2. 2
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
3. 3
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
4. 4
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
5. 5
JAPANESE MANAGEMENT
OVERSEAS
Japanese firms – more Outsider
than firms from other countries
Manufacturing subsidiaries: average of 4
Electronics industry – mean was 5.03;
Overall average in Asia: 3.25
6. 6
COMMON BELIEF
Belief: Japanese management system
is so unique that it cannot be easily
transferred overseas because these
processes of management are culture
bound
7. 7
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
8. 8
HUMAN RESOURCE PRACTICES
FOR LOCALLY HIRED
MANAGERS OUTSIDE OF JAPAN
Prevailing market rates – no attention
paid to seniority & bonuses rarely paid
Employee welfare system usually
absent – future of employees
depended upon the market
performance of the subsidiary
9. 9
POTENTIAL AFFECT
Program intended to enable the firm to maintain its
strategy of:
– minimizing costs
– occupying the maximum competitive space
– Allowing continued diversification of production locations
Impact upon the firm:
– Expectations from the local managers
– Communication problems since Japanese are not very
bilingual
– Possibility of ties weakening between head office &
subsidiary
10. 10
WHAT ALTERNATIVES?
Increase recruitment of Japanese
managers
Reduce requirements for expatriate
managers
Alleviate pressure on cost control
Diversify upstream, out of small motors
13. 13
Quality Guru
Kaoru Ishikawa
Father of Quality Circle
Launches Japan’s Quality Movement in 1960s.
Series of Articles in his Magazine “ Gemba to Q A”
Fish Bone Diagram
Quality circle was first piloted at Nippon Telegraph & Cable company in 1962 -
…1978- One Million QC’s - 10 million employees.
…2000- Two Million QC’s- 20 million employees.
Book “ What is TQC?”
Given Seven basic tools for Quality- 1. Pareto Analysis 2.Fish Bone Diagram
3 Stratification 4.Tally chart
5 Histograms 6.Scatter Diagram
7 Control Charts
Book Guide to Quality Control in 1974
Binomial Probability & Sampling
14. 14
Dr Genichi Taguchi
In the early 1970s Taguchi developed the concept of
the "Quality Loss Function" and by the end of that
decade was highly acclaimed in his own country.
It was not until 1980 that Western companies,
particularly in the USA began to implement
Taguchi's methods. The most notable of these being
Xerox, Ford and ITT.
Taguchi had made little impact in Europe until the
Institute of Statisticians organised a conference in
London in 1987 to discuss his methods
15. 15
Shigeo Shingo
His method, poka-yoke or zero mistakes,
stops the process whenever a defect
occurs, defines the cause and prevents
the recurring source of the defect. The
method relies on a process of
continuously monitoring potential
sources of error. The machines used in
this process are equipped with feedback
instrumentation that identifies errors
before they become defects, so remedial
action can be taken
17. 17
WHAT IS TQM ?
“T” TOTAL
•ALL FUNCTIONS / AREAS / DEPTTS.
•ALL ACTIVITIES
•ALL EMPLOYEES
•ALWAYS
•AT ALL PLACES
18. 18
WHAT IS TQM ?
“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.
19. 19
WHAT IS TQM ?
“M” MANAGEMENT
MEANS MANAGEMENT WHICH ACTUALLY
MEANS AN INTEGRATED AND CONTINUAL
ACTIVITY TO RAISE QUALITY OF A
COMPANY AT COMPANY-WIDE LEVEL.
20. 20
TQM DEFINED
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.
21. 21
What Does Kaizen Mean?
KAI ZEN
To modify, to change Think, make good, make better
= KAIZEN
Make it easier by studying it, and making the improvement
through elimination of waste.
22. 22
Just-In-Time (JIT)
JIT: an integrated set of activities designed to
achieve high-volume production using minimal
inventories of raw materials, finished goods &
work in process.
Management philosophy…Nothing produce until
needed.
Encompasses the successful execution of all
production activities required from design to
delivery of products.
Common sense based/simple techniques
23. 23
Knowledge Worker
Knowledge worker, a term coined by Peter
Drucker in 1959, is one who works primarily with
information or one who develops and uses
knowledge in the workplace.
