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Techniques of Japanese Management

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What makes Japanese companies more progressive than others? It actually lies in their employee centered way of management and utmost dedication to Quality.

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Techniques of Japanese Management

  1. 1. Techniques of Japanese Management Francis Paul V. Jagolino, M.D.
  2. 2. Japanese Management Culture • Service to the public – by providing high-quality goods and services at reasonable prices, we contribute to the public’s well-being; • Fairness and honesty – we will be fair and honest in all our business dealings and personal conduct; • Teamwork for the common cause – we will pool abilities, based on manual trust and respect; • Uniting effort for improvement – we will constantly strive to improve our corporate and personal performances;
  3. 3. Japanese Management Culture • Courtesy and humility – we will always be cordial and modest and respect the rights and needs of others; • Accordance with natural laws – we will abide by the laws of nature and adjust to the ever- changing conditions around us; and • Gratitude for blessings – we will always be grateful for all the blessings and kindness we have received.”
  4. 4. Techniques of Japanese Management • Theory Z • Quality of Work Life (QWL) • Quality Circles
  5. 5. Theory Z • A “Japanese Management Style” popularized by Dr. William Ouchi. • Theory Z focused on increasing employee loyalty to the company by providing a job for life with a strong focus on the well-being of the employee, both on and off the job.
  6. 6. Theory Z According to Dr. Ouchi, Theory Z management tends to promote: • Stable Employment • High Productivity • High employee morale and satisfaction
  7. 7. Theory Z as an Approach to Management • Humanistic approach to management • Hybrid management approach combining Japanese management philosophies with U.S. culture. • Places a large amount of freedom and trust with workers • Assumes that workers have strong loyalty in both teamwork and the organization
  8. 8. Characteristics of Theory z • Long-term employment and job security • Collective responsibility • Implicit, informal control with explicit, formalized measures • Collective decision-making • Slow evaluation and promotion • Moderately specialized careers • Concern for a total person, including their family (Holistic Concern)
  9. 9. Long-term employment and job security (Shushinkuyo) • New employees are recruited directly from school rather than in an open job market. • An exchange of commitment between the employer and the employee. • The employer must be prepared to make sacrifices for the employee to ensure lifelong loyalty and commitment.
  10. 10. Collective Responsibility • The entire workforce is held responsible for failure to achieve corporate targets • “The fault of one is the fault of all” • Trust is a key essence in ensuring that teams meet their objectives and goals.
  11. 11. Implicit, informal control with explicit, formalized measures • Employees are briefed on what needs to be done but not specifically told how to do it. • Assumes that every employee will use their intellect, skills and ingenuity to accomplish their task. • Despite minimal supervision, strict Key Performance Indicators (KPI) must be met.
  12. 12. Collective decision-making • All decision making in Japanese companies is a group process. Ringi System of Decision-making: • Newawashi (Tree Root): Preliminary and informal sounding out of employees’ ideas about a proposed course of action or project. • Ringi Seido (Proposal, Decisions, Action): A formal process that provides the opportunity for equal ranking managers or employees of a group within a company to partake in an individual’s idea.
  13. 13. Slow evaluation and promotion • The longer than employee stays, the more chance of getting promoted. • A major motivation for an employee to stay in a company. • Japanese employees generally stay an average of 7-10 years in a company before being promoted. • Affirms the company’s commitment to the employee for lifelong employment.
  14. 14. Moderately specialized careers • Traditional Japanese Career paths are more “non- specialized” allowing employees to rotate roles and jobs on a frequent basis. • American Career paths are more geared towards “mastery of craft/specialization” allowing little or no crossing between functional roles. • A Type Z Career path is the “middle of the road” where employees are allowed to rotate roles but on a less frequent basis.
  15. 15. Concern for a total person, including their family (Holistic Concern) • The Japanese strongly believe that problems at home will affect work performance. • Employees and their families are seen as one entity. • Companies usually offer many benefits like family allowances, insurance, housing assistance and other needs for the employee and their immediate family.
  16. 16. Quality of Work Life
  17. 17. Quality Of Work Life (QWL) • Quality of relationship between employees & total working environment • a process by which an organization responds to employee needs • Varying from industry to industry
  18. 18. OBJECTIVES 1. To create a positive attitude  2. To increase productivity 3. To improve standard of living of the employees
  19. 19. MAJOR ISSUES IN QWL 1. Pay and stability of employees • Employees will demand more in the form of social security and welfare benefits • Not giving out proper salaries will affect the QWL 2. Job security • Should not have any fear of losing their job • Systems with healthy working conditions & optimum financial security
  20. 20. 3.Occupational stress • Due to working conditions, working schedule , hypertension, irritability, conflicts etc.. • Adversely effect employ productivity 4. Adequacy of resources • Match between resource availability & company objectives • Leads to employee dissatisfaction
  21. 21. STRATEGIES FOR IMPROVEMENT OF QWL 1. Self managed work teams • Autonomous work group or integrated work teams • Plan , coordinate & control activities with the help of team leader • employee participation
  22. 22. 2. Participative management • Allowed to participate in management participative schemes – quality circle • Develop a positive attitude 3. Worker- Supervisor relationship • Social association , belongingness, achievement of work results etc…
  23. 23. 4. Promotion • Opportunity to move in to jobs with high job satisfaction and prestige 5. Recognition • Recognizing workers as Human beings rather than as mere employees. Performance based reward system job enrichment incentives etc…
