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Japanese style of management

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Japanese style of management

  1. 1. Prepared by Andrews
  2. 2.  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. 3. Japanese companies, like Japanese society, are hierarchically organized with individuals knowing their position within a group and with regard to each other
  4. 4.  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. 5.  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. 6.  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. 7.  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. 8. 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. 9.  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 o “Rom was not built in a day” approach
  10. 10. Belief: Japanese management system is so unique that it cannot be easily transferred overseas because these processes of management are culture bound
  11. 11. STRENGHTS: - Closer relationships - Non-competition among employees - Consensus decision making WEAKNESSES: - Slow promotion system - 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. 12.  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. 13. 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. 14. 1. Eliminate waste 2. Minimize inventory 3. Maximize flow 4. Pull production from customer demand 5. Meet customer requirements 6. Do it right the first time 7. Empower workers 8. Design for rapid changeover 9. Partner with suppliers 10. Create a culture of continuous improvement (Kaizen)
  15. 15. 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. 16. 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. 17. 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. 18.  T TOTAL  Q QUALITY  M MANAGEMENT
  19. 19. “T” TOTAL • ALL FUNCTIONS / AREAS / DEPTTS. • ALL ACTIVITIES • ALL EMPLOYEES • ALWAYS • AT ALL PLACES
  20. 20. 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. 21. MEANS MANAGEMENT WHICH ACTUALLY MEANS AN INTEGRATED AND CONTINUAL ACTIVITY TO RAISE QUALITY OF A COMPANY AT COMPANY-WIDE LEVEL.
  22. 22. 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. 23.  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. 24.  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. 25. Technolog y 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. 26.  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. 27.  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. 28. Thank you

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