Also called as intellectual worker or brain worker
A Knowledge Worker's benefit to a company could
be in the form of developing business intelligence,
increasing the value of intellectual capital, gaining
insight into customer preferences, or a variety of
other important gains in knowledge that aid the
business
24. 24
Knowledge Worker
A knowledge worker is anyone who works for a
living at the tasks of developing or using
knowledge.
For example, a knowledge worker might be
someone who works at any of the tasks of planning,
acquiring, searching, analyzing, organizing, storing,
programming, distributing, marketing, or otherwise
contributing to the transformation and commerce of
information and those (often the same people) who
work at using the knowledge so produced.
25. 25
Knowledge network of
knowledge workers
Knowledge workers work in an environment
described as a knowledge network.
Popper (1963) states there is always an increasing
need for knowledge to grow and progress
continually, whether tacit or explicit. Knowledge
grows like organisms, with data serving as food to
be assimilated rather than merely stored.
All knowledge workers, particularly R&D project
managers, need to easily access and search
internal and external knowledge bases
26. 26
Management of
knowledge workers
Knowledge workers are believed to produce more when
empowered to make the most of their deepest skills;
they can often work on many projects at the same time;
they know how to allocate their time; and
they can multiply the results of their efforts through soft
factors such as emotional intelligence and trust.
♦ Organizations designed around the knowledge worker
(instead of just machine capital) are thought to integrate the
best of hierarchy, self-organization and networking rather
than the worst. Each dictates a different communications
and rewards system, and requires activation of knowledge-
sharing and action learning.
27. 27
The Knowledge Age
The third wave of human socio-economic development is
described by Charles Savage in "Fifth Generation
Management." The first wave was the Agricultural Age with
wealth defined as ownership of land. In the second wave, the
Industrial Age, wealth was based on ownership of Capital, i.e.
factories. In the Knowledge Age, wealth is based upon the
ownership of knowledge and the ability to use that knowledge
to create or improve goods and services. Product
improvements include cost, durability, suitability, timeliness of
delivery, and security.
In the Knowledge Age, 2% of the working population will work
on the land, 10% will work in Industry and the rest will be
Knowledge Workers
28. 28
Hierarchy of knowledge Work
Knowledge work, ranges from tasks performed by individual
knowledge workers to global social networks. This framework
spans every class of knowledge work that is being or is likely
to be undertaken. There are seven levels or scales of
knowledge work.
• Knowledge work, (e.g., writing, analyzing, advising) is
performed by subject-matter specialists in all areas of an
organization. Although knowledge work began with the origins
of writing and counting, it was first identified as a category of
work by Drucker (1973).
• Knowledge functions (e.g., capturing, organizing, and
providing access to knowledge) are performed by technical
staff, to support knowledge processes projects. Knowledge
functions date from c. 450 BC, with the Chanakya, but their
modern roots can be linked to the emergence of information
management in the 1970s
• Knowledge processes (preserving, sharing, integration) are
performed by professional groups, as part of a knowledge
management program. Knowledge processes have evolved in
concert with general-purpose technologies, such as the
printing press, mail delivery, the telegraph, telephone
networks, and the Internet.
29. 29
Hierarchy of knowledge Work
Knowledge management programs link the generation of
knowledge (e.g., from science, synthesis, or learning) with its
use (e.g., policy analysis, reporting, program management) as
well as facilitating organizational learning and adaptation in a
knowledge organization. Knowledge management emerged
as a discipline in the 1990s.
• Knowledge organizations transfer outputs (content, products,
services, and solutions), in the form of knowledge services, to
enable external use. The concept of knowledge organizations
emerged in the 1990s.
• Knowledge services support other organizational services,
yield sector outcomes, and result in benefits for citizens in the
context of knowledge markets. Knowledge services emerged
as a subject in the 2000s..
• Social networks enable knowledge organizations to co-
produce knowledge outputs by leveraging their internal
capacity with massive social networks. Social networking
emerged in the 2000s.
30. 30
Corporate Social Responsibility
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.
