) orientation Seek new technology Line + staff Limited feedback

25. Western a nd Japanese product perceptions Technology Level Preferred Process Product Western perceptions Japanese perceptions High technology Technology- oriented innovation Innovative product KAIZEN-oriented product People- oriented + KAIZEN Low technology + KAIZEN

26. Corporate social responsibility [csr] Corporate Social Responsibility (CSR) is a concept which encourages organizations to consider the interests of society by taking responsibility for the impact of the organization's activities on customers, employees, shareholders, communities and the environment in all aspects of its operations. This obligation is seen to extend beyond the statutory obligation to comply with legislation and sees organizations voluntarily taking further steps to improve the quality of life for employees and their families as well as for the local community and society at large

27. Japan usa Belong to group Team players Substantial respect to authority Live to work Loyal to Company Collective responsibility Paternity style Monitoring by employees Slow decision making Individual Competitive Minimal respect to authority Work to live Loyal to Self Individual responsibility Directive style Monitoring by managers Quick decision making

28. Thank you