2.  Today, Japan is considered as one of the
super-economic powers of the world.
 As the saying goes: Rome was not built in a
day, Japan was also not built in a day.
 Japan as it stands today, is due to the
efforts of Japanese people…
 According to William Ouchi , “Theory Z” is
the name given to Japanese Management
style.

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

4. SPEACIAL FETURES OF JM
Lifetime Employment
 Guaranteeing work until the
mandatory retirement age.
Seniority based promotion and wage system
 The promotion from lower level to
immediate higher level is mostly
based on seniority
Just-In-Time (The Production)System
 Integrated set of activities designed to
achieve high-volume production using
minimal inventories of raw materials,
finished goods & work in process

5. Quality Control (QC)
Kaoru Ishikawa
(Father of Quality Circle)
 Around 10 workers who meet weekly.
 Quality circles focus on concrete aspects of the
operations.
 It also provide workers to participate in
company affairs .
 Employee suggestions play an important role
in Japanese companies.
 Managing the company with the "Quality
First" concept.

6. Company
 1) Production Capacity
 2) Quality of Goods and Services
 3) Cost of Operation
 4) Delivery timing
 5) Safety
 6) Morale

7.  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

8.  In-house training of managers
 consensual and decentralized decision-
making
 extensive use of quality control methods
 carefully codified work standards
 emphasis on creating harmonious relations
among workers
 lifetime employment and seniority-based
compensation

9. The management systems of Japanese companies
exhibit a number of distinctive characteristics
 Management Philosophy and Corporate
Identity
 Corporate Structure
 Company Strategy
 The "Ringi System: and Decision Making
 Communication

10. The top-management in Japanese companies has
an extremely open structure.
Corporate Structure
(A Japanese company is fully participatory and not
Authoritative)
TOP
Middle
Lower Middle
Shop floor Workers

11. Roles at Different Levels
TOP LEVEL
• Determination of corporate policy
•Full support for managers and workers
•External relations for favorable operations
MIDDLE LEVEL
•General planning and friendly supervision
•Facilitating pleasant work atmosphere
•Assistance for non-supervisory employees
•Development of self and subordinates
•Positive evaluation of employee performance
•Cooperation with other departments
•Promotion of good human relations
LOWER LEVEL
•On the spot planning and reporting
•Facilitating workplace meetings
•Continuous improvement- technical and human
•Cooperation for productivity, quality, human relations
•Sharing information and experience

14.  Qualified senior management
 Low costs of production
 Quality control
 Diversified & strong market positions in
established & growing markets
 Good fit between organization
structure & competitive environment

15.  Limited scope for continued
expansion with existing managerial
capacity
 Relative difficulty in transferring
Japanese management style across
cultures
 continued growth will be difficult.