31. 31
Corporate Social Responsibility
There is no universally accepted definition of CSR. Selected definitions by CSR
organizations and actors include:
World Business Council for Sustainable Development
"Corporate Social Responsibility is the continuing commitment by business to
behave ethically and contribute to economic development while improving the
quality of life of the workforce and their families as well as of the local
community and society at large"
Mallen Baker
"CSR is about how companies manage the business processes to produce
an overall positive impact on society."
CSR Asia
"CSR is a company’s commitment to operating in an economically, socially
and environmentally sustainable manner whilst balancing the interests of
diverse stakeholders."
International Finance Corporation
"Corporate social responsibility is the commitment of businesses to contribute
to sustainable economic development by working with employees, their
families, the local community and society at large to improve their lives in
ways that are good for business and for development”
European Commission "A concept whereby companies integrate social and
environmental concerns in their business operations and in their interaction
with their stakeholders on a voluntary basis."
32. 32
Corporate Social Responsibility
Dr. Reddy's corporate
social responsibility -
Truly sustainable ...
Corporate social
responsibility - Dr.
Reddy's believe that
any high performance
sustainable
organization rests on
the three pillars of
economic, social and
Emplioyees.
33. 33
ITC’s e-Choupal’
‘e-Choupal’ also unshackles
the potential of Indian
farmer who has been
trapped in a vicious cycle of
low risk taking ability > low
investment > low
productivity > weak market
orientation > low value
addition > low margin > low
risk taking ability. This made
him and Indian agribusiness
sector globally
uncompetitive, despite rich
& abundant natural
resources.
34. 34
Corporate Social Responsibility
Infosys Foundation, the philanthropic
arm of Infosys Technologies Ltd., came
into existence on 4th December 1996
with the objective of fulfilling the social
responsibility of the company by
supporting and encouraging the
underprivileged sections of society. In a
short span of time, the Foundation has
implemented numerous projects in its
chosen areas. The Foundation has
undertaken various initiatives in
providing medical facilities to remote
rural areas, organizing novel pension
schemes and in aiding orphans and
street children. It has undertaken a
large rural education program titled "A
library for every school" under which
5500 libraries have been set up in
government schools spread across
many villages. Other activities include
the reconstruction of old school
buildings, setting up of rural Science
Centers and schemes to provide
support to dying traditional art and
culture forms
THE SOCIAL COMMITMENT
NTPC believes in growth with a human
face, and pursuing people-centred
development. NTPC is a socially
committed organisation and a socially
responsible corporate citizen. It
attaches great importance to
discharging its overall social
responsibilities to the community and
the society at large where its projects
and stations are located. In this regard
Resettlement and Rehabilitation (R&R)
program becomes an area of sharp
focus, a program that addresses people
affected directly or indirectly in the wake
of the projects undertaken by NTPC.
35. 35
Corporate Social Responsibility
The term 'corporate social responsibility' or sustainability is of relatively recent vintage. Not so the
philosophy of social responsibility that underlines the Tata way of conducting its businesses, and the
manner of its interactions with all the constituents that come under the canopy of corporate social
responsibility. The multitude of initiatives the Group has nurtured from its earliest days flows from a
wellspring of voluntary, as opposed to obligatory commitment
Principles first
An implicit sense of ethical business conduct has been the cornerstone of the Tata way in the corporate
governance sphere. On issues ranging from customer care and business excellence to financial
propriety and more, explicit rules and regulations supplement the traditional values on which the Tata
Group companies has been shaped.
A feel for people
With some 2,46,000 members in its diverse and widespread family, the Tata Group is more than just another
employer. The Group's many pioneering initiatives to benefit and empower employees have few parallels anywhere
in the world, and it has blended its traditional benevolence with evolving human resource methodologies to deliver a
whole lot beyond mere jobs
Green at heart
The Tata ethos places a special emphasis on environmental and ecological issues. The Group's efforts to
preserve and regenerate the environment find expression in the slew of projects and programmes in has
undertaken in and around its facilities and operations.
Caring and sharing
From health and education to livelihoods and women-children welfare, from tribal hamlets in Jharkhand
and the rural outback of Gujarat to the high ranges of Kerala and disadvantaged villages in Andhra
Pradesh — the community work being undertaken by the companies and trusts of the Tata Group
touches a multitude of Indians across the land. Beyond purely social work, this support extends to
individuals and institutions pursuing artistic and sporting excellence.