  24. 24. 6.Organizational health programs • Educating employees about health problems • Results in reduction of absenteeism, hospitalization etc.. 7. Alternative work schedules • Work at home, flexible working hours, part time employment etc…
  25. 25. CONCLUSION • Quality Work Life basically is all about employee involvement, which consists of methods to motivate employees to participate in decision making. This helps in building in good relationships • To retain a good talent ,organizations should have low stress levels and high quality of work life.
  26. 26. Quality Circle
  27. 27. INTRODUCTION • Quality circles were originally associated with Japanese management and manufacturing techniques. • Quality Circle is one of the employee participation methods. • It implies the development of skills, capabilities, confidence and creativity of the people through cumulative process of education, training, work experience and participation. • It also implies the creation of facilitative conditions and environment of work, which creates and sustains their motivation and commitment towards work excellence. • Quality Circles have emerged as a mechanism to develop and utilize the tremendous potential of people for improvement in product quality and productivity.
  28. 28. DEFINITION • Quality Circle is a small group of 6 to 12 employees doing similar work who voluntarily meet together on a regular basis to identify improvements in their respective work areas. • They use proven techniques for analyzing and solving work related problems coming in the way of achieving and sustaining excellence leading to mutual empowerment of employees as well as the organization. • It is "a way of capturing the creative and innovative power that lies within the work force".
  29. 29. PHILOSOPHY • Quality Circles is a people – building philosophy, providing self-motivation and happiness in improving environment without any compulsion or monetary benefits. • A philosophy of managing people and methods to make this philosophy a way of life. • The Quality Circle philosophy calls for a progressive attitude on the part of the management and their willingness to make adjustments, if necessary, in their style and culture.
  30. 30. CONCEPT • The concept of Quality Circle is primarily based upon recognition of the value of the worker as a human being, as someone who willingly capitalizes on his wisdom, intelligence, experience, attitude and feelings. • Quality Circle concept has three major attributes: – Quality Circle is a form of participation management. – Quality Circle is a human resource development technique. – Quality Circle is a problem solving technique.
  31. 31. OBJECTIVES The objectives of Quality Circles are multi-faceted. a) Change in Attitude From "I don’t care" to "I do care" Continuous improvement in quality of work life through humanization of work. b) Self Development Bring out ‘Hidden Potential’ of people People get to learn additional skills.
  32. 32. OBJECTIVES c) Development of Team Spirit Individual Vs Team – "I could not do but we did it" Eliminate inter departmental conflicts. d) Improved Organizational Culture Positive working environment. Total involvement of people at all levels. Higher motivational level.
  33. 33. TRAINING • Appropriate training for different sections of employees needs to be imparted. • Without a proper understanding of the real concept of Quality Circles, both the workers and management might look at this philosophy with suspicion. • Each group should know beforehand the commitments and implications involved as well as the benefit that can be obtained from Quality Circles. • Such training comprises of : Brief orientation program for top management. Program for middle level executives. Training of facilitators (Train the Trainer). Training for Circle leaders and members.
  34. 34. Organizational Structure A steering committee Coordinator Facilitator Circle leader Circle members
  35. 35. LAUNCHING QUALITY CIRCLES The major prerequisite for initiating Quality Circles in any organization is the total understanding of, as well as complete conviction and faith in the participative philosophy, on the part of the top and senior management. The launching of Quality Circles involves the following steps: o Expose middle level executives to the concept o Explain the concept to the employees and invite them to volunteer as members of Quality Circles. o Nominate senior officers as facilitators
  36. 36. LAUNCHING QUALITY CIRCLES o Form a steering committee. o Arrange training of coordinators, facilitators in basics of Quality Circle approach, implementation, techniques and operation o A meeting should be fixed preferably one hour a week for the Quality Circle to meet. o Formally inaugurate the Quality Circle. o Arrange the necessary facilities for the Quality Circle meeting and its operation.
  37. 37. PROCESS OF OPERATION The operation of quality circles involves a set of sequential steps as under: Problem identification: Identify a number of problems. Problem selection : Decide the priority and select the problem to be taken up first. Problem Analysis : Problem is clarified and analyzed by basic problem solving methods. Generate alternative solutions : Identify and evaluate causes and generate number of possible alternative solutions.
  38. 38. PROCESS OF OPERATION Select the most appropriate solution : Discuss and evaluate the alternative solutions by comparison in terms of investment and return from the investment. Prepare plan of action : Prepare plan of action for converting the solution into reality which includes the considerations "who, what, when, where, why and how" of solving problems. Present solution to management : Circle members present solution to management for approval. Implementation of solution : The management evaluates the recommended solution. Then it is tested and if successful, implemented on a full scale.
  39. 39. BENEFITS AND LIMITATIONS OF QUALITY CIRCLES Advantages of quality circles • Increase Productivity • Improve Quality • Greater upward flow of information • Boost Employee Morale Disadvantages/problems with QC • Inadequate Training • Lack of Management commitment and support • Jealousy and Envy by non-participants • Quality Circles are not really empowered to make decisions.
  40. 40. CONCLUSION • Quality Circles are not limited to manufacturing firms only. • They are applicable for variety of organizations where there is scope for group based solution of work related problems. Quality Circles are relevant for factories, firms, schools, hospitals, universities, research institutes, banks, government offices etc.
  41. 41. Thank You  ありがとう Arigatō 

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